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You can find the current article at its original source at http://www.theguardian.com/environment/2015/oct/08/second-solar-firm-in-two-days-goes-bust-blaming-tory-policy
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| Second solar firm in two days goes bust, blaming Tory policy | Second solar firm in two days goes bust, blaming Tory policy |
| (about 2 hours later) | |
| Climate Energy, a company specialising in installing solar panels and home insulation, has been forced into liquidation - the second such business in as many days to collapse blaming government policies. | Climate Energy, a company specialising in installing solar panels and home insulation, has been forced into liquidation - the second such business in as many days to collapse blaming government policies. |
| Around 30 of the 128 staff have been immediately laid off by FTI Consulting, the professional services firm brought in to try to rescue Climate Energy and its subsidiaries which had revenues of £47m last year. | Around 30 of the 128 staff have been immediately laid off by FTI Consulting, the professional services firm brought in to try to rescue Climate Energy and its subsidiaries which had revenues of £47m last year. |
| “The administrators are not in a position to trade the companies following the administration. However we are endeavouring to migrate the work in progress and orders to a potential purchaser,” said Andrew Johnson at FTI in a letter to homeowners using Climate Energy services. | “The administrators are not in a position to trade the companies following the administration. However we are endeavouring to migrate the work in progress and orders to a potential purchaser,” said Andrew Johnson at FTI in a letter to homeowners using Climate Energy services. |
| Related: UK solar firms going bust - what consumers need to know | |
| A spokeswoman for the administrators said the company, which has offices in Bristol, Croydon and Motherwell as well as headquarters in Witham, Essex, said cuts in government subsidies were a “contributory factor” in Climate Energy’s demise. | A spokeswoman for the administrators said the company, which has offices in Bristol, Croydon and Motherwell as well as headquarters in Witham, Essex, said cuts in government subsidies were a “contributory factor” in Climate Energy’s demise. |
| The move follows almost 1,000 redundancies on Wednesday at the Mark Group after it too was forced to call in administrators from Deloitte amid mounting financial losses. | The move follows almost 1,000 redundancies on Wednesday at the Mark Group after it too was forced to call in administrators from Deloitte amid mounting financial losses. |
| The Mark Group was until hours before its failure owned by the major US group, SunEdison, which passed the Leicester-based business on to its managers who immediately announced it insolvent. | The Mark Group was until hours before its failure owned by the major US group, SunEdison, which passed the Leicester-based business on to its managers who immediately announced it insolvent. |
| Mark Babcock, vice-president of SunEdison’s residential and commercial business unit in Europe, pointedly blamed the government for Mark Group’s problems: “Given the latest changes and proposed changes to the feed-in tariff [subsidy regime], it is difficult to see this [Britain] as a viable market going forward.” | Mark Babcock, vice-president of SunEdison’s residential and commercial business unit in Europe, pointedly blamed the government for Mark Group’s problems: “Given the latest changes and proposed changes to the feed-in tariff [subsidy regime], it is difficult to see this [Britain] as a viable market going forward.” |
| In the months since the general election and the introduction of Amber Rudd, the secretary of state for energy and climate change, there has been a major change in policy direction. | In the months since the general election and the introduction of Amber Rudd, the secretary of state for energy and climate change, there has been a major change in policy direction. |
| Related: The nine green policies killed off by the Tory government | Related: The nine green policies killed off by the Tory government |
| A range of cuts have been made to wind and solar subsidies, with the latest being consultation on a proposed 87% cutting of financial aid. Rudd argues that continuing subsidies are no longer needed at past levels because technology costs have fallen and consumers need to be protected from higher energy bills. | A range of cuts have been made to wind and solar subsidies, with the latest being consultation on a proposed 87% cutting of financial aid. Rudd argues that continuing subsidies are no longer needed at past levels because technology costs have fallen and consumers need to be protected from higher energy bills. |
| However, critics believe the attack is driven by George Osborne as part of a wider austerity policy and to please the many Conservative backbenchers who believe “green” power is expensive and unnecessary. | However, critics believe the attack is driven by George Osborne as part of a wider austerity policy and to please the many Conservative backbenchers who believe “green” power is expensive and unnecessary. |
| But one Conservative MP David Warburton has called for a re-think on government plans, warning that the proposed cuts to subsidies are “draconian”. | But one Conservative MP David Warburton has called for a re-think on government plans, warning that the proposed cuts to subsidies are “draconian”. |
| The representative for Somerton and Frome in Somerset said: “We know the solar industry fully expected some rationalisation, but a drop of up to 87% in subsidies overnight is draconian and more than I suspect the industry can bear. For rooftop solar projects, this would mean an 82% cut to the existing subsidy rate of 11p to 3.69p. This would be a disaster for community energy projects like these in Frome, which are putting power - literally - in the hands of local people.” | The representative for Somerton and Frome in Somerset said: “We know the solar industry fully expected some rationalisation, but a drop of up to 87% in subsidies overnight is draconian and more than I suspect the industry can bear. For rooftop solar projects, this would mean an 82% cut to the existing subsidy rate of 11p to 3.69p. This would be a disaster for community energy projects like these in Frome, which are putting power - literally - in the hands of local people.” |