Thousands of workers for one of the country’s largest solar panel businesses have been put on notice of redundancy on the back of the Government’s decision to cut the subsidy for solar PV under the Feed-in Tariff scheme.
Carillion Energy Services – which is part of the Wolverhampton-based Carillion group – has confirmed 4,500 jobs are under threat.
The announcement came as a survey found that two–thirds of companies in the sector were looking at reducing their workforces on the back of 50 per cent subsidy cut which comes into effect later this month.
Last year Carillion Energy Services enjoyed revenues of almost £800 million and was the major player in providing solar panels for social housing and was was the sole installer for the UK’s largest rent-a-roof scheme, HomeSun.
The company was formally known as Eaga plc but was rebranded after being acquired by Carillion for £306 million earlier this year.
The company is based in Newcastle-upon-Tyne but has operatives throughout the UK.
Eaga was founded in 1990 as the Energy Action Grants Agency (EAGA) Partnership to administer the Home Energy Efficiency Scheme in the local area and was listed in 2007 but had to shed 700 jobs across the country due to Government cutbacks in the Warm Front grant.
A spokesman for the Carillion Energy Services confirmed it had launched a 90-day consultation process to determine the number of job losses.
According to a new survey by MEBC, 66 per cent of businesses expect to be forced to reduce current staff numbers because of subsidy cuts.
Many of the businesses questioned had expected a reduction in subsidy to bring the scheme down to a realistic level and stop the market “overheating” and to curb the excessive profits being made by some.
However, a 50 per cent cut imposed by December 12 was described as a “business killer” and a “Draconian approach that will only serve to kill off demand”.
One response read: “Since the bombshell dropped things are getting hot. ‘‘All the big companies are buying up all the stock and after four days rations are hard to come by.
‘‘We are under constant bombardment and I trust our leaders sitting astride their chargers on the hill are enjoying looking down and watching the slaughter.”
The survey was conducted by the MEBC, the longest running regional business network to focus on sustainable development, and the Midlands branch of the World Business Council based in Geneva.
MEBC boss David Middleton, said: “We have been promoting business opportunity in the renewable sector for years.
‘‘At a time when we are seeking ways of stimulating investor growth in the green economy, the radical and hurtful nature of this deep and speedy cut is very counter-productive.
‘‘It seems like a curious way for a Government that says it is the greenest one ever to go about reducing our carbon footprint, enhancing energy efficiency, and creating jobs and new businesses to help the economy.”
