Updated: 12th October 2015
Close to 1,000 jobs are to be lost at the Mark Group, a solar panel installation specialist, which recently entered administration.
The business had been among the foremost operators of its kind in the UK but has become insolvent and unviable after a downturn in its financial position and prospects in recent months.
A total of 939 redundancies have already been confirmed by administrators of the Mark Group but there is potential for a further 200 jobs to be lost if a buyer for the business cannot be found.
Bosses at the Mark Group have blamed changes in government policy towards renewable energy sector subsidies for a sudden fall in profit-making potential across their industry.
“The turnaround plan, which was already under way, focuses on solar PV, but the government’s recent policy announcements mean this is no longer viable,” a statement from the company said.
Dave Snowden, chief executive of the Sustainable Energy Association, said in response to the news of the Mark Group’s entry into administration: “Ministers were warned long before the election of a confidence problem in the sector due to lack of clarity on policy and frankly could have easily prevented this.
“The government’s rhetoric on meeting climate-change targets, on placing energy efficiency at the heart of energy policy, and the effusive support given by ministers for solar today feels hollow and empty.”
Having been founded in Leicester in 1974, the Mark Group was acquired by the US-headquartered renewable energy company SunEdison in July of this year.
At the time of acquiring the business, SunEdison described the group as being a leading provider of energy efficient solar systems, heating systems and insulation products.
However, SunEdison’s positivity about the company’s prospects has changed dramatically in recent months with its vice president of residential and commercial operations in Europe Mark Babcock suggesting that changes in UK government policy have had a major impact.
“Given the latest changes and proposed changes to the feed-in tariff [subsidy regime], it is difficult to see this [the UK] as a viable market going forward,” he told the Guardian recently. With 86 offices stretching from Inverness down to Exeter, Real Business Rescue can offer unparalleled director advice across the UK.