News Article
Seeking solar stability in the UK
Despite the European Commission (EC) revealing its decision on the dumping investigation against China there is little understanding of what impact there will be on the UK solar and PV industries.
There will be no true and firm decision until December when EU member states vote on any proposed response from the investigation. It will be August before the industry has any surety as to the possible direction the EU will have to choose from.
The EC has passed the decision over in setting up a three month window for China and the EU to reach an agreement to avert punitive duties that are as likely to hurt Europe as they are China.
Sometimes it seems that the UK industry is always in a state of uncertainty. If it is not the government causing confusion with FiT tariffs, it is decisions made outside the region that ensure investors are kept on edge and on their toes when trying to determine long term returns on their investment.
Despite the aura of uncertainty the UK solar industry continues to be one of the top markets not just in Europe but the world for doing solar business.
At the moment it is the large scale projects that are causing the most interest and market growth but there is plenty of movement in smaller scale activity that will ensure the UK remains a strong market for solar growth. In fact if the industry is to achieve another 20 GW by 2020 then it will remain a top global market if it is to achieve this goal.
The 20 GW by 2020 has become a bit of a carrot for the industry and will continue to be used as a guide as to whether success is being achieved or not. At times it appears as if the success is occurring in spite of the challenges.
The recent situation with China did provide the UK government with a chance to demonstrate their commitment to the local solar and PV industry. The response showed that despite early hiccups with the industry, there is a real effort by those in Westminster to ensure that the industry not only continues but maintains the path towards 2020.
The real test will be if there is enough of a price rise in product to impact return on investment up against the subsidies. Will the government be as quick to change the subsidy rates if prices go up as they were when they dropped? The industry will be watching closely.
Although there is a chance that the current EC investigation will create challenges for the UK industry there is also opportunities that could arise in the long term.
Some manufacturers are considering setting up European manufacturing to ensure any punitive duties do not impact profit margins. This will not happen immediately and if it were to happen, the UK is in a better position to benefit than many realise. Countries like France and Italy have bonuses for locally
produced products but some Asian companies have expressed concerns at the labour laws there. Something Germany has dealt with for some time.
Sources well placed have suggested there have been talks. It is an opportunity worth keeping an eye open for.
Times may be challenging but there is plenty of room for growth.
