STA Survey Reports Thermal Drop

The Solar Trade Association represents solar thermal and PV installers, manufacturers, suppliers and ancillary companies. It recently conducted a survey of STA members, many of whom are solar thermal installers, to evaluate the size of the drop off in solar thermal business since the arrival of the new government. The resulting levels of this business have dropped off dramatically over the last 3 months. Almost 50% of solar thermal installers are reporting a 75% or more reduction in business since May 6th. New green jobs are also being affected with 65% of these members considering temporarily leaving the solar thermal sector and 7% permanently leaving the sector. This is at a time when we should be developing new solar thermal businesses. This will make targets such as 12% renewable heating by 2020 much more difficult to achieve.

Uncertainty over the new Renewable Heat Incentive (RHI) and the new Government's decision to withdraw the Low Carbon Building Programme grants which were due to run until the start of the proposed RHI in April 2011 mean that householders, organisations and businesses are not committing to solar thermal projects.

This is in strong contrast to the dynamic and buoyant solar PV market which is growing strongly thanks to the introduction of the successful and effective Feed-in-Tariff (FiT). This new Tariff means that the UK is on target for its building integrated renewable electricity targets.

The STA is calling on the new Government to provide clear unambiguous support for the solar thermal & wider renewable heating industry. This support would provide the customer confidence to see the market growing again and would enable the solar thermal & wider renewable heating industry to invest for renewed success.

Howard Johns, STA Chairman said "We have a new Government which claims to be the greenest Government ever, yet in its first days it has caused severe setbacks in what is otherwise a buoyant sector. Removing grant support for solar thermal and giving no clarity on new incentives has severely hit a sector that will provide many green jobs and lots of renewable energy with the right support behind it."