UK housing maintenance provider Mears Group will reportedly cease solar installation activity as a direct result of the proposed feed-in tariff cuts.
The company said Government’s decision to reduce feed-in tariffs by more than 50 percent, as well as bringing the installation deadline forward to December 12, would chop £2.8 million from its operating profit this year as well as writing off a total of £2 million which was spent setting up the division.
David Miles, Chief Executive of Mears Group said: “Putting to one side the short-term effect of the PV announcement made by the Government, we are pleased with the progress that Mears has made in recent months.
“Our market-leading positions in both our core markets have been enhanced. We have maintained our new contract bidding success and we have good visibility of a further pipeline of new bidding opportunities.
“Whilst PV forms a very small part of our social housing activities, the Government's recent proposals to reduce the PV feed-in tariff are disappointing.
“It is unfortunate that we have wasted both time and resource in this area over the past six months.”
Mears’ interim management statement revealed that the value of new contracts in social housing awarded to the company in the last eight months was £350 million.
“It is essential that solutions are found for the significant number of people living in fuel poverty within the social housing environment,” Miles added.
“We will continue to strive to provide solutions to our customers and clients to address the challenges of fuel poverty.”