900 jobs axed at solar energy firm which works in Grimsby area

Britain’s green energy industry faced a mounting crisis yesterday as a second solar panel company collapsed into administration in as many days after cuts to government subsidies.

“Mark Group is now in the hands of administrators who are working to secure an urgent sale of the ongoing business”.

It immediately made 939 redundancies with a further 200 at risk unless a buyer can be found.

The Leicester-based company said that this was its only option after the United Kingdom government’s recent policy announcements made its turnaround plan, which was underway and focused on solar, unviable.

“SunEdison took on the challenge of turning the business around by leveraging the company’s installation experience in the solar PV market”.

Chris Farrington, one of the company’s administrators, said that the company had “sustained heavy losses” as a result of “structural changes in its core markets”.

In July 2013, Mark Group was the UK’s fastest-growing overseas trader, boasting pre-tax profits of £17.8 million.

More than 900 of Mark Group’s 1,165 staff have already been laid off.

Greens are calling for an equivalent package for staff losing their jobs in the energy efficiency sector. Mark Group said its managers have bought the business from SunEdison on Wednesday morning but after taking advice have chose to put it in into administration.

“Energy efficiency is the best way to bring down energy bills, it is key to boosting United Kingdom productivity and the only long term solution to fuel poverty”.

“Of course the sensible thing would be for Government to have consistent policies that promote insulation and small-scale renewable energy installations but, while we wait in hope for Government to realise this, we need support now for workers who have lost their jobs”.

The news comes just a day after the prime minister, David Cameron, boasted that there are “more foreign investment flooding into our country than anywhere else in Europe” in his speech at the Conservative party conference. It also shows onshore wind is now the cheapest source of power in the UK. The government has justified the moves on the grounds that these new technologies can now stand on their own feet without the past levels of subsidies.

Government support has driven down the cost of renewable energy significantly and these costs are continuing to fall.

A Department for Energy and Climate Change spokesman said: “All job losses are regrettable and we sympathise with those affected”. No other reproduction or distribution is permitted without prior written consent. Don’t have an account?