The end of the 2015/16 financial year has seen a wave of insolvencies in the renewable energy sector according to the Yorkshire Post. The wave of bankruptcies and redundancies are directly attributable to the UK government’s decision to scrap subsidies and impose new taxes on the industry:
“According to the insolvency trade body R3, its membership has seen a wave of insolvency activity across the UK from small and medium sized businesses in or supplying the renewable energy sector. This followed the 65 per cent cut in subsidies to solar support from last December, which coincided with increases in VAT on the installation of solar systems.”
The full extent of the problem is not yet known, but thousands of small and medium sized businesses involved in installing and supplying renewable energy systems will have become insolvent almost overnight, with very few able to restructure and refinance their operations.