SS#9: The end of the 'solarcoaster'?

Hi, Welcome to this week’s Solar Saturday!

Here’s this week’s thought…

If you’ve been around in the UK solar industry in the pre-pandemic times, there’s often a sentimental feeling of nostalgia. Many positive memories of Low Carbon Building Programme, Renewables Obligation Certificates (ROCs) and Feed-in tariffs all provided much joy and excitement for a growing industry over the past years.

There’s an equal amount of negatives (or nightmares) too: including the sudden, knee-jerk policy changes of the Feed In Tariff in 2011, 2012 and again in 2015. Many businesses involved in solar did not survive. Those that did, bunkered down, shed staff and costs, and essentially boot-strapped their businesses. Investment dwindled and battle scars remain to this day.

After the pandemic, life in the UK solar industry today feels different. Energy prices are high and will likely continue higher than pre-pandemic levels according to most analysts I’ve observed. Demand is insane, here and in Europe.

But solar businesses are in a bit of a tough spot - almost not trusting the buoyant demand in the market. Is it the peak of the solarcoaster again?

Somehow, there’s always a feeling that the market will again downturn, or a change in government policy will wipe out any business gains from the last 5 years. Business owners have been nervous.

I think we shouldn’t feel like the car of the rollercoaster is doing to rapidly descend. Fans of Alton Towers will know that the ride ‘Oblivion’ is a rapid descent. The market cannot descend rapidly like this, it’s mature and any dips I suspect are shallow and short-term (if any).

I have seen a definite change in this attitude since January this year. Solar businesses may have woken up from their Christmas slumber with fire in their belly.

There’s a definite desire to upscale. There’s appetite to bring in new resources. Plans are afoot to grow businesses and teams. But..

It’s all a bit hard now for many. It’s difficult to stand out. Everyone is looking for talent. Recruiters are struggling to meet new assigments. Salaries are increasing to attract and solve that.

So, has the UK market finally decided that this level of trade, from the last 12-18 months, may well be the new normal?

I think it is.

I think it’s the end of the thrilling “solarcoaster” - but we can’t get off at the top!

What do you think?

So over to the articles (most popular):

1. Octopus bringing solar+storage tariffs, peak export upto 36.5p kWh

2. Skills upgrade incoming - we launch a collab for training!

3. GivEnergy secures new UK HQ amidst 500% ‘hypergrowth’

Enjoy the weekend!

Sean

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