Solar Firm Put On Receivership
Solar Shop Australia Pty Ltd., Australia's largest provider of solar PV systems has been put on receivership, a move that has shaken and disappointed the solar industry.
The Sydney Morning Herald reports that Ferrier Hodgson, an accounting firm specializing in insolvency, were appointed as receivers. In particular, James Shady, John Hart and John Lindholm will manage Solar Shop Australia while it is on receivership.
"The receivers and managers are continuing to trade business as usual in the short term while they endeavour to find a purchaser for the business on a going concern basis," Ferrier Hodgson said.
The Sydney Morning Herald also said the Solar Shop Australia's woes came in the wake of "regulatory changes" that affected the renewable energy sector. Solar Shop Australia directly employs around 200 people.
"People who have been watching the renewable energy sector would be aware that there have been a number of regulatory changes that have eroded the value of the certificates attached to renewable energy installations," the Sydney Morning Herald quoted Lindholm as saying.
"This (change) has had a significant impact on Solar Shop as the business structure could not cope with the collapse in the price of STCs (Small-scale Technology Certificates). This business has been hit by the turbulence you'd expect in an emerging sector," Lindholm added.
Australian Solar Energy Society chief executive John Grimes said they long raised the alarm bells for the government come up with a "fair price" for solar.
“This is precisely the outcome we've been warning governments about, particularly with a company with the reputation and standing of Solar Shop," Grimes said.
"Any company could be vulnerable. What we urgently need to put in place is that solar safety net. There needs to be a national scheme to provide a fair price for solar," Grimes continues.
Grimes said governments should reconsider moves to cut the feed-in tariff for solar panels and pursue renewed commitments towards a "clean energy future."
“A fair price in our view is that people should be paid the same for clean solar power as they pay for coal-fired power from the grid. We're not looking for a handout, we're not looking for a premium price to be paid for solar, all we want is a fair go," he said.
He said the there should be focus on promoting clean energy jobs or green jobs "as our economy transitions to a low-carbon future."