Social housing firm writes off £2m in investment after slash in FiT makes PV commercially unviable

Mears has cut its profit forecast following the government’s decision to half the feed-in tariff for solar photovoltaics.

The social housing business said it would cease activities in the PV market immediately after it concluded that the commercial benefits of PV no longer existed.

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Chief executive David Miles slammed the government’s decision to cut the tariff in a statement to the stock exchange. He said: “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.”

The firm said it would write off £2m already invested in its PV business. As a result Mears revealed that operating profit was now likely to fall short of previous forecasts of around £2.8m.

In an interim management statement the group said its order book had grown to £2.7bn. The group refinanced its debt in September securing a £120m debt facility.