Sharp Corp, a leading Japanese manufacturer of solar cells has given a stark indication of European demand for solar production by investing £29.5 million in its British plant. Growing demand across Europe and in particular in the UK, following the introduction of tariff subsidies has seen the need for Sharp Corp to increase the output of solar cell modules in its Swindon based plant.

The increased investment gives encouraging signs not only for UK manufacturing in the face of the financial crisis but also renewable energy as a means of rejuvenating the struggling economy and generating jobs.

The feed-in tariff system, which came into effect in April this year was devised as a way of attracting investment in renewable energy and has proved successful in countries such as Germany and Spain where tariff payments have offset the initial costs of installing solar plant and offered attractive yields to investors. Sharp Corp have certainly seen an added interest in solar power, reflected by the investment in the manufacturing of essential solar components.

“This time last year 99 per cent of the modules that we manufactured at Wrexham were exported to Europe and that has already dropped to 90 per cent. The feed-in tariff has given confidence to manufacturers like ourselves to invest,” spoke Andrew Lee, General Manager of Sharp Solar.

Indeed, the investment in the UK plant will see four additional production lines taking the capacity of the factory up to 500 mW by 2011. In terms of job creation, the plant which currently employs 750 people is unsure about how many new jobs will be created but green shoots nevertheless for supporters of a low carbon economy.

Sharp Solar announced last week that they will begin to match their photovoltaic (PV) products to individual customer needs in a move designed to meet the needs of the housing trade. Sharp Solar, part of the Japanese electronics company Sharp spoke last week during the Ecobuild exhibition in London and reaffirmed the massive popularity of Solar roofing systems. Sharp Solar announced that interest in PV systems has grown dramatically and that Ecobuild has also highlighted a growing desire from businesses to reduce their carbon footprint and of course hopefully benefit from government schemes which will come in to lay in 2010

The new PV systems will be part of a bespoke service which will allow a choice of colours and more importantly, can be installed on roofs more easily making the possibility of future retrofitting much more convenient as the systems can be locked in to place on brackets. The new ‘Slot and Play’ system which was exhibited in Earls Court last week will offer value to new low carbon projects across the UK where buildings are fitted with the latest PV technology.

Key to the success of companies such as Sharp Solar is the highly popular feed-in tariff, due to be introduced next year by the UK government. Members of the industry have, since November’s Energy legislation and the creation of the Energy and Climate Change department been highly supportive of the tariff system as they believe it will give a much needed kick start to renewable investment as it has done for example in Germany.

Solar Sharp have given their backing to the ‘We Support Solar Campaign’ along with other leading members of the industry, providing a lobby which is seeking to push solar to the forefront of the energy debate and seek key government legislation and funding which will be paramount to the initial success of investment in Photovoltaic technology in this country.

The crucial factor in the success or failure of the solar industry will of course be the feed-in tariff, designed to spur the growth of investment in the renewable sector by guaranteeing long-term, healthy yields to investors. The long-term contracts set a fixed, above market rate for megawatts fed in to the national grid by small (systems under 5MW), green energy producers. The fixed rate for the renewable energy is paid by the power companies, the additional costs of which are absorbed by all consumers adding a small amount to monthly utility bills. Certainly, in order to keep apace with the infrastructure of areas such as Germany and California many believe that the government should set a rate of around 50p/kWh unit generated and the ‘We support Solar Campaign’ will make this clear when they produce their research findings to the government at the end of March.

Regarding the possible findings of the report, Andrew Lee of Sharp Solar commented,

“I can’t pre-empt what it is going to say, but there’s a lot of work being done on feed-in tariffs. There are a number of different options how feed-in tariffs would work, and certain job creation scenarios. There could be 300,000 to 400,000 people in this market if the feed-in tariff is fit for purpose.”