Home improvement company Entu will discontinue its retail solar activities as it expects the market environment for solar in the UK to become even more difficult, SeeNews Renewables has reported.
The firm said this was due to the possible increase in VAT for solar products to 20% from 5%, and the planned cuts to feed-in-tariffs (FiTS) from January 2016.
In the first half of its fiscal year, which will end on October 31, Entu highlighted the difficulties it faced in its solar business. Even the historically stronger months of July and August did not result in improvement in activity levels.
The firm now expects it will lose over £2m in fiscal 2014/15 from the solar division. It said its full-year performance will be below market expectations.
Entu pointed out that it remains confident of the future prospects of its other activities, which include home improvement products, insulation products, boilers and repairs and renewals cover plans.