Yes, 2020 was a challenging year all round, but here at Genesis as we look to 2021 and beyond we have a positive outlook for the UK Solar PV Market.
Green Energy Focus
Even with a conservative forecast in this post-subsidy world, the robust UK Solar PV market will continue to grow.
With the rapid take-up of electric vehicles and the UK’s government firm commitment to net-zero carbon emissions by 2050, and with Solar PV being the most cost-effective renewable energy solutions. We believe Solar will be at the forefront in the UK’s transition to a net-zero economy.
Also, the UK is hosting the 26th UN Climate Change conference in November which will ensure the green energy agenda remains in the spotlight and brings solar to the fore, inspiring people to take action.
We believe that if the government are to hit their green energy targets, they will have to provide significant incentives to further accelerate green energy growth, helping the Solar PV market to grow and flourish.
Coronavirus, customs and cash flow continue to present challenges for us in 2021. The most pressing being the current inflated transportation costs.
In the last four months, we have seen shipping cost for a 40’ container increase by a staggering 756%. In normal times the spot market price for a 40‘ container from our factory in China to the UK is just below £2,000 (7.5% of purchase cost). However, this week two of our containers arrived and cost £7,000. And these freight costs continue to escalate – the current price being £12,000 (29% of the cost) resulting in us delaying further containers until March.
Due to COVID-19 lockdowns across Europe, there is very little return freight to China causing ocean freight imbalance this is likely to continue for at least the next six months.
This problem has been exacerbated with congestion problems at Felixstowe, Southampton and London Gateway ports leading to delays. As the pandemic has impacted on delivery times and the availability of labour at ports. Many vessels have been detained for an extended period during un-loading and with some shipping lines as a result even rejecting UK bookings!
We believe these inflated freight costs and transportation issues will reduce in the latter half of 2021 and we will continue to closely monitor these. However in the meantime, the impact will require a modest price increase to offset these high costs.
We are looking forward to 2021 as the world begins to recover from Covid-19 and the UK continues to embrace green energy and solar panel PV in particular. If you would like to discuss any of the issues raised in this article please contact us on 01604 877573 or contact us online.