As of: January 27, 2024, 7:52 p.m
By: Amy Walker
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The domestic solar industry has only just recovered somewhat, but it is once again threatened by dumping prices from China.
Consumers should be careful who they currently buy a solar module from.
Berlin – The solar industry is currently experiencing déjà vu: ten years after the first wave of bankruptcies hit German companies, it is once again under massive pressure.
Once again the threat comes from China, which sells its products in Germany at dumping prices - and thus pushes European companies into bankruptcy.
Politicians have already become aware of this situation; Federal Economics Minister Robert Habeck (Greens) is working on a package of measures for the solar industry that is intended to support it.
Dependence on China should be avoided in the energy transition.
At the same time, consumers have to arm themselves to avoid falling prey to dubious companies that are trying to do a good deal in times of booming demand.
The managing director of the Aroundhome recommendation platform, Dagmar Faltis, explains what to pay attention to in an interview with
Ippen.Media.
Solar boom brings many new companies onto the market: what to watch out for
“I usually advocate for established companies that have been on the market for a while and are not just profiteers, that have jumped on the wave, had incredibly fast growth, with incredibly ambitious growth goals,” begins the expert.
New companies that have grown incredibly quickly often do not draw on the same experience as established companies and sometimes act overconfidently and carelessly - which can then get them into trouble.
“But that doesn’t mean that I generally advise against commissioning companies that have only been on the market for a short time.
But you really should do some more research,” says Faltis.
The expert's first and most important tip is: compare several providers, obtain several offers and get an idea.
In addition to market experience and the company's expertise, customer experiences also play a role: Google reviews, posts on social media, discussion forums can help.
Another sign of quality: quality seal (TÜV, RAL) and membership in an association.
“There is the Federal Association of the Solar Industry, for example.
That can definitely be an indicator of good quality.” You should also look at the investor structure, i.e. who supports the company and where the money comes from.
If there are people or companies with experience behind it, then that's a good sign.
Solar modules for a balcony power plant hang on a balcony.
© Stefan Sauer/dpa
According to Dagmar Faltis, other clues that you should look for concern the company's actual offering and its partnerships.
Companies that “think one step further”, i.e. not only offer solar systems, but perhaps also heat pumps or charging stations, or that offer a network system that can combine all of these components - that is more of a sign of quality.
“I think the risk is rather low.”
And then it is also important who the company works with.
“So: Where do the inverter manufacturers come from?
The battery storage manufacturers?
And if this is someone who is completely unknown, as a potential customer you should ask yourself why they don’t work with quality companies,” explains Faltis.
Prices for a solar system: What is a good price today?
Once prospective buyers have compared a few providers and obtained offers, then of course it's all about the costs.
But what is a good price for a solar system today?
When asked this question, Dagmar Faltis says that there was a price drop, which was completely okay.
“Prices have sometimes fallen 40 to 50 percent compared to previous years.
The price used to be around 29,000 euros, which was completely normal, sometimes a little more or less, that was the range.” Now there are quite a few providers who can offer well under 20,000 euros for solar systems, which seems rather questionable to her .
“If things get too cheap, you should become critical.
Because these are the companies that will get into trouble when the wave of demand subsides again.”
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Faltis also explains why some providers are still quite expensive and cannot lower their prices despite the fierce competition.
“Until a year, a year and a half ago, there were huge supply bottlenecks.
Of course, the big suppliers reacted to this and ordered a lot in stock.
Stock that now fills the warehouses and needs to be installed.
They don't have the flexibility to reduce the price too much because, of course, they bought at very high prices." Here, too, a low price is an indicator that a company is quite new on the market and can undercut its competitors .
Buyers should not make any advance payments for solar systems - the consumer advice center also warns
When it comes to making a purchase decision, there is another important note that Dagmar Faltis would like to pass on: “It is unusual in the industry to make advance payments.
And if a company still wants this, then the alarm bells should go off straight away.
And then there has to be a very precise reason why you get involved in it.” However, she generally advises against hiring this company.
The consumer advice center has already become active on this issue after there were several dubious incidents.
Last year, several customers contacted consumer advice centers after making advance payments - whereupon the installation of their solar systems was sometimes incomplete and took months or even a year.
The providers also did not respond to inquiries.
“The contractual situation shows that no fixed delivery/assembly dates have been contractually agreed.
“Consumers often rely on verbal promises, but either set late or no specific deadlines for delivery/assembly,” says the Lower Saxony Consumer Center, describing the cases that were reported to them.
That's why the consumer advice center also advises not to make any advance payments.
“If advance payments have to be made, then agree in writing specific dates for partial payments based on the progress of the service.
The remaining payment should always only be due after a certain period (e.g. 14 days) of trouble-free trial operation of the entire system, i.e. when it is fully usable including the grid connection.”