As of: January 30, 2024, 9:56 p.m
By: Lars-Eric Nievelstein
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A possible exodus of solar system manufacturers is imminent.
After Meyer Burger, Solarwatt is now also checking whether production is still worthwhile.
The German solar industry is on the brink.
Berlin – The module manufacturer Solarwatt warns of the end of the German solar industry.
The manufacturer could stop production in just a few months.
“If nothing happens, we have to think about how our production will continue,” said Solarwatt boss Detlef Neuhaus to the
Handelsblatt
.
The manufacturer is currently considering closing the factory.
China's share of solar module imports |
87 percent |
|---|---|
Price collapse for solar systems within the last few months |
50 percent |
New installation of solar systems in Germany (2023) |
1 million |
Solarwatt warns against cheap modules from China
The reason - just like manufacturer Meyer Burger, which had previously announced the closure of its German factories - is the “continuing flood” of cheap modules from China.
European solar manufacturers are increasingly finding themselves in dire straits.
The industry is now all the more clearly demanding support from politicians.
It is unclear whether and when this will come.
Federal Economics Minister Robert Habeck (Greens) has already signaled a willingness to help in Berlin.
However, this is not just about production, but also about development.
According to Neuhaus, this also means “that we in Europe and Germany maintain the ability to conduct research, development and production in the renewable energy sector”.
If there is no sufficient response from politicians, Neuhaus is “convinced that there will be no significant producing solar industry in Europe”.
The majority of solar imports come from China
One problem: A huge proportion of the photovoltaic systems installed come from China.
For 2022, the Federal Statistical Office (Destatis) determined that Chinese models accounted for around 87 percent of all systems imported into Germany.
The value of the imported Chinese products was around 3.1 billion euros.
Cheap products from China are flooding the photovoltaic market.
Europe can no longer find answers.
© IMAGO / MiS
The Netherlands (four percent) and Taiwan (three percent) followed at some distance.
The value of imports of photovoltaic systems in 2022 was more than twice as high as the value of exports of these goods from Germany.
The Wiesbaden authority has identified other European countries such as Austria, the Netherlands and Italy as the most important buyers of German systems.
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China sells 20 percent below production costs
According to Neuhaus, the even bigger problem is the extreme price dumping by Chinese competitors.
“Due to unfair competitive conditions, the existence of the manufacturing industry in Germany and Europe is massively threatened.
And we’re not talking about years, but rather months,” explains Neuhaus in an interview with
Handelsblatt
.
Although the competition from Asia has always sold around 20 to 40 percent below European prices, these suppliers have recently been selling an additional 20 percent below their production costs.
“In the last six months, prices have fallen by 50 percent,” explains the Solarwatt boss.
It is impossible for European manufacturers to keep up.
“These are unfair competition conditions.”
Solar systems are becoming increasingly popular
As the German Solar Industry Association (BSW) announced, solar systems are well received by customers.
Last year, companies installed more than a million new solar systems to generate electricity or heat - a record number.
Data from the Federal Network Agency supports this;
On the roofs and open spaces of Germany, operators put solar power systems into operation with a peak output of around 14 gigawatts.
The industry association expected demand to remain high in 2024.
BSW Solar blamed the rising electricity prices and the attractive funding conditions for this.
“We expect a sustained solar boom in 2024.
As the solar industry, we will continue to make our contribution to climate protection and meet the government’s goals for photovoltaics,” said BSW Managing Director Carsten Körnig.