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China sells German solar manufacturers – start-ups take over production

2024-02-28T11:04:21.736Z

Highlights: China sells German solar manufacturers – start-ups take over production. China accounts for 80 percent of all photovoltaic production worldwide. The solar industry is reeling from the flood of Chinese products. The government is also pumping a lot of money into the sector, and reports of forced labor have been making the rounds recently. The companies agree that there has to be some reaction from some punitive politics. However, it is not clear what it will look like in India, where there has not been punitive politics yet.



As of: February 28, 2024, 11:56 a.m

By: Lars-Eric Nievelstein

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The solar industry is under enormous pressure.

Classic manufacturers are withdrawing from Germany.

Several start-ups are taking up the fight.

Dresden – Meyer Burger, Heckert Solar, Solarwatt.

Three large solar manufacturers have announced within the last few months that they want to reduce their production in Germany.

In the case of Meyer Burger, a move to the USA is even imminent.

Now several start-ups from the solar industry have plans to go into production themselves.

Sunmaxx plans production growth

The most recent case concerns Sunmaxx, a company from Dresden.

In contrast to a few other players who are more active in rental and sales, Sunmaxx already produces solar modules.

“So far there is a production line for 120,000 solar modules with an electrical capacity of 50 megawatts, which corresponds to the needs of 5,000 single-family homes per year,” the Frankfurter Allgemeine Zeitung quoted Wilhelm Stein, the managing director of Sunmaxx.

Solar panels mounted on a house roof.

The solar industry is under enormous pressure.

Classic manufacturers are withdrawing from Germany.

Sunwatt, on the other hand, wants to expand production.

© IMAGO / Bernd Leitner

Now Sunmaxx wants to further ramp up production.

Initially it will increase to 2,000 modules per week;

two dozen employees put it together.

Sunmaxx plans to increase its workforce to 80 by the end of the year.

At the location in Ottendorf-Okrilla near Dresden there is enough space for the production of modules with a capacity of up to 500 megawatts.

In the event of further expansion, Stein explains, the company would like to look for a location nearby.

The solar industry is reeling from the flood of Chinese products

The fundamental problem for German manufacturers is still China.

Over many years, the country has built an unbeatable production chain for photovoltaics.

87 percent of all solar systems imported into Germany come from China, and the Middle Kingdom accounts for 80 percent of all photovoltaic production worldwide.

The cheap devices flooded the European market and put local manufacturers under enormous pressure.

What exactly made China so strong is not entirely clear.

On the one hand, as

Forbes

reported , cheap coal is a huge advantage - ironically, China needs it in large quantities to produce solar systems.

The government is also pumping a lot of money into the sector, and reports of forced labor have been making the rounds recently.

The

Time

network argued in a similar direction;

A large part of Chinese photovoltaic production is said to take place in regions inhabited by Uyghurs.

Uighurs are the population group most affected by forced labor, according to media reports.

Beijing had denied this several times.

“We get in through innovation” – This is how Sunmaxx stands out

Now the question arises: Wouldn't Sunmaxx simply be affected by the same problems as Meyer Burger and Solarwatt when it tries to ramp up its solar production?

No, stated Managing Director Stein.

Because there are significant differences in the product.

“The core problem is that they have a MeToo product,” said Stein, referring to the manufacturers who are now withdrawing.

Their products would not be sufficiently different from Chinese ones.

Things are different at Sunmaxx;

The group produces modules that produce heat as well as electricity.

According to its own information, Sunmaxx has a development lead of twelve to 18 months over competitors.

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“We come in through innovation,” explained Stein.

“Our product is only available from us, so we don’t have to demand any import duties.” Nevertheless, Stein has nothing against government support.

In order to maintain its lead, Sunmaxx must continue to invest in development.

“Putting money into companies that are not competitive on the global market makes little sense.

It would make sense to support companies that have a competitive advantage, because then we can get back into the value chain.”

Solar industry hopes for support

This government support had caused another source of conflict within the solar industry.

The solar companies agree that there has to be some reaction from politics.

However, it is not yet clear what it will look like.

In India there have been punitive tariffs on Chinese modules for a long time because the exact same problem had caused Indian manufacturers to falter.

Companies like Enpal and 1KOMMA5° spoke out against such a measure.

Given that they source many modules from China and rent or sell them here, this is no surprise.

So-called resilience bonuses are already being discussed.

The explanation: Customers who buy European solar systems receive discounts.

Enpal had advocated for resilience tenders, as stipulated in the EU's Net Zero Industry Act.

A decision on the actual measures is still pending.

Enpal also plans production in Germany

In addition to Sunmaxx, Enpal also announced that it wanted to start production in Germany.

There is currently a plan to take over the plant that Meyer Burger wants to give up.

“As the largest solar provider in Germany, we are ready to participate in building a diversified European solar industry.

This transformation must now be initiated quickly in accordance with politics,” said Mario Kohl, CEO and founder of Enpal, in a company announcement.

Enpal wants to provide further information about this later today, Wednesday.

Source: merkur

All news articles on 2024-02-28

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