German solar sector in distress as consumer boom fizzles
Germany’s residential solar panel industry is facing “a lot of distress” after a downturn in consumer demand triggered a wave of bankruptcies and lay-offs in Europe’s biggest and most important market for the sector.
Many companies distributing and installing rooftop panels have gone bust, been taken over or forced to adopt changes in strategy.
While the bust and resulting glut of panels have led to a sharp fall in prices for consumers, industry figures warn that they have hit sentiment among investors and are threatening to damage a sector that is crucial to meeting Europe’s ambitious climate targets.
Dries Acke, deputy chief executive of industry lobby group SolarPower Europe, described the situation as “not a positive trend”.
“To some extent this is consolidation after a few exceptional years,” he said. But he added: “You cannot have a green transition with red numbers. The sector needs to be profitable.”
