European solar manufacturers are facing significant challenges, with some even announcing closures and shifting focus to the US. Secretary-General of the European Solar Manufacturing Council (ESMC), Lindahl, previously warned that EU solar manufacturers were “on the brink of collapse.” He noted that if the current situation persisted, manufacturers would either be forced into bankruptcy or shift resources to the US.
Indeed, according to incomplete statistics from DataBM.com, since the second half of last year, at least nearly 20 European PV companies have reported financial difficulties or even bankruptcy, with four already exiting the region.
On November 23, 2023, Singapore-based PV firm REC Silicon announced plans to close two polysilicon factories in Northern Europe due to high electricity prices. The closure of its Norwegian factory will result in losses of up to NOK 335 million (approx. RMB 223 million) for REC.
Meanwhile, Meyer Burger, after failing to secure German government subsidies, plans to close its largest solar module production site in Freiberg, Germany, and establish a factory in the US. The European factory closed in March 2024, while Meyer Burger’s US factory began production in June.
In December 2023, Austria’s 28-year-old PV component manufacturer, Energetica Industries GmbH, filed for bankruptcy again due to inability to meet current payment obligations. In January 2024, Dutch PV manufacturer Exasun also announced it had filed for bankruptcy.
Moreover, even PV companies still operating are facing difficulties. German solar component supplier SMA Solar Technology disclosed its sales figures for the first three quarters of this year, showing a 20.76% decrease compared to the same period last year. Due to weak market demand, SMA revised its full-year sales forecast down to between €1.45 billion and €1.5 billion.
SMA also announced a restructuring plan in September, which will result in up to 1,100 job losses globally by the end of 2025, with two-thirds of these in Germany.
The European PV industry is struggling both internally and externally, facing competition from China and the US. Weak market demand is the primary reason for the difficulties faced by European PV companies. Despite a significant drop in installation costs, growth rates have slowed.
The European Photovoltaic Industry Association (SolarPower Europe) predicts that the EU’s new solar installations will reach 65.5GW in 2024, slightly higher than the 2023 record of 62.8GW, but the growth rate has fallen from 53% in 2023 to 4% in 2024, a 92% decrease in solar energy growth over the past year.
SolarPower Europe’s CEO, Walburga Hemetsberger, warned that policymakers and system operators should view this year’s report as a “yellow card,” as the slowdown in solar deployment means slower progress towards energy security, competitiveness, and climate goals.
The report attributes the weakness of the European market to the temporary resolution of the gas crisis, low electrification rates, and inflexibility in energy systems.
