Germany’s solar panel industry, once a leader, is getting squeezed – The Economic Times

Before China came to dominate the solar panel industry, Germany led the way. It was the world’s largest producer of solar panels, with several startups clustered in the former East Germany, until about a decade ago when China ramped up production and undercut just about everyone on price.
Germany has been here before. In the early 2000s, a combination of government incentives, scientific research and cutting-edge technology helped make its solar industry the world’s leading producer of photovoltaic panels and technology.
Then manufacturers from abroad, especially China, caught on and sold solar panels at prices well below what the Germans were offering. The impact was swift and brutal. Companies such as Q-Cells, Solon and SolarWorld declared bankruptcy and disappeared. But some businesses held on by focusing on assembling, installing and integrating solar panels in comprehensive green power systems.

Simone Tagliapietra, a senior fellow at Bruegel, a Brussels-based think tank, said he agreed that new tariffs would not make sense. To achieve a secure supply of panels, as well as support the green transition and economic growth, he suggested that Europe instead support development of new solar technologies.

“Go for the new generation of solar panels, products that are still at the forefront of innovation,” Tagliapietra said. “If we cannot beat the Chinese on quantity, we need to try to beat them on quality.”
Solarwatt, based in the former East Germany, said it might also have to close one of its solar panel plants. But making panels is only one part of the company; it also creates systems that connect the power generated by solar panels to wall boxes that can charge cars and heat pumps to warm homes.

“The future of our company is not a risk, even if production had to be shut down,” the company said in a statement, adding that other divisions could absorb the roughly 120 people whose jobs would be at stake.

Meyer Burger’s decision to shut its plant in Freiberg has left as many as 500 jobs in limbo. The company’s CEO, Erfurt, said the factory’s future depended on political leaders in Berlin. “But we don’t see a bridge being built from the government at the moment,” he said.

At the same time, the company is contemplating other alternatives, he said, adding that “one option is simply to dismantle and rebuild it in U.S.”

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