Or is it an opportunity?

Navigating Tough Waters in 2024 the solar industry in Germany and across Europe is going through one of its most challenging phases. Once seen as a booming sector with endless potential, 2024 has brought numerous setbacks, bankruptcies, and restructurings. Many companies that were once hailed as rising stars in the renewable energy space have either filed for bankruptcy, gone out of business, or sold their assets for next to nothing. It is a tough landscape for solar businesses, and this year is proving to be a survival game for many.

A Wave of Bankruptcies: What’s Happening?

Several prominent solar companies have fallen victim to market turbulence. For example, SolarNative filed for insolvency right after the Intersolar event. Despite their efforts to find investors or buyers, their search was unsuccessful. The company, which specialized in microinverters, couldn’t secure the necessary funding within the legal deadlines, resulting in the unfortunate step of filing for insolvency.

I have to say that the product of SolarNative was very promising but as far as I know it still did not work, even when some online stores stocked it and were selling in full swing to the customers & the full certification was still on the way. I wonder, how did it even go for sale without certification being in place?

Similarly, Bosswerk, a well-known player in the solar industry, also filed for insolvency due to a sharp decline in revenue. The company attributed its downfall to the significant price drop in solar technology. Bosswerk, which had been in business since 2010, even maintained an online platform called GreenAkku for selling photovoltaic systems and home storage units. However, efficiency measures were not implemented quickly enough to save the company from financial trouble.

WeDoSolar did try to work together with the online portal of GreenAkku but implemintation of our product range took really long time. Of course after hearing the news of a filed insolvency, it became very clear why.

Powerfox (power42 GmbH): Entered restructuring under preliminary insolvency proceedings after a technical failure in its software services impacted sales. Powerfox was known for its smart meter solutions and B2C/B2B energy services.

A Market in Freefall

These are not isolated incidents. The entire industry is feeling the impact of market instability. Prices for solar technology have dropped so drastically that even established companies find it difficult to stay afloat. While companies like 1Komma5° push optimistic stories about zero-cost electricity and the wonders of artificial intelligence (AI), seasoned industry experts remain skeptical. As Hermann Schrag points out in his recent article about 1Komma5°, AI is often touted as a cure-all, but the reality is far more complicated. Negative electricity prices only occur during rare times of overproduction, meaning that much of the "zero-cost" narrative does not hold water.

Survival: A Matter of Adaptation

Amidst this turbulence, WeDoSolar is still standing strong —3.5 years into its journey, and while we are still floating, it’s clear that the path forward is anything but easy. We didn’t get as much funding as many other startups in the solar field, but we’ve been able to hold our ground through lean operations and strategic planning. This year is all about survival, and many in the solar space are simply trying to keep their heads above water.

Is It Time for Smart Investments?

While the solar industry in Germany and Europe is experiencing one of its toughest periods in recent history, there is still room for optimism and opportunity. As companies go bankrupt or face insolvency, this downturn presents a unique chance for investors to step in and gain significant market share. In times of crisis, the strongest companies tend to emerge from the rubble, and this is an ideal moment to invest in the future of clean energy.

The collapse of several solar companies in 2024 has left a vacuum in the market, meaning fewer players are competing for what remains a highly valuable industry. The key for investors is to focus on lean operations, companies with small cash burn, and those that have streamlined their processes. These businesses are more likely to survive the current crisis and thrive when the market stabilizes. Companies that can demonstrate strong fundamentals—low overhead, smart use of technology, and minimal waste—are the ones best positioned to capture market share as others exit the field.

The industry will likely continue to face turbulence in 2025, but this is also the moment when European finances are expected to step in and provide support. Governments and financial institutions in Europe are beginning to recognize the importance of saving the solar industry, not only to meet climate goals but to prevent foreign takeovers. With the right financial backing, Europe can retain control over the future of its energy infrastructure.

There’s no denying that Chinese companies are already seeing the massive opportunity that lies in the European solar industry. Their strategy is clear: they act fast, invest strategically, and are willing to buy up brands that have taken decades to build for a fraction of their value. If European investors don’t act quickly, we will likely see a wave of acquisitions where Chinese companies take over the market by acquiring well-established European brands. The key to Chinese success is their ability to think strategically and move quickly. They see the value in acquiring existing solar brands, as it gives them an entry point into the European market with an established customer base. In contrast, Europe often lacks this sense of urgency when it comes to investing in the future. To compete, European investors need to adopt a more forward-thinking approach, recognize the long-term potential of solar, and invest in the brands that will define the industry in the next decade.

As I prepare to go out to raise our A round of funding shortly for WeDoSolar, I do wish for more European investors to step in, which did not happen in the first rounds of investment for us.

The Bottom Line

The current collapse in the solar industry is not the end—it’s a clearing out of weaker players and an opportunity for savvy investors to position themselves for future growth. As European financing comes into play and the industry stabilizes, the brands that survive this turbulent time will be stronger than ever. Those who invest now in lean, efficient companies will be the ones reaping the rewards when the market picks up again.

In this climate, only the top brands will survive, but they will have an unprecedented opportunity to split the market among fewer competitors. The time to act is now before foreign investors, particularly from China, swoop in and dominate the European solar space. With strategic investments, Europe can not only protect its energy independence but also take back leadership in the solar revolution.