Solar Industry Faces Insolvencies & Job Losses Amid Subsidy Cuts
Economy / Finance

Solar Industry Faces Insolvencies & Job Losses Amid Subsidy Cuts

The head of Germany’s Federal Association of Solar Crafts is voicing concerns that proposed changes to renewable energy incentives could lead to business failures and job losses within the solar industry.

Peter Knuth stated in an interview with Münchner Merkur that the sector has already experienced a significant number of insolvencies and layoffs and that a further wave of job losses would be detrimental to Germany’s energy transition. “We have worked for years to advance the energy transition and now we are losing employees who have become immersed in the subject. Once these skilled workers leave the industry, it is difficult to regain them” Knuth explained.

A key challenge for companies in the solar sector, according to Knuth, is that ongoing discussions regarding the phasing out of certain subsidies are creating uncertainty among consumers, potentially leading to delays in crucial energy projects. “Many consumers are hesitant, prefer to wait and see how things develop and postpone projects by a year. That is precisely what must not happen” he warned. Knuth is also a co-founder and managing director of the company Enerix.

The concerns stem from a proposal by Economics Minister Katherine Reiche (CDU) to eliminate feed-in tariffs (EEG remuneration) for new, privately-owned solar installations. Industry stakeholders view this as a counterproductive measure. Enerix is planning a protest to highlight the potential threat to jobs posed by Minister Reiche’s statements.