Third German photovoltaic firm goes insolvent as govt cuts subsidies

21 March 2012 16:31  [Source: ICIS news]

LONDON (ICIS)--Photovoltaic firm Solarhybrid has filed for insolvency, becoming the third producer in Germany's solar industry to go insolvent amid government subsidy cuts and overcapacities, officials said on Wednesday.

Solarhybrid, which develops and builds photovoltaic plants, had warned earlier that “unpredictable drastic proposals” by Germany’s government to cut subsidies to the solar sector were calling its entire business model into question.

Subsidies, in the form of so-called feed-in tariffs, have been a main driver in the rapid growth of Germany’s solar industry.

In addition to Solarhybrid, photovoltaic firms Solar Millennium and Solon recently also filed for insolvency while other producers continue to struggle.

Earlier, Solarhybrid had agreed to acquire Solar Millennium’s US business, subject to financial conditions.

However, the insolvency administrator of Solar Millennium said on Wednesday that even without Solarhybrid he was hopeful of being able to sell Solar Millennium’s US business.

Meanwhile, Microsol, a United Arab Emirates-based solar cell firm, this month acquired large parts of Solon and relaunched the company as Solon Energy.

In related industry news, ICIS reported on Wednesday that the US imposed an anti-subsidy duty on photovoltaic products imported from China.

A number of chemical producers have been looking to photovoltaics as a growth market for their products and chemicals.

Check out Doris de Guzman’s Green Chemicals Blog for views on sustainability issues

By: Stefan Baumgarten
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