Despite generating about 5% of electricity by solar power, many German solar companies are going insolvent. This is expected, not surprising, Philippe Welter said. Using solar power might have brought a revolution in technology, but it does have side-effects.
There are several reasons why German solar companies are going bankrupt. It’s a fact that the first photovoltaic was commercialised in the United States. After a while, the Japanese entered the market. They had the best technology and knew how to provide quality products. As a result of Japanese solar companies’ uprising, the United States solar companies had to face challenges. Europeans got a handful of benefits for the first years of the new millennium due to the so-called feed-in-tariffs. During that time, many companies grew speedily and gained market share from the Japanese.
At present, the situation is entirely different as the future big solar markets are concentrated in Asia, where enormous energy is required to feed a vast population. Countries like China have built their solar industry. One significant advantage is its low labour costs and modern production facilities.