Solon suffering from lack of sun

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

The continued weak demand for both residential and commercial rooftop installations in conjunction with the lack of project finance available for utility-scale solar plants are forcing major module manufacturer Solon to undertake a further round of restructuring. Solon plans divestments, a reduction in its temporary workforce, and part-time work among other cost-saving measures. Solon also said it would review a potential spin-off of the Austrian production company, Solon Hilber Technologie.

Key to the restructuring efforts will be a renewed focus on module sales in Germany, Italy and the U.S., deemphasizing sales efforts in other regions. A new business arm ‘Rooftops’ is to be established that will service both German and international demand for large-scale commercial rooftop installations.

In the U.S. Solon said that it would continue to work on large-scale utility projects with the likes of PG&E but expects the pipeline of those new contracts to only begin to convert to revenue from 2010 onwards.

Having drastically cut module production in Q109, Solon will continue to better match supply with demand. Various workforce measures are being undertaken that include the reduction of temporary staff as well as the introduction of short-time work at several facilities. The company said both management and a large number of workers will have to take waivers on variable salary components to generate cost savings of €15 million, mostly effective in 2010.

The ongoing module price erosion caused by a massive global overcapacity has resulted in writedowns of inventories and sale of inventories below manufacturing costs. This writedown amounted to a negative €30 million in revenue for the company in the second quarter.

Although business overall was picking up and there were signs that the financial constraints on projects was easing, Solon is still being forced to keep production levels significantly below capacity levels. Due to the reduced demand, production output was reduced to 39MWp in 1H09 (prior-year period: 84 MWp). This accounts for a 54% decline YonY. However, product was up from the first quarter to 21MW. Annual nominal production capacity remained at 450MWp. 

Total module production reached 176MW in 2008, which could mean that without a significant increase in shipments in the second half of the year, production will be lower in 2009 and could fall back to levels set in 2006.

Solon did not publish an updated forecast of revenue and profit expectations for 2009.

 

 

28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.
19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.
20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.

Read Next

September 23, 2021
A project that bids to combine up to 20GW of solar PV with the world’s largest energy storage battery and a 4,200km-long subsea power cable has moved a step forward after Indonesian authorities greenlit its proposed transmission cable route.
September 23, 2021
US national residential and C&I solar plant performance assessment company Omnidian has completed a US$33 million Series B raise.
September 23, 2021
US developer Clearway Energy Group has signed a virtual power purchase agreement (VPPA) with Toyota in North America to supply the company with 80MW of power, accounting for 8% of the company’s regional operations
PV Tech Premium
September 23, 2021
Backed by a new heterojunction module factory in Florida and the expansion of its production plant in Minnesota, solar manufacturer Heliene is looking to take advantage of US policy support to meet increasing demand for American-made PV equipment. Jules Scully discusses the company’s growth plans with CEO Martin Pochtaruk.
September 23, 2021
Arizonan utility Salt River Project (SRP) and renewables company Clēnera have signed a 20-year power purchase agreement (PPA) for the CO Bar Solar project that is expected to deliver between 440-480MW of power
September 23, 2021
Russian wholesale electricity market administrator JSC ATS has allocated 775MW of solar PV in the country’s eighth auction round for largescale renewables, which had an average price of ₽5.18/kWh (US$0.071/kWh)

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021