Spanish solar energy company Soltec will focus exclusively on solar tracker solutions and close all of its other business divisions following significant financial losses in the first half of 2024.
The company will “abandon” its business in “less profitable sectors” like construction and asset management to focus on solar tracker production. It said its tracker business comprised almost 80% of its revenues in the first half of 2024; €183 million (US$195.5 million) of the €236.5 million (US$252.6 million) total.
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Soltec said up to June 2024 it had supplied 18.7 GW of solar trackers to over 400 projects across 17 countries.
In its newfound focus on trackers, Soltec said it would “continue to strengthen its commitment to innovation and promote technologies that minimise environmental impact…[with] products such as trackers for floating and agricultural applications.”
PV Tech has previously reported on Soltec products for floating solar applications and trackers for steep terrain deployments.
Alongside the focus on technology, it said it would increase its focus on specific markets – the US, primarily, as well as Spain, Italy, Brazil and Chile which it called “geographies with the highest growth and profitability”.
These measures are part of the company’s efforts to strengthen its financial position after reporting losses of €126 million in the first half of 2024.
In its long-delayed report, the company said its energy sector lost €62.8 million (US$67.2 million), €27 million of which came from the impairment of two utility-scale PV projects in Brazil.
Its industrial activities also endured losses of €50 million (US$53.5 million), a “significant portion” of which came from its project construction business, “a business line that the company has chosen to exit due to its suboptimal profit margins and considerable operational risk.”
The company added: “This sector has been draining profitability and cash generation from the solar tracker business in recent years.”
Trackers are becoming increasingly prevalent in utility-scale solar projects. Depending on conditions, they can offer greater plant efficiency and protection from weather damage.
