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It could all be so simple. The federal government, state governments and even local authorities are outdoing each other with subsidy programmes to encourage Germans to cover their roofs with solar panels. Income tax exemption, VAT savings, EEG 2023, the KfW 270 programme. The federal government is pushing hard to do its bit to make Germany a little darker when viewed from above. Solar panels instead of Frankfurt pans – black instead of red.
Meanwhile, the domestic solar industry is fighting for survival. Meyer Burger, Solarwatt, Heckert Solar – photovoltaic manufacturers sounded the alarm weeks ago and questioned Germany's position as a production location in their dealings with politicians. The Chemnitz-based photovoltaic manufacturer Heckert Solar, for example, is one of the oldest and largest remaining producers in the country. „... nevertheless, it is clear that production in Germany can only continue as long as it remains profitable in the long term,“ says company boss Benjamin Trinkerl. The industry association European Solar Manufacturing Council (ESMC) has even approached EU Commission President Ursula von der Leyen directly. Solar manufacturers have issued urgent warnings about the end of their production in Europe, and in Germany in particular. The proposal was that buyers of European systems would receive a so-called „resilience bonus,“ which would subsidise the decision to purchase European systems in terms of acquisition or operation. But the cry of the dying industrial patients went unheard. This means that hundreds of jobs will also become obsolete, e.g. in Dresden, Chemnitz and Freiberg. At the latter location alone, 500 jobs are at stake.
Over many years, China has built up a low-cost production chain for photovoltaic modules. Currently, around 87 per cent of all solar systems imported into Germany come from the Middle Kingdom. China accounts for 80 per cent of global photovoltaic production. How are the Chinese managing to do what the Europeans cannot?
Is it government subsidies for manufacturers? Comparatively low energy costs thanks to coal-fired power generation, which is considered „evil“ here? Questionable production conditions for employees? We don't know. We only know the facts: European manufacturers can no longer compete with the dumping prices for solar modules made in China. That is a fact. China is targeting one industry after another. The pattern is always the same: dumping prices stifle domestic industry. This creates a Chinese monopoly. And so Europe is sliding further and further into dependency. The next „victim“ will be the electric car. Everyone can see it. No one is doing anything about it.
But back to the solar industry. That is precisely the crux of the matter: thanks to subsidy programmes, demand for solar modules in this country is higher than ever. However, demand can no longer be met in Europe because China's workbench is unbeatable in terms of price. Thus, Germany's costly and chaotic energy transition will claim its next victim: the solar industry. And with every solar module installed on German roofs, a completely different problem is growing: the „amplitudes of fluctuating electricity“ are becoming higher and higher in this country.
At night and when the sky is overcast, even a large number of solar modules cannot produce any electricity, and fossil fuel-fired power stations that can be ramped up quickly have to cover the base load. When the sun is shining, however, more and more solar modules produce more and more electricity, which increasingly exceeds domestic electricity demand. This results in negative electricity prices, or the surplus electricity has to be dumped abroad and, in the worst case, money has to be paid for it. Energy transition paradox – made in Germany.
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