German solar on the brink
The German solar industry is on the brink of collapse. The market is being flooded by less expensive solar panels from China. There are calls for state aid or even the introduction of punitive tariffs on Chinese products.
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NewsTranscript
00:00 [music]
00:02 There is a fierce battle for market share in the solar industry worldwide.
00:06 Government subsidies are critical.
00:08 [music]
00:11 "Is it ok?"
00:13 Tony Nikisch used to work as a baker.
00:16 After an intensive training course,
00:18 he changed careers and now installs solar power systems.
00:21 The pay is great, and there's no shortage of work.
00:25 Solar panels are cheaper than they've been in a long time,
00:28 and now that numerous tax hurdles have been eliminated,
00:31 such as value-added tax,
00:33 it makes sense to always include them in new house plans.
00:36 [music]
00:41 "People want renewable energy because electricity prices are skyrocketing.
00:47 They want renewable energy and solar, a business that's booming.
00:51 People are buying it, so of course it's going to continue."
00:54 [music]
00:56 Germany has seen more solar systems installed in the past year than ever before.
01:01 Solar energy already supplies around 12% of the country's electricity needs.
01:06 And while consumers are benefiting from the boom, there is a downside.
01:10 Around 90% of solar panels are imported from China.
01:14 Does that bother consumers?
01:16 [music]
01:17 "The main thing is that it looks nice, and it has to work."
01:23 If 90% of solar panels come from China,
01:26 it's important to know how durable the products are.
01:29 Tests done by TUV Rheinland indicate that China's products
01:32 meet the EU's minimum technical requirements.
01:35 [music]
01:37 "It makes no difference whether the panels originate from a country in the Far East
01:42 or from the European or American continent."
01:45 [music]
01:48 Meyerberger is one of the few solar panel manufacturers in Germany
01:52 that has survived the tough competition from Chinese suppliers.
01:56 The production manager attributes that to the latest technology in the factory.
02:00 However, it's not the latest technology that counts in the industry,
02:04 but who offers the most state subsidies.
02:07 And that's China.
02:09 [music]
02:11 "They can't produce more cheaply in Asia or in any other countries
02:16 than they can here in this factory.
02:19 The subsidies artificially distort the market,
02:22 which means that buying from us doesn't end up being as economical."
02:26 [music]
02:31 Meyerberger is now feeling the consequences
02:33 and wants to close the German factory with 500 employees.
02:37 They are also building a new production facility in the US
02:40 with the help of a US government subsidy of 30%.
02:44 The bottom line? That means even less domestic panel production.
02:48 Enerix in Regensburg only installs solar panels made in Germany.
02:52 The company wants to move away from Chinese products.
02:55 It believes the installation of domestic products
02:57 should even be subsidized by the state.
03:00 "If we want to have production sites in Germany long term,
03:04 we also have to sell German products.
03:07 Being purely a trading country is very short-term thinking,
03:10 and making an energy transition solely based on foreign products
03:14 is very short-sighted in my view."
03:18 What can be done?
03:20 On the one hand there's China,
03:22 with its huge production facilities and price dumping.
03:25 On the other, the US is tempting companies with tax breaks.
03:29 "Trade barriers or increasing tariffs and similar isolationist measures
03:34 will not help us to build internationally competitive factories.
03:38 Instead, we need political support for the startup phase
03:41 of internationally competitive and much larger solar factories."
03:46 Without tax money from the EU or Berlin,
03:48 there will obviously be no restart for the European and German solar industry.
03:53 The race for solar energy is entering the next round worldwide.
03:57 [Music]