In Germany, one of Europe’s largest solar panel factories faces Chinese competition

The Meyer Burger factory in Freiburg, near Dresden, has temporarily stopped its activity but the shutdown may be permanent.

At the Mayer Berger solar panel production plant in Freiburg, near Dresden in eastern Germany, all that can be heard is the hum of some machines and the hiss of ventilation equipment. A few days ago, 5,000 solar panels were being manufactured every day in a huge workshop spanning over 300 meters. But the factory, which was presented as the company of the future when it opened three years ago, had to stop its activity.

Faced with Chinese competition that has driven down prices, the German solar industry is suffering and the Mayer Berger group has announced a loss of 300 million euros for the year 2023. The group is organizing an extraordinary general meeting on Monday 18 March. For the moment, the shutdown of the Freiburg factory, Europe’s largest factory in the region, is temporary but could become permanent.

“Before, machines worked 24 hours a day, seven days a week”, says Max Lange, one of the 500 employees. In front of it, stored on carts, are the last solar panels produced before the factory closes, waiting to be shipped. “When we see that the machines have stopped and we are no longer making anything, it seems strange. We all hoped it would continue. When we are forced to stop due to external circumstances, it is a hard blow.”

A central issue of subsidy

For over a year, China has been flooding the European market with its solar panels. Products are sold three to four times cheaper than German manufacturers. “It’s unfair competition. It’s not a game of equalsCondolences to production director Ronald Muller. It is unfair because we have to bear all the cost of producing solar modules while in other countries it is subsidized by the state. Here we must respect European standards and laws. Our machines are three years old. This is the latest technology. It is really a waste of money.”

The German manufacturer is now planning to strengthen its business in the United States, where conditions are more favorable thanks to generous subsidies given to the solar industry from 2022. But Wolfram Günther, Saxony’s regional energy minister, hopes for more help from the company. Government to save company: “Across Europe, we are seeing an explosion of solar panel installations. So destroy our own national industry to be about 100. % dependent on China, this is not responsible. We have already experienced this with Russia and gas and we see where it takes us. It is not only the solar industry in Germany that is at risk, but the solar industry in Europe is at risk. We must act very quickly.”

If no public aid is announced by the end of the week, the Freiburg factory must close its doors permanently. Less than three years after its opening to much fanfare.