The German solar industry anticipates a rise in company insolvencies as the rate of new solar panel installations slows. Peter Knuth, Chairman of the German Federal Association of Solar Crafts (BDSH), representing installation companies, told the business magazine “Capital” that a market correction already underway will likely continue in the coming months, with firms unable to swiftly adapt to current market realities facing the greatest risk.
Following a surge in demand for solar installations in 2022, driven by energy price volatility following the conflict in Ukraine, the sector has recently experienced a noticeable cooling. Data from the Federal Network Agency indicates that approximately 7.1 gigawatts of new solar capacity came online in the first half of 2025 – almost 15 percent less than the previous year, with a significant decline in rooftop installations for private homeowners.
Last year, solar energy saw a record expansion of over 16 gigawatts through rooftop and large-scale solar park installations. However, the BDSH does not foresee an immediate stabilization of the situation, with Mr. Knuth stating that 2025 may prove to be a challenging year for the industry. Many companies are therefore looking to diversify into other areas, particularly heat pump installations, as relying solely on photovoltaic system sales is no longer sufficient.