1Komma5Grad Pauses Domestic Solar Panel Production Plans: Cost Issues Dominate
Increase domestic manufacturing of photovoltaic modules by 1.5 degrees - 1Comma5Grad Shifted Domestic Manufacturing Focus to Photovoltaic Modules
Hey there! Here's the lowdown on 1Komma5Grad and their decision to pause plans for domestic solar panel production.
In a recent chat with the German Press Agency, the CEO of 1Komma5Grad, Philipp Schröder, confirmed that plans for a domestic factory have been put on hold indefinitely. Why, you ask? Well, it's all about the costs!
Currently, it's just not feasible to produce solar panels in Germany at a competitive price. The main hurdles include scale, as modules aren't being manufactured in Germany in large quantities to realize significant cost savings, and the higher energy and labor expenses.
Back in October 2023, 1Komma5Grad announced that they'd be building a solar module production facility in Eastern Germany, with plans to start production in 2024. The factory was slated to produce a staggering one gigawatt per year, aiming to reach five gigawatts by 2030.
But, sadly, those plans have hit a snag. So, where are the panels coming from? Good question! 1Komma5Grad obtains polysilicon, used to make solar cells, domestically, but they're actually manufactured in China and sold under their own brand name.
1Komma5Grad is a shining star in Hamburg's startup scene; they're valued at over a billion dollars, and they offer solar panels, energy storage systems, heat pumps, charging stations, and software for buying and selling electricity. They've got a team of around 2,500 people, and in the past year, they raked in an estimated 520 million euros in revenue, up by 15.6% compared to the previous year.
Now, you might be wondering, what's the deal with the cost volatility that's causing these production plans to crumble like a sandcastle at high tide? Let's dive a bit deeper.
Since 2021, prices for solar panels, storage systems, and heat pumps have been on a roller coaster, thanks to rising material and production costs, political regulations, logistics challenges, and market demand fluctuations. This unstable cost environment has given rise to uncertainty surrounding the feasibility and timing of setting up production facilities in Germany.
So, instead of sweating it out on the home front, 1Komma5Grad is focusing on launching advanced solar panels with superior features and guarantees, utilizing German polysilicon to maintain those high environmental and social standards. They're choosing to focus on quality and advanced technology rather than jumping headfirst into domestic manufacturing just yet.
In summary, the decision to halt domestic production plans comes down to economic factors that make it challenging to produce solar panels in Germany at a competitive price. Now, with that said, anything can change, and who knows what the future holds? We'll just have to wait and see!
[1] 1Komma5Grad to launch advanced solar panels with enhanced product features and guarantees, using domestically-sourced polysilicon.
[2] Despite the postponed plans for domestic manufacturing, 1Komma5Grad remains committed to environmental and social standards, as demonstrated by their continued use of German polysilicon in their solar modules.
- To offset the paused domestic manufacturing, 1Komma5Grad plans to launch advanced solar panels with enhanced product features and guarantees, utilizing domestically-sourced polysilicon as a part of their commitment to maintaining high environmental and social standards.
- Amidst the postponed business venture, 1Komma5Grad opts to focus on finance and technology developments, prioritizing the launch of quality solar panels over domestic solar panel manufacturing, due to the current cost volatility and economic challenges in the industry.
