Germany’s Adler Smart Solutions has gone under insolvency proceedings under Reimer
It is being restructured now as order delays in both EV as well as PV segments impacted its business
Previously, in August 2024 another German PV installer ESS Kempfle also filed for self-administered insolvency
ESS Kempfle cited the significant price decline in PV components and increasing competition as the reasons
The German solar PV market continues to operate on shaky grounds as more companies announce insolvency and business restructuring in the face of growing financial strain and increased competition in the market. Adler Smart Solutions GmbH is the latest in this list.
Adler, a solar PV systems installer and charging infrastructure specialist for electric vehicles (EV) for the commercial segment, filed for insolvency at the Hamburg District Court on September 27, 2024.
The management blamed significant delays in important projects in the EV charging infrastructure business as the primary reason for this decision. In the PV segment, high-revenue projects were postponed by customers at short notice.
“Since Adler Smart Solutions GmbH had reserved capacity for this, this led to significant financial bottlenecks. Rising costs and a more restrictive financing situation further exacerbated the economic situation,” stated the management.
Operational since 2011, this B2B company now has Jennie Best from Reimer Law Firm as its insolvency administrator. Some 150 employees at the company will continue to receive their salaries through pre-financing of insolvency benefits as business operations will continue as usual.
Best believes there are strong chances of restructuring as several investor inquiries have already been received.
Earlier in August 2024, another solar company ESS Kempfle filed for self-administered bankruptcy as it attributed the reason to the drop in prices for solar systems by a quarter in the past year, thanks to overcapacity in the market.
The company’s Managing Director Wolfgang Kempfle said, “Just a year ago, the photovoltaic market in Germany looked much better.” Hence, it aimed for sales of €50 million in 2024, with an installation target of 1,500 PV systems.
However, the management pointed to the massive competition from roofers, electricians, and even scaffolding builders that have PV systems in their portfolio, leading to significant competition in the market. It added that since the fixed costs such as leasing rates for vehicles and tools, office space and technology cannot be reduced as quickly, it needs insolvency support.
What is supposedly good for consumers is paid for by specialist companies with a drop in sales, explained Kempfle. The company has now lowered its 2024 target to around 600 to 700 system installations, and a turnover of €20 million.
Liquidity challenges for Fellensiek and a drop in sales due to price decline for solar PV components prompted Bosswerk to enter insolvency in Germany earlier this year (see Germany’s Fellensiek Projektmanagement Files For Insolvency).
Even the solar PV manufacturing group Meyer Burger couldn’t withstand Chinese competition with the latter’s low-priced modules available all across Europe. It also blames the lack of government support in terms of policy and finances as it announced restructuring recently (see Meyer Burger Achieved CHF 48.7 Million Sales During H1 2024).