Wegatech has gone under insolvency proceedings in Germany due to a drop in demand
The Cologne District Court has appointed HWD’s Rüdiger Werres as the provisional insolvency administrator
The company will continue to implement projects as the administrator explores restructuring options
German solar PV and heat pump installer Wegatech Greenergy GmbH is yet another name in the country’s solar PV industry to have declared insolvency. Its decision to go into insolvency proceedings follows a ‘collapse’ in demand in the current financial year.
Law firm Heidland Werres Diederichs (HWD) has appointed Rüdiger Werres as the provisional insolvency administrator for the assets of Wegatech Greenergy and its subsidiary Wegatech Handwerk GmbH, following the court order of the Cologne District Court.
According to an HWD statement, covered by local media reports, it sees potential for Wegatech to continue its business operations; hence, the law firm is exploring restructuring options to bring it out of insolvency.
Wegatech will continue to implement its projects. Salaries of the employees are secured till the end of 2024 through pre-financing of the insolvency money.
In March 2024, Wegatech entered a partnership with smart meter supplier Spot my Energy to help it directly install smart meters for its customers when they install their PV systems, thereby cutting down the bureaucratic work that usually follows.
Back then, Wegatech CEO Andreas Durth said the company expects around 1,500 projects to be commissioned in 2024 and the availability of smart meters at the regional metering point operator’s end acts as a bottleneck in the acceptance of installation projects.
This new insolvency adds itself to a growing list of solar PV companies in Germany following the same route. Recently, Adler Smart Solutions cited order delays in EV and PV segments, while ESS Kempfle declared insolvency due to a significant drop in PV component prices, and increasing competition in the market (see Financial Difficulties Force More German PV Companies Into Insolvency).
According to local news portal Der Spiegel, the demand for heat pumps has also gone down due to high electricity prices and uncertainty surrounding the heating law. Because of these reasons, homeowners find it difficult to invest in this equipment.
.png?w=50&fm=png){kind=logo}