Siemens to desert Solar energy after closing Solel Energy
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June 21, 2013Siemens to close its last solar shop – Solel Energy
Siemens is now getting out of the solar business, with its decision to shut down Solel Energy. Siemens was in the look out for a 
buyer for Solel Energy, since the last six-seven months. But due to non-availability of a purchaser, it decided to close Solel Energy. Siemens has decided to close Solel by early 2014. Solel Energy used to manufacture components used in solar thermal power stations. Solel Energy has accumulated losses of $1.3 billion and the closure will affect almost 280 employees in Israel.
Siemens which is the world’s largest green company has been facing a slowdown in revenues and profits in recent time as the whole green industry is suffering from overcapacity (wind, LED, solar). Now the company plans to completely get out of solar by selling its solar business. Siemens was facing lower margins and revenues had strategically decided to retreat from solar energy. Siemens was strong in solar thermal energy technology, after it bought Solel Energy. However, the company was not getting any traction or big orders as solar crystalline panel technology stole a huge march through dramatic cost reductions. It also deserted the Desertec project.
Siemens had made a big bang entry into Solar Energy acquiring the leading Israeli company Solel Energy for $418 million. However due to lack of big solar thermal orders and solar thermal technology facing survival questions, the existence of Solel Energy became questionable. It looks difficult for Siemens to get buyer for a technology which has been abandoned by even the pure play companies like Solar Millenium. The Korean chaebols like Samsung, Hyundai and LG have sharply scaled down their solar ambitions as the glut takes a huge toll on profits.
Once a promising new field with strong growth rates, the solar energy industry is in sharp decline in Germany as Chinese manufacturers flood the global market with cheaper panels and components.
Several smaller German companies are struggling to survive the onslaught.
Industrial giant Siemens has already closed down its photovoltaic inverter business and pulled out of theDesertec solar energy project.
Its fellow conglomerate Bosch is looking to sell or close its photovoltaic solar operations after losing 2.4 billion euros since 2008. It partly blames a drop in US energy prices caused by a growing abundance of shale gas.