1Komma5Grad Delays Homegrown Solar Manufacturing: What's Behind the Decision?
Domestic production of PV modules shifts by 1.5 degrees - Shift in Local Manufacturing of Solar Panels by Comma5Grad
Let's dive into the surprising news from the Hamburg-based energy unicorn, 1Komma5Grad. Phillip Schröder, their CEO, spilled the beans about the indefinite postponement of plans to set up a local factory for solar PV modules during a chat with the German Press Agency in Hamburg.
So, what's the reason for this sudden change of heart? Schröder isn't mincing words: Currently, it ain't affordable to manufacture photovoltaic modules domestically at competitive prices. This boils down to production scale not providing enough cost advantages and the hefty burden of energy and labor costs in Germany.
Recall that back in October 2023, 1Komma5Grad had boldly declared its intentions to establish a solar module manufacturing facility in Eastern Germany, with a capacity of smashing one gigawatt annually from 2024, aiming to reach a whopping five gigawatts by 2030.
1Komma5Grad sources its polysilicon (the key ingredient in solar cells production) domestically, but the modules themselves are produced in China and sold under their brand name.
1Komma5Grad is no stranger to the limelight. It's hailed as Hamburg's only "unicorn" – a startup valued at a cool $1 billion or more. This whiz-kid company, established in 2021, offers a range of goodies from solar modules and energy storage systems to heat pumps, and EV charging stations, with added software for buying, selling, and managing electricity.
Employing a team of around 2,500 folks, 1Komma5Grad demonstrated a preliminary turnover of approximately 520 million euros last year, a 15.6% increase compared to the previous year.
- Hamburg
- Germany
- German Press Agency
- The German Press Agency had a discussion with Philip Schröder, CEO of 1Komma5Grad, based in Hamburg, Germany.
- Despite earlier intentions to establish a solar module manufacturing facility in Germany, 1Komma5Grad has postponed these plans indefinitely, citing unfavorable cost structures.
- Schröder stated that producing photovoltaic modules domestically at competitive prices isn't feasible due to high energy and labor costs.
- 1Komma5Grad sources its polysilicon domestically but currently manufactures the modules in China and sells them under its brand name.
- The lack of affordability in local manufacturing potentially affects the vocational training of installers within the solar PV industry, which is crucial for future growth and advancement of energy technology in Germany.
