German PV specialist Solen – formerly known as Payom Solar – has filed for insolvency at a district court in Meppen, Germany, after it was unable to meet its debt obligations.
The company said its business will continue in an orderly manner and it will continue to meet client requests.
“For the operative units, there are first requests from investors” to be evaluated by the insolvency administrator, Solen CEO Albert Kupfer said.
Solen is the latest German PV company to succumb to its financial difficulties. Late Wednesday, former giant SolarWorld AG announced it expects a record loss after tax of up to €550m ($717m).
German solar manufacturers in recent years haven’t been able to compete with a flood of ever-cheaper modules from Asia. Some producers, such as SolarWorld, claim far-eastern companies to have dumped modules at below-market prices and are unfairly propped up by the Chinese government.
Solen said its financial troubles had been triggered by significant cuts to German PV support, the enormous fall in prices and high interest payments it was unable to meet – despite profits at its US and UK units.
A delay in a planned sale in PV installations in Italy worsened the situation, Solen claims.