Meyer Burger in crisis How Swiss solar companies are holding their own against China
The Swiss solar cell manufacturer Meyer Burger is in a deep crisis. A bad omen for the Swiss solar industry? Experts and company representatives describe it as fit and competitive.
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- The Swiss solar company Meyer Burger is in a deep crisis.
- Other Swiss companies are successfully producing photovoltaic panels. With customized solutions adapted to individual buildings, they are outperforming the competition from China.
- However, the market for individual solar systems has also cooled down. Other challenges include the shortage of skilled workers and uncertain public funding.
The federal government and cantons are doing all they can to promote the expansion of solar energy, installation companies have full order books and the number of new solar installations is breaking records. Despite this, the Swiss solar panel manufacturer Meyer Burger is in such a deep crisis that its shares are no longer valued by Goldman Sachs and have been described as "uninvestable" by Zürcher Kantonalbank.
As the leader of the Swiss solar industry, is Meyer Burger also leading the way for its decline? In fact, it is difficult to imagine how Swiss manufacturing companies can hold their own against cheap modules from China.
David Stickelberger, Deputy Managing Director of the industry association Swissolar, names two "major module producers" that manufacture in Switzerland: the companies 3S and Megasol. "Both are doing well. 3S even massively increased its production capacity at the beginning of the year," he notes.
Swiss company holds its own
Daniel Sägesser, a member of Megasol's management board, answers blue News' questions: "Our extremely high innovation rate ensures that we are always two to three steps ahead of our competitors."
Megasol has its own production line in China. This mainly supplies standard modules, explains Sägesser. PV panels with a cumulative output of 700 megawatts can be produced there each year.
In Switzerland, Megasol produces modules in Deitingen, Solothurn - 400 megawatts per year. However, these are special solutions, some with individual shapes and colors, which can be integrated into roofs and other building areas and are therefore adapted to each individual building with its special requirements.
Niche product: individual PV modules
Most Swiss solar manufacturers operate in this niche, confirms Léonore Hälg from the Swiss Energy Foundation: "They mainly produce solar tiles, solar folding roofs, innovative suspensions for façade systems and customized modules with adaptable shapes and colors."
The French-speaking Swiss company Freesuns, which specializes in individual solar tiles, also operates in this segment. Its sales manager Patrick Imholz explains: "Our niche is roofs with complicated geometries on which you can't simply install large systems."
As a niche within a niche, so to speak, Freesuns specializes in listed buildings, where a solar roof must change the appearance as little as possible. They could supply modules that look like the classic plain tiles, says Imholz, or recreate a slate roof that generates solar power. The solar modules not only generate electricity, but also keep the roof watertight.
As Freesuns also has its modules manufactured in China, but specifically for the respective construction project, the company even benefits from the low prices. The end product is admittedly more expensive than a standard system screwed onto the roof. The company's customers are prepared to pay this extra price for the sake of aesthetics, says Imholz. Freesuns is in the process of expanding from French-speaking Switzerland to the rest of Switzerland, he says, giving an indication of how business is going.
When will China enter the niche?
None of the interviewees believe that China will also enter the niche of individual solar modules. Hälg argues: "These are not mass-produced goods that can be manufactured in large quantities in a uniform size and shape and transported to Europe."
Stickelberger adds: "Proximity to the customer is very important because of color sampling and other things. Our manufacturers are also close to the relevant research institutes in Switzerland, such as ETH Lausanne and various universities of applied sciences."
However, the market for individual solar solutions has also cooled down. Imholz confirms: "The last two years have been very good. The blackout forecasts after the Ukraine invasion and the electricity prices have helped us. Now demand has dropped to a reasonable level."
Stickelberger sees the shortage of skilled workers as an obstacle to growth in the Swiss solar industry. The current 10,000 or so full-time positions in the solar industry need to be doubled in order to achieve the energy transition within the set timeframe.
Swiss politics has more influence than China
The decisive factor is how the public sector promotes solar expansion in the future, emphasizes Imholz from Freesuns. "There is still interest in solar systems. How many people actually have one installed is a question of price and the available subsidies or funding, which are crucial for the profitability of homeowners."
Daniel Sägesser from Megasol is convinced that it is still possible to produce PV modules in Switzerland for the European market and therefore in competition with Chinese manufacturers - "as long as we manage to set ourselves apart from the global market through innovation."
Customers are prepared to pay a fair price for innovation with added value. In return, however, Switzerland must take care of its research location. And last but not least, the Swiss solar industry needs a strong domestic market.