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PV bankruptcy: Solar company from Leipheim is insolvent - ESS Kempfle filed for bankruptcy under self-administration on August 13th


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Published on: August 19, 2024 / Update from: August 19, 2024 - Author: Konrad Wolfenstein

PV bankruptcy: Solar company from Leipheim is insolvent

PV bankruptcy: Solar company from Leipheim is insolvent – ​​Image: Xpert.Digital

🌞💼😢 ESS Kempfle: Insolvency of the solar provider despite an emerging market 🏠💡📉

📉💰📉 Dramatic decline in sales and staff cuts 🌇

ESS Kempfle, a solar company based in Leipheim, had to file for self-administration bankruptcy on August 13th. The company website said that prices for solar systems have fallen by a quarter in the past year, while the number of providers has quadrupled. CEO Wolfgang Kempfle explains: “Just a year ago, the photovoltaics market in Germany looked significantly better.”

The company had originally expected a turnover of 50 million euros from the installation of 1,500 systems this year. Due to the current situation, this forecast has changed drastically. The company is now planning a significantly reduced turnover of just 20 million euros.

ESS Kempfle has already taken significant measures to overcome the financial challenges. The workforce was reduced from 200 to 140 full-time positions. Despite the difficulties, the salaries of the 140 employees are secured through the support of the Federal Employment Agency.

The company, which has been operating primarily in southern Germany for 15 years, is now faced with the challenge of restructuring itself and securing its future.

📈☀️💼 Difficulties in the photovoltaic market 📉

Just a year ago, the German photovoltaics market was seen in a more promising light. ESS Kempfle had ambitious goals with a turnover of 50 million euros and the installation of 1,500 photovoltaic systems. But the general conditions have now changed significantly. The aggressive drop in prices for solar modules, home storage systems and wall boxes has put many providers under pressure. A main reason for the price drop is the aggressive pricing policy of Chinese manufacturers. In addition, there is strong competition from other trades such as roofers, electricians and scaffolders who also offer photovoltaic systems.

Political uncertainties have further complicated the situation. There were several regulatory changes in 2023 that unsettled the market. First of all, VAT on photovoltaic systems for end customers was abolished at the beginning of the year. Then the early heating law came to a halt after it was blocked by the FDP within the traffic light government. A further setback came in November when the CDU filed a lawsuit before the Federal Constitutional Court to prevent 60 billion euros from Covid aid from being used for the transformation into a climate-neutral industrial society. These permanent changes and legal uncertainties meant that many potential investors no longer saw any legal certainty or planning security.

Due to the changed market conditions, Wolfgang Kempfle had to drastically reduce his sales expectations for the year. Only 20 million euros are expected, which corresponds to around 600 to 700 installed photovoltaic systems.

🏢🛠️🌍 New measures and hope for stability 💪

However, the company's fixed costs, including leasing rates for vehicles and tools as well as office technology and office space, could not be adjusted so quickly. Therefore, self-administration restructuring is now necessary. The medium-sized company had already started saving personnel costs in the spring and reduced its workforce by 60 full-time positions to a total of 140.

ESS Kempfle operates four locations in Leipheim, Augsburg, Heidenheim and Giengen. The majority of new customers come through recommendations, the rest are acquired through social media activities, consumer trade fairs, lectures and customer events. In 2022, the success rate was one in four, meaning that one order came out of four inquiries. In 2023 the rate worsened to one in six; it is currently one in five.

👥📊📅 Future prospects and opportunities 🔄☀️

Despite the adversities, ESS Kempfle sees itself as a strong company that is willing to overcome this crisis. With a capable and reduced team and the support of potential new investors, their goal is to stabilize and get back on track for growth. The market for renewable energies, especially photovoltaics, remains a promising industry in which innovative and flexible companies can take advantage of their opportunities even in difficult times.

📣 Similar topics

  • 📉 Filed for insolvency at ESS Kempfle
  • 🏭 Sales expected to decline by 60%
  • 🌍 15 years of success in southern Germany
  • 👷‍♂️ Employee numbers reduced by 30%
  • 🏷️ Prices for solar systems have fallen
  • ⚠️ Political uncertainties in 2023 complicate the situation
  • 🔧 Competitive pressure from other trades
  • 📈 Strategy for stabilization and growth
  • 🏢 Four locations in focus
  • 💡 Future outlook for ESS Kempfle

#️⃣ Hashtags: #Insolvency #Solar Energy #Market Development #Price War #Future Strategy

 

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Source:

https://www.ess-kempfle.de/news/selbstverwaltete-sanierung/
https://www.photovoltaik.eu/installation/wolfgang-kempfle-wir-machen-interessante-nischen-aus
https://www.augsburger - Allgemeine.de/guenzburg/leipheim-stellenwandel-bei-ess-kempfle-solar-firma-geraet-schieflage-102965650
https://www.merkur.de/wirtschaft/naechste-firma-ist-insolvent-deutsche-solarindustrie- ringst-ums-uesurleben-zr-93246829.html