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

📉💰📉 Dramatic drop in sales and staff reductions 🌇

ESS Kempfle, a solar energy company based in Leipheim, filed for insolvency under self-administration on August 13. The company website stated that prices for solar panels fell by a quarter last year, while the number of suppliers quadrupled. CEO Wolfgang Kempfle explained: "Just a year ago, the photovoltaic market in Germany looked significantly better."

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

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

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

📈☀️💼 Difficulties in the photovoltaic market 📉

Just a year ago, the German photovoltaic market seemed much more promising. ESS Kempfle had ambitious goals, aiming for a turnover of €50 million and the installation of 1,500 photovoltaic systems. However, the market conditions have since changed considerably. The aggressive price decline for solar modules, home storage systems, and wallboxes has put many suppliers under pressure. A major reason for this price drop is the aggressive pricing strategy 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 further exacerbated the situation. Several regulatory changes in 2023 unsettled the market. First, the value-added tax (VAT) on photovoltaic systems for end customers was abolished at the beginning of the year. Then, the accelerated heating law stalled after being blocked by the FDP within the governing coalition. In November, another setback occurred when the CDU, through a lawsuit before the Federal Constitutional Court, prevented €60 billion from COVID-19 relief funds from being used for the transformation to a climate-neutral industrial society. These constant changes and legal uncertainties led many potential investors to feel a lack of legal and planning certainty.

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

🏢🛠️🌍 New measures and hope for stability 💪

The company's fixed costs, including lease payments for vehicles and tools, as well as office equipment and office space, could not be adjusted so quickly. Therefore, self-administered restructuring is now necessary. The medium-sized company had already begun cutting personnel costs in the spring, reducing 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 referrals, with the remainder acquired through social media activities, consumer trade fairs, presentations, and customer events. In 2022, the success rate was one to four, meaning that one order resulted from every four inquiries. This rate worsened to one to six in 2023 and currently stands at one to five.

👥📊📅 Future prospects and opportunities 🔄☀️

Despite the challenges, ESS Kempfle sees itself as a strong company determined to overcome this crisis. With a capable, streamlined team and the support of potential new investors, its goal is to stabilize and return to a growth trajectory. The renewable energy market, particularly photovoltaics, remains a promising sector where innovative and flexible companies can seize opportunities even in difficult times.

📣 Similar topics

• 📉 ESS Kempfle files for insolvency
• 🏭 Revenue decline of 60% expected
• 🌍 15 years of success in Southern Germany
• 👷‍♂️ Employee numbers reduced by 30%
• 🏷️ Prices for solar panels have dropped
• ⚠️ Political uncertainties in 2023 exacerbate the situation
• 🔧 Competitive pressure from other trades
• 📈 Strategy for stabilization and growth
• 🏢 Four locations in focus
• 💡 Future outlook for ESS Kempfle

#️⃣ Hashtags: #Insolvency #SolarEnergy #MarketDevelopment #PriceWar #FutureStrategy

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