A commentary by Klaus Bastian
In 2026, Germany is witnessing a wave of insolvencies within the solar and wind power sectors. Since September, companies including Enerparc in Hamburg, Energiekonzepte Deutschland in Leipzig, and parts of Next2Sun in Saarland have been affected. The wind power developer SOWITEC, based in Baden-Württemberg, has also filed for insolvency. Funding gaps, price pressures, and uncertain project revenues are putting both companies and jobs at risk. At the same time, the state continues to support the expansion of renewable energy with billions of euros in subsidies. These insolvencies therefore demonstrate how little state-guaranteed support reveals about the actual economic viability of an industry.
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Government subsidies are no substitute for a sound economic foundation
For more than two decades, Germany’s energy transition (Energiewende) has relied on government support mechanisms. Feed-in tariffs and market premiums guarantee investors revenue that the open electricity market does not always provide. Without this safety net, many projects would hardly be economically viable. Nevertheless, even large companies are now running into financial difficulties.
With over 500 solar parks, Enerparc ranks among Europe’s major project developers. Yet, the company was forced to file for insolvency at the beginning of September. In October, several entities belonging to Energiekonzepte Deutschland—employing around 400 people—followed suit. Similarly, Next2Sun failed to secure sufficient committed capital for two of its subsidiaries. While operations are intended to continue in some capacity, their future depends on successful restructuring.
Insolvencies are now reaching the wind power sector as well
The crisis is not limited to photovoltaic companies. SOWITEC, a wind power developer based in Sonnenbühl, has accumulated debts of approximately 60 million euros. The insolvency administrator is now seeking buyers for numerous wind farm projects, which have a planned total capacity of around 32 gigawatts. Although the energy transition requires significant expansion, the company has been unable to remain economically viable.
A particularly critical issue is the discrepancy between political planning and corporate reality. The state sets expansion targets and creates investment incentives through subsidy schemes; however, this is not enough to ensure the economic stability of all market participants. Furthermore, companies face high financing costs, lengthy permitting processes, and international competition. State-generated demand does not, in itself, guarantee profits or long-term, secure jobs.
The solar and wind power sectors can undermine their own revenue
A fundamental problem arises from the fact that power generation depends on the weather. When the sun shines brightly, numerous solar installations feed electricity into the grid simultaneously, causing market prices to drop precisely during the hours of peak production. A similar effect occurs with wind turbines during periods of high wind. Consequently, the addition of new capacity can weaken the revenue base for existing installations.
This effect is exacerbated by a lack of energy storage or flexible consumers. At times, electricity market prices even fall below zero. Meanwhile, ensuring a reliable power supply requires additional investment in electrical grids, backup power plants, and storage systems. These costs must be factored into the overall economic assessment, even though they are not fully reflected in the generation costs of individual facilities. Therefore, low production costs alone do not guarantee an affordable and reliable electricity supply.
Germany funds the expansion—while China benefits from the production
While Germany invests billions in expanding its capacity, a growing share of the essential components comes from China. This applies to solar modules, battery cells, and inverters. Chinese manufacturers are also intensifying international competition in other energy technologies. As a result, German producers are losing market share, even though domestic demand is being supported by government policy.
This trend has long since had tangible industrial consequences. Solar glass production in Tschernitz has been lost for good. Production facilities belonging to the insolvent solar manufacturer Meyer Burger have also been sold off. Consequently, manufacturing capacity and industrial value creation are disappearing from Germany. State-subsidized expansion, therefore, does not automatically create a competitive domestic industry.
Permanent Subsidies Are No Proof of Competitiveness
Not every wind or solar power plant requires government subsidies; some projects are already able to refinance themselves through private power purchase agreements. Nevertheless, support under the Renewable Energy Sources Act (EEG) remains of significant importance for a large portion of the capacity expansion in Germany. For this very reason, economic viability—independent of state-guaranteed revenue—must take center stage.
After decades of receiving support, an industry should increasingly be able to stand on its own two feet. While recent insolvencies do not prove that all renewable energy sources are unprofitable, they do highlight the limitations of a business model that relies heavily on political frameworks and secured revenue streams. As long as this dependency persists, taxpayers and electricity consumers will continue to bear a substantial share of the financial burden. An expansion that remains permanently dependent on subsidies is no evidence of an economically successful energy transition.
Author: Klaus Bastian – Blackout News
Sources: Energiekonzepte Deutschland (06.10.26) – Next2Sun (05.10.26) – Handelsblatt (02.10.26) – SWR (30.09.26) – InsoTicker (14.09.26)