German solar sector starting to attract investors

Germany’s solar energy industry can breathe a sigh of relief: Subsidies are set for smaller cuts than expected, and the sector is set for consolidation many say is the crucial next step in its development.

The global electronics group Bosch was first off the mark, announcing the purchase last week of German solar energy equipment producer Ersol.
Bosch is set to spend more than 500 million euros (770 million dollars) for a majority holding in Ersol and could invest up to 1.1 billion if it decides to take full control.

Analysts at the private bank Sal Oppenheim called it “the boldest move so far in what we see as the start of a consolidation process in the solar industry.”

Matthias Fawer, who works at the Swiss bank Sarasin and wrote a study on the sector, had a similar interpretation.

“It is a very positive sign for the the photovoltaic industry that a major company is entering the market,” he told AFP.

AFP