Solarwatt France has filed for court-ordered restructuring with the Lyon commercial court after declaring insolvency in early October. The company, which specialises in solar solutions for private homes, had already initiated an alert procedure to signal cash flow difficulties. Management aims to maintain operations during the preparation of a recovery plan, as the collapse in demand undermines the company’s business model.
A tariff reform weighing on small-scale installations
The revision of the S21 scheme in March reduced financial incentives for photovoltaic systems with a capacity of 9 kWc or less. The elimination of full-feed-in tariffs and the reduction in the feed-in rate for surplus energy have extended payback periods, prompting households to delay investment. A sharp increase in connection requests preceded the reform’s implementation, followed by a marked slowdown in orders.
This segment, which is at the core of Solarwatt France’s market, is particularly sensitive to regulatory changes. Premium products manufactured in Europe now face increased competition from lower-cost Asian alternatives.
A high-end positioning under pressure
The parent company, Solarwatt GmbH, based in Dresden, produces glass-glass solar modules and storage solutions for the residential market. Its French subsidiary, made up of around a dozen employees, relies on a network of roughly 150 installer partners. Falling volumes and downward pricing pressure are undermining the profitability of its offering.
Amid global overcapacity and factory closures across Europe, the situation highlights the difficulties faced by manufacturers tied to European value chains in maintaining profit margins. The collapse of the residential solar market in Europe is affecting the entire sector.
Impact on customers and installers
Filing for court-ordered restructuring suspends prior debts while temporarily ensuring operational continuity. Installers, who depend on the availability of equipment and after-sales service, must adapt to the current situation. Homeowners with existing systems remain concerned about maintenance and support.
The growing presence of Asian manufacturers in France is reshaping the market balance. This trend could lead the group to revise its local structure or adjust the scope of its subsidiary.
A strategic reorientation under consideration
Solarwatt may strengthen its position in countries with more stable regulatory frameworks or focus on storage and energy management solutions, which are less reliant on public subsidies. The evolution of French support mechanisms will remain a key factor for future prospects in the residential solar market.
