PVTIME – Wegatech Greenergy GmbH, a German provider of sustainable energy solutions such as heat pumps and photovoltaic systems, filed for insolvency on 17 October due to a sharp drop in market demand this year.
picture: wegatech web
In February, Wegatech received a capital injection of €3.5 million from Gothaer Versicherung. This capital was intended to strengthen the partnership and secure growth. The fact that this support was still not sufficient indicates deep-seated structural problems within the company. The insolvency shows that the company was unable to respond adequately to the challenges of the market, despite significant investment.
In March this year, Wegatech also entered into a partnership with smart meter provider Spot my Energy to offer customers a more convenient service for the installation of PV systems. At the time, Andreas Durth, the company’s CEO, predicted that around 1,500 projects would be completed by 2024.
Despite the insolvency dilemma, Wegatech will continue to implement its projects under construction to ensure that the interests of its customers are not compromised. Meanwhile, court-appointed interim administrator Heidland Werres Diederichs (HWD) said Wegatech has the potential to continue operations and is actively exploring various restructuring options to achieve a turnaround. Wegatech, which employs around 200 people, has secured its payroll until the end of 2024 through pre-financing from the insolvency fund.
This development underlines the ongoing challenges in the energy sector, exacerbated by inflation, supply shortages and falling margins. Declining demand for renewable energy solutions has put many installers under pressure.
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