Norsun, the last solar cell manufacturer in Norway, has officially filed for bankruptcy, marking a critically important blow to the local solar industry. The company, which has struggled to compete against low-cost Chinese solar panels, ceased production earlier this summer and faced ongoing financial difficulties, including an inability to pay employee salaries. With only 60 employees remaining from a peak of 230,the announcement comes just days before the scheduled payroll on December 20. CEO Erik Løkke-Øwre expressed disappointment over the company’s inability to secure contracts in Europe, Turkey, and Southeast Asia, as the market continues to be dominated by cheaper alternatives from China. this closure follows a series of setbacks in the Norwegian solar sector, including the bankruptcy of norwegian crystals and the shutdown of REC Solar’s facilities.
In a significant shift in the solar energy market, Norsun, a Norwegian solar panel manufacturer, is pivoting its focus to the United States after losing its largest customer in Europe due to the U.S. Inflation Reduction Act, which incentivizes green industries. This move comes as the company plans to establish a factory in the U.S. that is five times larger than its facility in Årdal, Norway. The decision has led to layoffs in Årdal, where many employees have expressed concerns about the future of their jobs. norsun aims to finalize investment decisions by early next year, hoping to leverage the unique expertise from its Norwegian operations to support its U.S. expansion.Norsun AS has officially declared bankruptcy, marking a significant shift in Norway’s solar industry landscape. The company’s decision comes amid a challenging market characterized by oversupply and insufficient regulatory support from both the Norwegian government and the EU. Despite efforts to establish a foothold in Norway, Norsun’s owners have pivoted their focus to the united States, where they see greater opportunities for growth. This development highlights the ongoing struggles faced by solar manufacturers in Europe, as they navigate a competitive environment without protective tariffs or unified purchasing regulations. For more details, visit PV Magazine.
Time.news Interview: The Future of Solar Manufacturing in Norway and Beyond
Editor: Today we have with us Dr. Lars Petterson, an expert in renewable energy trends, to discuss the recent bankruptcy of Norsun, Norway’s last solar cell manufacturer, and the implications for the solar industry both locally and globally. Dr. Petterson, thanks for joining us.
Dr. Petterson: Thank you for having me. It’s a critical time for the solar industry, both in Norway and worldwide.
editor: Norsun’s bankruptcy has sent shockwaves through the Norwegian solar sector. What do you see as the primary reasons for this failure?
Dr. Petterson: Norsun struggled primarily due to intense price competition from low-cost Chinese solar panels. The company faced significant financial difficulties,including an inability to secure contracts in Europe and beyond. This underlines a broader trend in the European solar market, where many manufacturers face similar challenges due to an oversupply and insufficient regulatory support from local governments [2[2[2[2].
Editor: It’s unfortunate to see such a decline. You mentioned regulatory challenges. How do you believe local and EU regulations have impacted Norsun and other solar manufacturers?
Dr. Petterson: The lack of protective tariffs and unified purchasing regulations has made it incredibly difficult for European manufacturers to compete. Without these supports,companies like Norsun have had to operate in a marketplace largely dominated by cheaper imports. The recent shutdown of other notable manufacturers, such as REC Solar, illustrates this systemic issue [1[1[1[1].
Editor: Norsun has announced a pivot towards the U.S.market. What do you think of this strategy?
Dr. Petterson: Shifting focus to the U.S. could provide Norsun a lifeline.The U.S. Inflation Reduction Act incentivizes investments in green energy and manufacturing, wich could create a more favorable business environment for Norsun. Their plan to establish a factory in Oklahoma, projected to be significantly larger than their former facility in Norway, suggests thay see a potential to thrive under these new conditions [3[3[3[3].
Editor: This transition must be challenging for their existing workforce. What implications do you think this has for employees in Norway?
Dr. Petterson: The layoffs in Årdal are indeed concerning. It reflects a painful reality for many skilled workers in the renewable energy sector. The transition could lead to significant job losses and anxiety among employees who now face an uncertain future. In the long run, retraining and reskilling initiatives will be crucial to help these workers adapt to new opportunities as the industry evolves [2[2[2[2].
Editor: Looking ahead,what advice would you give to aspiring solar manufacturers in Europe?
Dr. Petterson: It’s essential for new entrants in the solar market to advocate for stronger government supports, including tariffs that protect against foreign competition, and for unified regulatory frameworks across the EU. Additionally, exploring partnerships and funding opportunities in regions with strong growth potential, like the U.S., could be beneficial.
Editor: Thank you, Dr. Petterson, for your insights on this pressing matter. It will be captivating to see how Norsun’s shift will influence the global solar market in the coming years.
Dr. Petterson: absolutely, and thank you for having me. The solar industry is at a crossroads, and it will be critical to watch how these developments unfold.