Chancellor Scholz in New Delhi: Is it getting any better for the European solar industry – or is it the beginning of the end?
Agreements to intensify the cooperation between the two countries India and Germany were signed on behalf of the BSW – Bundesverband Solarwirtschaft e.V. . In our opinion, this is a dangerous fallacy… because this agreement is only about easy access to Germany for specialists from India who install solar systems. I claim that this is the beginning of the end for the German and European solar industry…if the European solar industry does not react immediately!
Because here a Trojan horse is smuggled in! So-called “skilled workers” from India are exported to Germany and trained here by our industry, which is even more expensive. And at the same time, let’s just listen to the speech of Indian Minister Piyush Goyal, who says: “One word that can transform the future of India… is QUALITY“.
But what exactly is behind his speech? This is by no means about fruitful economic cooperation with Europe! Rather, it is about conquering the markets of Europe! Feel free to listen to the entire speech! Because as soon as India is able to deliver high quality, India could very soon conquer the entire European solar market. And then Indian skilled workers who came to Germany (and were trained here at great expense) install Indian solar modules and certainly no modules of German or European origin!
So it seems that Indian consciousness is slowly changing. You have recognized what the customers on the European market want: quality! Currently, the higher quality modules from Germany or France are still very often bought, although these modules are noticeably more expensive. And the reason is very simple: There are currently (still) hardly any alternatives in terms of quality on the market.
What does this mean for the European solar industry?
Some countries in the European Union are currently producing high-quality solar modules. Some actually advertise with the slogan “Made in Europe”, although this is, with all due respect, only a weak attempt to give the impression that this is to be evaluated in the same way as “Made in Germany”. Even in the EU, there are still countries that cannot deliver anywhere near the same quality as “Made in Germany”. (at least that is currently the case). In concrete terms, this means for the solar industry, which is already delivering high quality: Your market is still secured. At least for the next few months… (And as long as the EU is still supplied with the necessary raw materials).
But the supposed safety is deceptive!
Because at the moment it seems that China is withdrawing politically and thus also economically. We are getting more and more requests from India for this. The European market seems to be the target for India to expand. The question that the European solar industry will have to ask itself very soon is: Will European manufacturers of solar modules be pushed out of the European market in the near future?
The answer is: As long as no comparable quality comes from India … certainly not! And the constantly changing laws, at least in Germany (other countries will follow suit), will put the solar industry in Europe into a euphoric coma-like sleep. Because the current rule is that whoever can deliver gets the order. The price currently plays a subordinate role. Nevertheless, everyone should remain vigilant and ask themselves: What do my customers really want?
High quality at a REASONABLE price!
And that is exactly what not a single company that sells solar modules in Europe should forget. For a long time I could read in all sorts of posts and forums how the Chinese were scolded for trying to establish themselves on the market here. And I kept asking myself: what’s the point? Complaining is useless!
Instead of thinking about what can be done concretely in order not to be pushed out of Europe and then taking action – I only see individual futile efforts, which then also come to nothing. There was a recent event in Dubai that promoted the idea of entering into partnerships. Wow, I thought to myself … a great approach! Because I come from marketing and know how powerful cooperation can be! And then I see who’s teamed up with who and I’ve been watching the game for a while. But apart from full-bodied declarations, nothing came of it. So again wasted time and energy, because we are still sitting on thick cushions.
The answer for the manufacturers of solar systems in German-speaking countries is: down with the costs! Invest in the latest technology to stay ahead of the game. This is the only way you can continue to produce at a reasonable price in the future. And as explained in one of my previous blog posts, speed is key. In the solar market too, the fast beats the slow. Because one thing is certain:
If India supply high-quality solar modules in the foreseeable future…
… at a price that beats every European supplier out of the field, the customers will buy there and the European suppliers of solar modules will be pushed out. Membership in any lodges or “good connections” to politics doesn’t help either.
The customer regulates the market. Some will have to experience this very quickly and very painfully. The solar market was already down not so long ago. And even the bigger players in the market narrowly avoided bankruptcy by selling parts of their businesses or being bailed out with funding from the Blackrock Foundation. Of course, back then there was grumbling and the responsibility was pushed onto politics. It’s so easy to delegate responsibility to others. But have you ever thought about what that means? Transferring responsibility to others means transferring power over the well-being of my company to others! And I don’t think that any company would want to place its own weal and woe in the hands of politicians.
The solution is:
Finally do creative marketing! The approach with the cooperation was good and correct, but there is still a lot of potential for implementation. I don’t want to focus on marketing here today, as that would go far beyond the scope of this blog post. Lower your costs! Only if you lower your costs will you be able to compete with foreign providers in the medium term. And above all: NOW is the time to act! To become active with foresight, to recognize possible changes. The change in these times is coming faster and faster. If you only react when India enters our market with good quality at a reasonable price…then you have lost! Well-known brands such as Nokia, Kodak or Schlecker are great examples of the inability to anticipate the changing times!
Minimize your production losses (defective C-modules that you cannot sell)
Lower your repair costs
Minimize production downtime (downtime is the biggest cost factor in your production!)
Reduce the reaction times in your production to changed raw materials, cell technology and surfaces
Reduce the sick leave of your employees
Human like robot talking to artificial intelligence. Concept. 3D illustration
The use of AI in your production solves 4 of the above points
With our tested market-ready KI MO-System” production losses in a small production were reduced by 869,000 €/year.
Repair costs could be reduced with the help of predictive maintenance. (The AI notices the smallest deviations and sounds an alarm. It gives specific information on which machine and where a deviation was produced. This is usually done with a small repair before major damage occurs.)
The times during which production could not be carried out due to standstill have been reduced.
The reaction times to changed raw materials, cells or surfaces are reduced because the AI has collected millions of data and independently calculates and sets the optimal parameters for new surfaces. While the competition is still setting up and testing test productions… get producing again.
The conclusion is
Every entrepreneur, CEO or managing director of a company is responsible for whether and where his company will exist in 5 years. Neither politics, nor competitors from abroad, nor the lack of skilled workers is to blame if a company goes bankrupt. It is always the management of a company alone and solely responsible for it – no one else!
Focus your energy on your actions. Act now immediately! There are also professional coaches who can help you with reducing sick leave. Even if there is a shortage of raw materials, you can open up new procurement opportunities off the beaten track.
And maybe you are at least now finding out about the possibilities of reducing production costs that the use of our AI in your production provides you with. A first conversation costs you nothing – but you get the opportunity to find out more about the results of your production – which will secure your position in the market in the long term, or catapult you into a new league. In 30 minutes we will clarify together whether and how our market-ready AI will help you to expand your market dominance.
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