# German home solar power firm sees bright future as demand soars
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-12
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Home Solar Power Systems Demand Soars in Germany
Meta Description: Discover how Solarwatt's high-end photovoltaic rooftop systems and storage batteries can help homeowners save money and reduce their environmental impact.
URL: https://financedigest.com/german-home-solar-power-firm-sees-bright-future-as-demand-soarshtml

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By Vera Eckert and Tom Käckenhoff

FRANKFURT/DUESSELDORF (Reuters) – Soaring demand for home solar power systems in Germany could boost revenues at Solarwatt by more than 50% this year to 500 million euros ($538 million) and lift them to 1 billion euros in 2025, its chief executive told Reuters.

“Growth is strong and healthy,” Detlef Neuhaus said in an interview, adding profitability should be reached this year.

By installing solar panels, batteries and heat pumps, home owners are seeking to cut their energy bills after huge [price](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4") hikes last year when Russia cut fossil fuel exports to the West.

We are a life-long [supplier to people who want to become](https://www.financedigest.com/volkswagen-to-invest-in-mines-in-bid-to-become-global-battery-supplier.html "Volkswagen to invest in mines in bid to become global battery supplier") self-reliant on renewable energy,” said Neuhaus.

Solarwatt [provides high-end photovoltaic rooftop systems that can be combined with its storage batteries and energy management](https://www.financedigest.com/newly-launched-quintessential-to-provide-prestige-living-management-platform-for-prs.html "Newly launched Quintessential to provide ‘prestige living’ management platform for PRS") devices, or those from other suppliers.

As such, the [company hopes to reduce its vulnerability to cheaper Asian rivals that have brought down some other German](https://www.financedigest.com/around-40-of-german-companies-expect-output-decline-in-2023-iw-institute.html "Around 40% of German companies expect output decline in 2023 – IW institute") solar firms in the past decade.

Solarwatt’s sales in 2022 totalled 330 [million euros](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car"), more than double the 160 million of 2021.

Turnover of solar systems at the Dresden-based company is [expected to rise](https://www.financedigest.com/german-industrial-orders-rise-more-than-expected-in-february.html "German industrial orders rise more than expected in February") to 100,000 this year, from 66,000 in 2022 and 32,000 in 2021.

Apart from saving money, homeowners want to reduce their impact on the environment, not just in how they power and heat their homes, but how they [run their electric cars](https://www.financedigest.com/4-things-to-do-if-you-run-into-problems-with-your-leased-car.html "4 Things to Do if You Run Into Problems With Your Leased Car"), Neuhaus said.

That is logical, given [home solar production costs](https://www.financedigest.com/finance-teams-have-been-left-in-the-dark-on-the-real-cost-of-working-from-home.html "Finance teams have been left in the dark on the real cost of working from home") 10 to 12 cents per kilowatt hour (kWh) and buying-in from the utilities costs 45 cents,” he said.

One challenge, though, is shortages of parts and labour.

There are still difficulties with [supply chains](https://www.financedigest.com/how-to-bring-immediacy-back-to-the-supply-chain-with-faster-payments.html "How to Bring Immediacy Back to the Supply Chain With Faster Payments") and installation capacities,” Neuhaus said.

Also, customers wanting an entire solar-based value chain with panels, battery, [heat pump](https://www.financedigest.com/cutting-business-costs-pros-of-using-commercial-heat-pumps-in-2016.html "Cutting business costs: Pros of using commercial heat pumps in 2016"), and digital management, may have to spend a few tens of thousands of euros before they are able to throw out their gas boiler.

Solarwatt is 98%-owned by billionaire BMW shareholder Stefan Quandt.

The company, which operates in a handful of other European markets, [plans to raise staff numbers to 940 this year](https://www.financedigest.com/3-factors-to-plan-for-in-2017-a-year-like-none-other.html "3 Factors to Plan for in 2017, A Year Like None Other") from 810 in 2022 and 600 in 2021.

($1 = 0.9288 euros)

(Reporting by Vera Eckert and Tom Kaeckenhoff; Editing by Paul Carrel and Mark Potter)


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