From boom to trouble
The state of Polish photovoltaic companies: from boom to market collapse
In recent years, photovoltaics in Poland have experienced a real boom. Millions of households have decided to invest in photovoltaic installations. Attracted by promises of lower energy bills, energy independence and environmental protection. Government programs such as My Electricity, Clean Air and Rural Energy, as well as attractive billing systems, have contributed to the industry’s rapid growth. However, by the end of 2022, the photovoltaic market began to decelerate, and companies in the industry faced various challenges.
Changes in regulations and refusals to connect to the grid. From boom to trouble.
The introduction of amendments to the RES Act and changes in prosumer billing regulations have become some of the main factors affecting the health of PV companies. New regulations and refusals to connect to the grid have caused many companies to encounter difficulties in implementing projects. Some of the companies were unable to meet the new requirements, leading to delays and loss of customers.
Higher component prices and availability issues
Another challenge for photovoltaic companies has been rising component prices and problems with component availability. The increase in demand for photovoltaic panels has caused supply constraints, resulting in higher costs and difficulties in project implementation. Companies have had to look for new suppliers and negotiate better terms to remain competitive in the market.
Freezing energy prices and high inflation
Another factor that affected photovoltaic companies was the freeze in energy prices and high inflation. The Solidarity Shield, which was designed to protect consumers from high energy prices, has led to a decline in interest in investing in photovoltaics. Many people have begun to conserve energy to fit within the imposed limits, resulting in less demand for photovoltaic installations.
Market discouragement and unfair contractor practices. From boom to trouble.
In addition, the condition of photovoltaic companies has been affected by market discouragement caused by unfair practices of contractors. The growth in the number of installation companies and aggressive marketing has led to a fierce battle for customers. Unscrupulous contractors often took advances and disappeared, leaving clients without projects. Complaints about unfair practices were often reported to the Office of Competition and Consumer Protection, resulting in fines for some PV companies.
Renewable energy sources in Poland
Despite the difficulties, the development of photovoltaics in Poland continues. Currently, about 1.3 million households have prosumer micro-installations, accounting for the bulk of the country’s installed PV capacity. According to data from the Energy Market Agency, at the end of July 2023, the installed capacity of photovoltaics in Poland was 10.586 GW.
Rapid growth of photovoltaic companies
During the period of photovoltaic development in Poland, many photovoltaic companies were established in a short period of time. The introduction of online courses has enabled builders and roofers to switch careers to become PV installers. At the height of the photovoltaic boom, there were more than 21,000 companies offering photovoltaic installation services. Poland also led the way in the number of solar jobs across the European Union.
Quality Challenges. From boom to trouble.
However, the rapid development of the photovoltaic industry caused many companies to operate without the proper qualifications, which affected the quality of services provided. Many customers complained about the unfair practices of contractors who took advance payments and did not fulfill contracts. It is worth paying attention to the choice of a professional in the case of photovoltaic installations to avoid such problems. Professionals should have adequate training, certification and monitor changes in the industry to ensure quality service.
Fight for customers and negative image of the industry
The fierce battle for customers in the photovoltaic industry has also resulted in a growing negative image of the industry. Aggressive marketing and intrusive telemarketing were common practices. Many people have received calls about installing photovoltaic systems. As a result, there have been numerous articles in the media warning of dishonest vendors and the pitfalls of photovoltaic contracts. Complaints about unfair practices were reported to the Office of Competition and Consumer Protection.
Consequences for the photovoltaic market
The introduction of changes in the way prosumers are billed and the negative image of the PV industry have had a significant impact on the market. Many companies have faced hardship and loss of customers. However, the development of photovoltaics in Poland is still ongoing, and the future prospects are promising. However, it is worth remembering that choosing the right contractor and paying attention to the quality of services are crucial to the success of a photovoltaic investment.
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