France Solar, a Brumath (Bas-Rhin)-based company specializing in photovoltaic panel installation, announced a restructuring plan on Wednesday.
This plan involves the closure of its residential division, resulting in the elimination of 149 positions.
Challenges in the Residential Market
In a statement, the company revealed “a reorganization project aimed at concentrating its activities on the commercial market,” necessitating the cessation of operations in the residential market and the subsequent job cuts.
The residential market is facing “major challenges,” according to the company, which currently employs 275 people.
Inflation, Rising Interest Rates, and Increased Competition
France Solar specifically points to “inflation and rising interest rates” since 2022, which “have reduced households’ capacity to invest in photovoltaic installations.” Additionally, “new low-cost entrants” have “intensified” competition in the market.
The law of July 24, 2020, imposing strict regulations on telemarketing, has also increased “customer acquisition costs, making this market less and less viable for our organization,” the company explained.
Efforts to Adapt Prove Unsuccessful
Despite the company’s “efforts” to adapt, “sales to individuals have continued to decline, leading to significant losses.”
Conversely, the commercial market offers “significant growth potential, particularly in the agricultural sector” and for photovoltaic car park shades.
Commitment to Supporting Affected Employees
“We are fully aware that this project will affect the lives of our employees,” France Solar acknowledged. The company pledged to “listen to each person affected by the job cuts” and to seek, “with the administrative authorities, support solutions,” primarily focusing on internal redeployment opportunities.
France Solar’s Expansion Since 2009
France Solar was established in 2009 in Brumath. Since then, it has expanded with branches in Bourgogne-Franche-Comté, Bordeaux, Rennes, and a subsidiary in Switzerland.