Germany-based solar project developer solarhybrid AG has filed for the opening of insolvency proceedings in a local court.
Although solarhybrid did not disclose additional details in its bankruptcy announcement, its management noted in a March 7 release that the looming feed-in tariff (FIT) reductions in its home country of Germany would likely have a detrimental effect on the company's financial health.
For instance, the legislative changes gave the company ‘no possibility’ of completing a 150 MW project under development in Neuhardenberg. ‘This would mean a loss of investments made thus far in this project in the amount of approximately 7.5 million euros,’ solarhybrid's board members wrote.
‘Overall, the entire business model of solarhybrid in Germany is called into question, because solarhybrid is currently, without exception, focused on the project development and realization of photovoltaic power plants with a capacity of at least 10 MW,’ the company added.
Last fall, solarhybrid entered discussions with Solar Millennium AG, which began bankruptcy proceedings in February, to potentially acquire Solar Millennium's U.S. project pipeline. The transaction fell through as Solar Millennium's financial health deteriorated.