LG has confirmed that it will cease the production of solar panels and officially close its solar business, conceding that competition from China had become too fierce.
The cost of solar panels has largely been falling over recent years, although the Covid-19 pandemic has caused an upswing due to the rising cost of raw materials. This increase is unlikely to be sustained, however, with Chinese firms still putting pressure on other manufacturers by offering low priced panels.
Despite the forces against LG’s solar business, it’s certainly shocking to see the company completely exit from the market. This is especially disappointing considering LG offered some of the most efficient solar panels on the market. However, it’s also clear to see that the margins were getting ever thinner considering the fierce competition coming from China.
It’s expected that LG will completely close its solar panel business by June 30, although it will continue to honour warranties and maintain support for customers who had already invested in the company’s solar panels.
Although LG is exiting its solar panel business, the firm continues to be committed to helping create a low-carbon future. This includes the continued development of energy storage products, as well as decarbonised heat solutions, such as air source heat pumps. The company has also teased other ‘yet-to-be announced advancements’.
