LG have decided to shutting down their solar panel business particularly to focus on other aspects of the renewable energy market. The Board of Directors note variety of contributing factors including intense price competition and the rising cost of solar panel for this shocking decision.
LG, known for their highest quality panels and higher price range, launched their new NeON H+ series in the early 2022 and the shocking declaration just followed in.
The company proclaimed “LG will maintain support for existing customers for a period of time” yet the unspecified time frame made clients concerned especially those who purchased recently and wondering about their 25 years product and performance warranty.
However, the better aspect of the announcement includes LG will still continue to product Energy Storage Systems and potentially expanding their product range into other aspects of the renewable energy market.
Despite LGs plan to exit of the solar panel manufacturing business, “LG said it remains committed to renewables and plans to “leverage its renewable energy expertise to unlock value for its customers”.
“The company will concentrate on growth sectors and plug into a new era of sustainability through rapidly evolving products and solutions including energy storage systems, energy management solutions and other yet-to-be-announced advancements,” LG Management added.
Further, LG’s announcement comes just days, “after one of Australia’s largest residential and commercial solar PV retailers and installers revealed it will exit the market, blaming low margins and “once-in-a-generation” disruptions to the supply chain brought on by the Covid-19 pandemic for the decision.”
By 30 June, 2022, LG is expecting to entirely exit from the solar panel market.
Not only LG, Western Australia-headquartered Infinite Energy, wholly owned by Japanese industrial giant Sumitomo Corporation, plans to stop selling rooftop PV and battery systems as well. They quote, “maintaining a successful business model in a highly saturated and rapidly changing market is no longer sustainable.”