Norway's solar power industry faces bankruptcies and layoffs. The Socialist Left Party now wants to rescue the sector through government negotiations.
Solar energy companies struggle with plunging investments. This comes as Norway needs more renewable energy, said Socialist Left politician Lars Haltbrekken.
The current electricity support scheme and Norway's general electricity pricing have slowed solar power development.
Multiple companies have gone bankrupt. Industry leaders like Otovo and Solcellespesialisten face serious challenges.
Otovo has cut nearly half its workforce twice. Solcellespesialisten, once Norway's largest solar provider, has undergone multiple downsizing rounds. The company announced another major layoff this week according to local reports.
The Socialist Left Party proposes a guaranteed minimum price for solar power. This would ensure solar companies receive a set price when selling electricity to the grid.
A minimum price of 50 øre (approximately 5 US cents) would cost about 50 million kroner annually according to government estimates.
For comparison, the government budget allocates 11.5 billion kroner to electricity support and general price measures.
This isn't just about fixing damage from current pricing policies. It's about accelerating solar construction, Haltbrekken stated.
The proposal gains support from the Federation of Norwegian Industries' electro division.
Technical director Andreas Strømsheim Aamodt calls solar support their top budget priority. He says the market situation is extremely critical.
Without clear budget priorities, most companies could disappear before spring, he warned.
Haltbrekken wouldn't reveal how high solar price guarantees rank on their negotiation list.
Initially, they'll demand extra funding for solar in the private market. This includes support for individuals and housing cooperatives installing rooftop panels.
The party will consider whether the proposal should apply to businesses too.
In a parliamentary response, Energy Minister Terje Aasland wrote that minimum prices could increase profitability and stimulate production.
However, he cautioned that guaranteed prices might cause large power volumes hitting the grid simultaneously. This could increase grid strain and raise network costs.
The Socialist Left also wants more support for energy efficiency measures.
They fear Norway's general electricity pricing will reduce energy conservation efforts.
The party hasn't finalized this demand's details. Increased allocations to Enova, a state enterprise supporting household energy upgrades, remains among proposals.
The government plans to cut 1.9 billion kroner from Enova's support budget.
Budget negotiations begin in mid-November.
Norway's green transition faces practical challenges as political promises meet economic realities. The solar industry's struggle highlights the gap between renewable energy ambitions and market conditions.