Menlo Electric, a solar panel wholesaler based in Poland, has surged ahead to become Europe’s fastest-growing company, according to this year’s rankings. The company’s rapid growth is attributed to a strong demand for solar products made in China, not just in Europe but also in regions like the Middle East and Africa.
From 2020 to 2023, Menlo saw a remarkable compound growth of 830.8%, with nearly €151 million in revenue by the end of the last year. The company’s expansion was particularly notable during the COVID-19 pandemic and following the surge in energy costs after Russia’s invasion of Ukraine, prompting more households and businesses to turn to solar power installations.
However, like many in the industry, Menlo is facing challenges due to an oversupply in the market. Bartosz Majewski, the founder and CEO, predicts that the company will experience another year of stagnant revenues in 2025 due to falling prices. He explains, “There is a huge issue of overcapacity and oversupply in the market, even though global demand is healthy.”
China has long been a leader in solar technology, supported by generous government subsidies and lower manufacturing costs. In response, countries such as the US and India are ramping up their own solar panel production, which could worsen the oversupply situation. Majewski notes that only companies with strong financial reserves will likely weather this competitive storm.
“Last year proved to be quite challenging for distributors and installers throughout Europe, leading to a number of bankruptcies and restructurings,” Majewski adds. He emphasizes that success will depend on which companies can endure financially until the market stabilizes.
The European Solar Manufacturing Council reports that Chinese panels are currently sold at about half their production cost in Europe, which has contributed to the downfall of several local manufacturers. The Council urges policymakers to take action to shield European producers from these cheaper imports.
Menlo Electric, founded in 2020, primarily sells solar panels sourced from Chinese manufacturers but has recently started purchasing surplus stock from European companies due to market conditions. Majewski notes that this moment of oversupply presents both risks and opportunities for Menlo.
While he acknowledges the call for more regulatory protections for European companies, he warns that imposing tariffs could ultimately harm the solar industry in the long run. Some experts argue that supporting domestic manufacturing purely for its geographic origin does not necessarily lead to better outcomes in terms of environmental benefits or economic growth.
Menlo has also expanded its operations outside of Poland, establishing a presence in countries such as Germany, the Netherlands, and even creating hubs in Dubai and South Africa. This strategic shift comes as Poland’s contribution to Menlo’s revenue diminishes, now at just 20% compared to 50% in 2022.
With the ongoing challenges in the solar market, Majewski and his team remain vigilant and focused on navigating the turbulent landscape ahead.