Germany-based multinational engineering and electronics conglomerate Siemens has announced that it will close its solar power business, after losses of $1bn since 2011.
The company has been searching for a buyer since October 2012 to sell the solar energy business, after facing trouble due to low growth and price pressure.
However, Siemens spokesman Torsten Wolf said an investor has not been found after seven months of negotiations because of the "increasingly difficult market situation".
The company acquired Israel's Solel Solar Systems for $418m in 2009 as part of its plans to expand its solar thermal power plants.
According to data compiled by Bloomberg New Energy Finance, the segment has been undermined by falling costs in the competing photovoltaic panel sector and three years ago energy from the latter was 10% more expensive than solar-thermal.
Siemens said it will complete unfinished solar contracts, including projects in Spain, before finalising the closure of the business.
The company has already closed its photovoltaic inverter business and moved out of the Desertec solar energy project in 2012.
Image: Siemens has reportedly lost about $1bn on its solar business activities since 2011. Photo: Courtesy of Rufus46.