Menlo Electric, a leading Polish wholesaler of solar panels, has emerged as Europe’s fastest-growing company in the Financial Times FT1000 ranking. With an astounding annual compound growth rate of 830.8% between 2020 and 2023, Menlo recorded nearly €151 million in revenue last year. The company’s rise reflects strong demand for solar energy, driven by economic and geopolitical factors, including Europe’s energy crisis following Russia’s invasion of Ukraine.
Surging Demand and Market Expansion
Menlo Electric capitalized on the growing demand for solar panels across Europe, the Middle East, and Africa. During the COVID-19 pandemic and the subsequent European energy crisis, businesses and households sought alternative power sources to combat soaring electricity costs. This shift boosted Menlo’s rapid expansion, making it the fastest-growing company in the renewable energy sector.
The company initially focused on the European market, selling Chinese-manufactured solar panels. However, its reach has extended far beyond Poland. Today, Menlo operates regional hubs in Dubai, South Africa, and Iraq, supplying solar components to countries from Senegal to Pakistan. The company also recently entered Ukraine, where demand for renewable energy has surged due to power shortages caused by Russian attacks.
Industry-Wide Challenges: Oversupply and Falling Prices
Despite its impressive growth, Menlo Electric faces hurdles in an increasingly competitive industry. The global solar market is experiencing an oversupply issue, leading to falling prices. Founder and CEO Bartosz Majewski predicts that revenue will remain flat in 2025, marking a second consecutive year of stagnation.
“There is a huge issue of overcapacity and oversupply in the market, even though demand globally is growing at a healthy pace,” Majewski stated.
This trend is driven by aggressive production in China, where manufacturers benefit from substantial government subsidies and lower labor costs. The oversupply has led to plummeting prices, forcing European manufacturers into financial distress. According to the European Solar Manufacturing Council (ESMC), Chinese panels are now selling in Europe at nearly half their production cost. This has resulted in a wave of bankruptcies among European solar companies since 2023.
The Shift in Menlo’s Procurement Strategy
In response to market shifts, Menlo Electric has adapted its procurement strategy. While the company initially sourced most of its solar panels directly from China, it now acquires surplus stock from European distributors.
“Because there is a big oversupply in Europe of panels, batteries, and inverters, we are increasingly purchasing from local distributors who are offloading excess inventory at attractive terms,” Majewski explained.
This strategy allows Menlo to remain flexible in pricing while capitalizing on market fluctuations. However, it also raises questions about the long-term sustainability of European solar manufacturers, who struggle to compete with heavily subsidized Chinese imports.
The Call for Regulatory Support
Industry leaders are urging European policymakers to introduce emergency measures to protect local solar manufacturers from cheap imports. Christoph Podewils, Secretary-General of the ESMC, emphasized the need for fair trade practices, stating, “Today’s unfair trade practices must be addressed to create a fair and level playing field.”
However, Majewski cautions against protectionist policies, arguing that imposing tariffs on Chinese solar products could backfire by increasing costs for consumers and slowing down the transition to renewable energy.
“Clients don’t want to pay extra for European-made components,” he said. “Even large-scale solar investors prioritize cost efficiency over origin.”
A Brussels-based think tank, Bruegel, echoed this sentiment, warning that EU subsidies should focus on innovation rather than merely supporting domestic manufacturers. “Subsidizing solar manufacturing for the sake of being European does not necessarily accelerate decarbonization or economic growth,” Bruegel stated in a 2024 report.
Global Trade Policies and Their Impact
As Menlo Electric navigates a volatile market, international trade policies remain a critical factor. The company is closely watching developments in the U.S., where former President Donald Trump has threatened to escalate trade tariffs on Chinese imports. While such policies could temporarily boost European manufacturers, they also risk disrupting the global supply chain and increasing costs for solar projects.
Despite the uncertainties, Menlo remains committed to its growth strategy, prioritizing market adaptability and financial resilience. With a diversified presence across multiple regions and a keen focus on cost efficiency, the company is positioning itself as a dominant force in the evolving solar industry.
