Oil and gas company Shell is planning to offer German solar energy firm Sonnen for sale, as reported by the German newspaper Handelsblatt on Thursday. The manufacturer of solar storage has stated that it has no comment but is focusing on the global growth of its business.
Shell acquired Sonnen approximately four years ago for about 500 million euros (536 million dollars), but like its competitors, it has struggled with declining profit margins in retail as wholesale energy prices have surged dramatically following last year’s supply crisis.
Last week, Shell announced that it would sell its household energy retail business in the UK and Germany to British energy provider Octopus Energy Group.
According to the Handelsblatt report, several people familiar with the matter have suggested that Sonnen could be valued at 1.35 to 1.8 billion euros, which is three to four times the expected revenue of 450 million euros in 2023.
“We ask for your understanding that we do not comment on reports about Shell’s business deals. In principle, Sonnen continues its global growth trajectory in the rapidly expanding storage market,” said a Sonnen spokesperson.
Sonnen, which provides storage batteries for rooftop solar energy systems, announced last month that it had connected 25,000 homes to the electricity grid, with a capacity of 250 megawatt-hours (MWh), marking a recent milestone for the digital, renewable energy community it is building among its customers.
While 250 MWh is just a fraction of the power demand in Western countries, it places Sonnen in the top league of European electricity storage providers.
