German home energy storage and virtual power plant (VPP) company sonnen GmbH, sold by gas major Shell in August, has filed for insolvency.
Reported by German newspaper Handelsblatt on 22 October, the company, which was sold to investor TIVEN, informed its approximately 400 employees of the insolvency filing.
Services will continue for its customers, though sonnen’s subsidiaries and its headquarters will be liquidated or placed under self-administered insolvency. According to Handelsblatt, only a single production site will remain.
Shell, then Royal Dutch Shell, first invested €60 million (around US$70.23 million) in sonnen in 2018 before acquiring the company outright the following year, when it held a leading share of the German residential battery storage market.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
The deal formed part of a broader push by Shell into distributed energy resources (DERs) at the time, alongside acquisitions including UK provider First Utility, aggregator Limejump and EV firm New Motion.
Sonnen was an early mover in VPP services, launching an aggregated VPP programme in Germany in December 2015 and later rolling out its first US VPP in Utah, which went on to anchor its US expansion.
In September 2023, Handelsblatt reported that Shell was seeking buyers for a majority stake in sonnen at a valuation of €1.35-1.8 billion. That process concluded with TIVEN, the private investment vehicle of AURELIUS founding partner Gert Purkert, acquiring the business.
A Shell spokesperson told Energy-Storage.news at the time that the sale reflected “ongoing portfolio high-grading efforts” and a focus on areas of the power value chain offering the strongest returns.
Handelsblatt further reported that it obtained internal documents showing that sonnen’s revenue fell from €443 million in 2023 to €198.9 million in 2024.
The company took measures to reduce costs, such as shuttering business units and cutting jobs, but was unable to meet its goals.
In the US, sonnen will continue to operate as Sonnen Intelligence GmbH, though its future in Egypt is unknown and Spain is remaining as a service company for the time being.
The involved parties declined to comment.
