According to the Reuters news agency, Bosch Solar has lost 2.4 billion euros (2 billion pounds) since it created the solar energy unit in 2008 after it bought Aleo Solar and Ersol. It made a 1 billion euro loss last year.

"This is possibly the most painful experience that I have had to endure in my professional career," said Chairman Franz Fehrenbach in a statement unveiling the plans for the unit that employs 3,000 staff.

The Bosch unit is the latest casualty of boom and bust experienced in Germany's solar energy industry, and provides more evidence of problems facing the solar industry, where companies in Europe and the United States have struggled with overcapacity, falling prices, low-cost Asian competition and cuts in Government subsidies.

SolarWorld is trying to do a deal with creditors on a restructuring plan. And just last week we reported that Suntech had declared itself bankrupt as SPV Market Research reported that top PV manufacturers lost over $2bn in 2012.

Other German companies that have suffered include Q-Cells, which went bankrupt and was saved by Hanwha SolarOne; Solarhybrid, Solon, Solar Millenium, and Schott Solar.