The decision to quit the business and offload its manufacturing units comes in the wake of a €1bn losses posted for the 2012 financial year.

Bosch chairman Dr. Volkmar Denner remarked that due to the continual market changes, the company is not sure of any lasting improvement in the business.

"Even though we reduced our manufacturing costs significantly in 2012, it wasn’t enough to compensate for the fall in prices of up to 40 percent. Nearly the entire solar industry is currently deep in the red worldwide," explained Denner.

Bosch entered the solar energy business in 2008 has since suffered total losses of €2.4bn, including €1.6bn in impairments in four years of operations.

Several new schemes were adopted by the company to revive its business and included, the latest technological advances, additional means to reduce costs, as well as possible partnerships.

"However, none of these possibilities offered a solution that would be economically viable over the long term," Denner added.

Closure of the company’s solar business is expectde to result in 3,000 jobs being lost, which the company assured will be rehabilitated in other Bosch units.