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Solar Energy

SolarPower Europe calls for action plan to save the European PV inverter industry

December 10, 2024 ryansheehanrts

While the production of solar modules and cells is already largely dominated by Chinese companies, inverter production was previously the strongest link in the solar value chain in Europe. As recently as 2023, PV inverters with a capacity of more than 80 GW were still being manufactured on the continent, with the main focus (86 %) on string inverters, which are particularly suitable for PV rooftop systems on residential buildings and small commercial applications, according to SolarPower Europe.

However, for several months now, the European inverter industry has been struggling with difficulties caused by global overcapacity in production and a corresponding drop in prices, as well as a slowdown in the installation of rooftop PV systems in some key European markets.

Job cuts at SMA and Fronius – Fimer insolvent

In mid-November, SMA announced that it would cut up to 1,100 jobs by the end of 2025, two-thirds of them at the company’s headquarters in Niestetal, Hesse. This would mean the loss of every full-time job at Germany’s best-known inverter manufacturer. Overall, the company wants to save 200 million euros.

Also see: SMA expands production its capacity

In June of this year, Fronius, Austria’s best-known inverter manufacturer, was forced to lay off 350 employees in its solar division. In mid-July, the group cut a further 450 jobs in Austria and 200 at subsidiaries in Germany and the Czech Republic. As recently as 2022 and 2023, the company invested around 420 million euros in the expansion of production lines at its Austrian sites in Sattledt and Krumau and hired 2,000 new employees.

In 2022, the Italian inverter manufacturer Fimer, which had taken over ABB’s solar inverter business two years earlier, went bankrupt. A few days ago, the company, which is now under special administration, announced the sale of its assets to MA Solar Italy, a subsidiary of the British McLaren Applied Group.

SolarPower Europe calls for rescue package

In view of these developments and the strategic importance of solar inverters for the energy transition and the stability of energy supply, SolarPower Europe is now calling on the EU and its member states to put together a rescue package.

‘Inverters are the brain of the energy system, connecting solar power to grids, batteries and other clean energy technologies that are becoming increasingly important as energy systems in Europe become more electrified and digitalised. Europe simply cannot afford to lose this critical industry and must act now,’ urges the European solar industry association.

Also see: European inverter industry under pressure – IPCEI initiative

SolarPower Europe calls for an action plan to examine all options, including enforcing the highest cyber and energy security standards and providing direct financial support mechanisms to increase competitiveness at the global level while ensuring a level playing field.

Ensure EU leadership in critical communication components

In addition, the association calls on European decision-makers in Brussels and the member states to consider an ‘Important Project of Common European Interest’ (IPCEI) for smart and secure electrification in order to make better use of public funds and to ensure EU leadership in critical communication components of future energy systems such as solar inverters. (hcn)

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Solar Energy

SolarPower Europe – Europe must strengthen its production base for solar inverters

November 27, 2024 ryansheehanrts

After their quarterly meeting, the SolarPower Europe Board of Directors’ quarterly meeting – which was exceptionally held at the SMA headquarters in Kassel, Germany – released the following statement.

“Inverter manufacturing has historically been Europe’s strongest link in the solar supply chain. As recently as 2023, the continent hosted more than 80 GW of inverter manufacturing, primarily focused (86%) in string inverters which are particularly well suited for rooftop PV systems in residential and small-scale commercial applications.

Also see: “A company cannot be on hold for a year”

We acknowledge the important role for the path of the energy transition by inverter-based energy supply and the crucial role for the system stability and sovereignty.

However, the industry now faces difficulties due to global manufacturing overcapacity and a slowdown in the rooftop PV segment in several important European markets.

Call for a Important Project of Common European Interest

Inverters are the brains of the energy system, connecting solar output to grids, batteries and other clean energy technologies, which become only more important as Europe electrifies and digitalises its energy systems. Europe can simply not afford to lose this critical industry and must act now.

Also see: European inverter industry under pressure – IPCEI initiative

As a structural solution, we call on European policymakers in Brussels and Member States to consider a dedicated Important Project of Common European Interest (IPCEI) on smart and secure electrification, to better leverage public funding and guarantee EU’s leadership in the critical communication components of the future energy systems, like solar inverters.

Enforcing highest standards and financial support mechanisms

But more immediate measures are needed as well. We ask European policymakers to develop an action plan for the EU inverter industry, exploring all options on the table, including; enforcing the highest standards on cyber- and energy security, and providing direct financial support mechanisms to enhance its competitiveness on a global scale, while ensuring a level playing field.

Also see: European solar manufacturing should be a priority

The electrification and digitalisation wave are an opportunity for Europe’s inverters to seize the innovation edge, wield next-generation grid-forming ability, and establish a competitive global market share.

Right now, Europe can take up this opportunity to entrench its world-leading spot in inverters that go the extra mile – supporting the grid and securing cyber-preparedness. However, with inaction, Europe risks not only the inverter industry – and tens of thousands of jobs – but the secure electrified transition itself.” (hcn)

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Solar Energy

Jan Stottko of SMA: “The most Polish inverter on the market”

November 11, 2024 ryansheehanrts

How do you assess the current situation in the Polish PV market?

Jan Stottko: In 2022 and 2023, the Polish government used EU funds to promote the expansion of photovoltaics. After the 2023 election, there was a slump in the PV industry because the market at the time was heavily dependent on subsidies. In the meantime, demand for climate-friendly solar solutions has increased, new subsidy programs have been launched and we expect the market to stabilize in the future. As in other European countries, the general European mood and current inflation are influencing the climate for private investment. In contrast to Western Europe, the electricity price for private customers in Eastern Europe is part of social policy and is cross subsidized by commercial and industrial electricity prices. This means that a kilowatt hour consumed privately in Poland can be cheaper than one used commercially or industrially.

Also interesting: Tomasz Bodetko of PST Group: “We need more energy storage facilities for balancing the grid”

When did SMA enter the Polish PV market?

SMA has been present in the Polish market since 2012. In the following years, SMA built up a sales team there. Since 2018, a stable PV market has been developing in the country in the area of solar systems for private users and in the area of large-scale PV power plants. In addition, the current government is an outspoken supporter of photovoltaics and promotes its expansion. SMA produces larger assemblies in the Magnetics plant in Poland. The plant is now the second most important location in Europe in the SMA Group. The proximity to the university city of Krakow also ensures good availability of specialists. Sales is docked at SMA Magnetics and looks after the Home, Commercial and Industrial markets.

How is SMA positioned in the Polish photovoltaic market?

What we ourselves only recently realized is the fact of “domestic production”. As is probably the case everywhere, Polish customers also value regionally produced products, which is why we allow ourselves to advertise with the slogan “SMA – the most polish inverter in the market” for some time now. In addition, we strive for long-term relationships with our customers. We have been in the PV market for so long that we have learned to listen and respond to customer needs. We share values with our customers such as high standards of quality, performance, durability and data security. Data security, compatibility and guarantees are particularly important for large power plants. Investors in Poland and Germany have very similar mindsets.

Also interesting: Menlo Electric: 1 GW of PV component deliveries in 2024 to date

How do you assess the prospects of the Polish PV market?

In the home sector, new installed power has almost quadrupled from three gigawatts in 2020 to 11.3 gigawatts in 2023. In the large-scale system sector, installed power has increased from just under one gigawatt to over four gigawatts in the same period. Even though demand for PV on residential buildings has declined, we are seeing increasing demand in commercial and industrial sectors. Photovoltaic electricity is cheap, and electricity prices are also rising in Poland. Poland is therefore a fascinating market with a continuous upward trend since the market stabilized in 2018. In addition, the current government is creating a good climate for renewable energies. Compared to other markets, you may have to be a little more flexible for the Polish market, and the market may also be a little more political than the German one, but it offers excellent growth potential with a long-term perspective.

Also interesting: A modular powerhouse for large-scale energy projects

About Jan Stottko:

Jan Stottko is Sales Partner Manager at SMA and has been with the company since 2006. In international regional sales, he supports his Polish colleagues in supporting Polish installers, who in turn advise end customers in the private sector on SMA solutions for generating, storing and managing solar energy as well as for charging electric vehicles. He also supports PV projects in the commercial, industrial and service sectors, with the Polish SMA sales department being actively supported by the subsidiary SMA Magnetics. In addition to the Polish team, Jan Stottko is also responsible for colleagues in Sweden, Austria, Switzerland and Hungary.

Interview by Manfred Gorgus

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Solar Energy

Backup solar power for Ukrainian hospitals

July 31, 2024 ryansheehanrts

Two recent projects in Kharkiv and Brovary showcase the foundation’s commitment to building aresilient and sustainable future for Ukraine’s healthcare infrastructure.

Kharkiv children’s hospital: A beacon of hope

In Kharkiv, where the scars of conflict are still fresh, a children’s hospital now stands as a symbol of resilience and international solidarity. RePower Ukraine has installed a state-of-the-art 30 kW solar power plant, complete with 54 panels and a 43 kWh backup system. This installation ensures uninterrupted power supply to critical units, including palliative care, rehabilitation, and neurology.

Kharkiv’s Mayor, Igor Terekhov, expressed his optimism: “We’ve seen the miracle of uninterrupted power at Hospital No. 17. Now, this children’s hospital joins the ranks of the energy independent. It’s more than electricity; it’s a beacon of resilience.”

The project’s impact is profound, as described by Vladlena Salnikova, the hospital’s medical director: “Imagine a child on life support, their family anxiously watching. Now, imagine the power fails. With this system, that fear vanishes. We’re not just saving on bills; we’re saving lives and offering peace of mind.”

This achievement is the result of a global collaborative effort, involving expertise from Jinko Solar, support from BSW and SolarPower Europe, and even contributions from the community of Raasay in Scotland and Scottish schoolchildren.

Brovary multidisciplinary clinical hospital: Scaling up the vision

Building on the success in Kharkiv, RePower Ukraine has expanded its mission to the Kyiv region. The Brovary Multidisciplinary Clinical Hospital now boasts a 24 kW solar power plant with a 28.8 kWh backup system, designed to support the intensive care unit serving over 187,000 residents annually.

The project’s inauguration on July 25, 2024, saw attendance from key figures, including Brovary Mayor Igor Sapozhko, German Deputy Ambassador Tim Prange, and First Deputy Minister of Health Serhiy Dubrov, underscoring the initiative’s significance at local and international levels.

RePower Ukraine

Brovary multidisciplinary clinical hospital

Jörg Ebel, President of the German Solar Association (BSW), emphasized the project’s importance in a video message: “Today it’s a great honour for me as President of the German Solar Association to welcome you all on the day when we are opening the new solar system, providing electricity and security. I am very grateful to cooperate with our dear partner – RePower Ukraine, who made this day possible.”

Also see: New Solar2Share Collective

“I’m absolutely delighted that we have been able to use our technology to help provide safe, reliable healthcare to this region,” said SMA CEO Jürgen Reinert. The German-based company was also participating in the project.

A model for sustainable healthcare

Iryna Kosenko, Communications and PR Manager of RePower Ukraine, highlighted the broader implications of these projects: “This is primarily about the energy independence of communities, the resilience of critical infrastructure, and ensuring medical services for residents, despite challenges with constant power outages. We are creating a model of supporting energy supply for hospitals that needs to be scaled to other medical facilities throughout Ukraine.”

The foundation’s work extends beyond mere infrastructure development. Established in 2022, RePower Ukraine has been implementing renewable energy initiatives across Ukraine, coupled with educational projects for veterans and internally displaced persons.

International cooperation and support

These projects exemplify the power of international cooperation in addressing urgent needs. The involvement of entities like the German Solar Association, SolarPower Europe, and various international donors demonstrates a shared commitment to Ukraine’s sustainable recovery.

First Deputy Minister of Health, Serhiy Dubrov, emphasized the critical nature of such initiatives: “In the conditions of a full-scale war, providing healthcare facilities with autonomous power sources is crucial for delivering quality medical care. By the start of the heating season, we aim to provide all cluster and super-cluster healthcare facilities with uninterrupted power sources.”

Looking ahead

As RePower Ukraine continues its mission, each solar panel installed becomes a statement of defiance against adversity and a step towards a more resilient future. The foundation’s work not only addresses immediate energy needs but also contributes to Ukraine’s long-term goals of energy independence and environmental sustainability.

Also see: Joint Venture of EBRD and Goldbeck Solar for PV projects in Ukraine

These hospital projects in Kharkiv and Brovary serve as powerful examples of how renewable energy can play a crucial role in supporting critical infrastructure during challenging times. As Ukraine looks towards recovery and rebuilding, initiatives like these pave the way for a more sustainable and resilient future, powered by clean energy and international solidarity. (hcn)

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