SMA Solar Technology, a leading inverter supplier, has announced the commencement of construction for a 20GW inverter factory in Germany. This €80 million investment project is expected to begin operations in 2025 and will increase the company's production capacity from 20GW to 40GW. Located at Niestetal, Hesse, the new factory will produce system solutions for large-scale PV power plants and the products will be shipped to markets worldwide.
Jürgen Reinert, CEO of SMA, highlighted the importance of renewable energy in the fight against global climate change. “Against the background of global climate change, the world is pinning its hopes on renewable energy. But to leverage this enormous potential, PV has to be intelligently coupled with storage systems, e-mobility and other sectors and integrated into the overall system,” Reinert said.
Reinert also emphasized the significance of the new factory, saying, “The factory will be producing system solutions for large-scale PV power plants in two years.” This development is a significant boost for the solar industry as it expands worldwide, and the easing of supply chain constraints in the second half of 2022 has further accelerated growth.
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SMA Solar Technology recently published its financial results for 2022, showing significant improvements in EBITDA and net income compared to the previous year. Despite supply shortages affecting the entire solar value chain in 2022, SMA's provisional results showed an EBITDA margin of 6.6%, posting earnings of €70 million compared to €8.5 million the previous year. Net income also rose significantly from -€23.2 million in 2021 to €55.8 million in 2022. The sales rose by 8.4% YoY to €1 billion, demonstrating the high demand for solar industry products.
SMA's expansion plans in Germany are expected to further boost the solar industry, and Reinert believes that intelligent coupling with other sectors such as storage systems and e-mobility is necessary for solar energy to reach its full potential. “We must work towards intelligent coupling of the sectors, integrate the energy transition and, in doing so, make a significant contribution to achieving the global climate targets,” he said.
As the world continues to turn towards renewable energy sources, SMA Solar Technology's expansion plans and financial results demonstrate that the solar industry is poised for substantial growth in the coming years.
