German photovoltaic (PV) inverter manufacturer SMA Solar Technology AG (ETR:S92) has revealed its intention to establish a production plant in the United States, buoyed by the government's efforts to boost domestic clean energy manufacturing.
The proposed facility is expected to initially target an annual capacity of 3.5 GW, with plans for potential expansion over time, as announced on Tuesday.
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SMA Solar Technology has initiated the search for a suitable site, collaborating with various US states in the process. The company anticipates finalizing the location selection in the first half of 2024, with production set to commence in 2025.
Highlighting the significance of the move, SMA's Chief Executive Juergen Reinert stated, “The US is a key market, and the Inflation Reduction Act (IRA) provides an extraordinary opportunity for long-term growth.” The IRA, part of the Biden Administration's initiatives, is seen as a catalyst for stimulating clean energy manufacturing in the US, according to Reinert.
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A recent report by Wood Mackenzie predicts a nearly threefold increase in annual renewable energy deployments in the US over the next decade, reaching 110 GW, largely attributed to the IRA.
SMA Solar Technology is concurrently developing a new Gigawatt Factory at its German headquarters, set to double the company's production capacity to nearly 40 GW. The EUR 80 million (USD 86.2 million) facility is slated for completion in 2025, aligning with the company's strategic expansion plans.
