How was SolarEdge’s performance in Europe in 2024?
Christian Carraro: 2024 was a challenging year, not only for us but for the whole industry. We saw contraction in some markets, and others have shown stagnation. Some markets grew a little. Generally speaking, the economy had a difficult time with high interest rates and high inflation. There were also political uncertainties. Ultimately, the result was reluctance to invest.
Also of interest: Michal Marona of SolarEdge: „A market with lots of potential“
And there were the dumping prices from Chinese competitors. How difficult was that for you?
Price competition has always been an interesting topic in our business. When markets contract, we have always experienced strong price pressure. In previous years, such as in 2022 and 2023, there was very high demand for inverters and low availability. All factories ran at full capacity. Now the situation has reversed. The steep price decline might have been tougher for us than for others since we offer a premium product for maximized energy. However, I am sure that we made the right decisions to streamline production and reduce costs. We built a new production line and invested in new manufacturing sites in the U.S. leveraging IRA tax incentives. This has allowed us to offer powerful, high-quality technology at a competitive price point to lower-cost PV.
SolarEdge appoints Shuki Nir as new CEO
The U.S. market will change dramatically with the new president, I guess. Let us talk about Europe: How important is the business here for SolarEdge?
Europe is and was very strong in our worldwide business. We kept our market share up in 2024. We supplied our customers and were able to maintain our position in the tough market. 2025 will be a whole new challenge, of course, but I see a bright future. Our industry is growing more and more.
SolarEdge: New mobile app for operations for residential and C&I solar installers
Do you expect rising demand in 2025?
Yes, but gone are the days of 40% growth per year. I think an increase of overall market demand 10% is realistic. I have confidence that the European market will grow - and grow solidly. For example, we see in retail that the warehouses are empty again and are taking in new goods.
SolarEdge: AI platform optimises commercial storage
What was the split between private systems, say below 30 kilowatts, and commercial installations?
In these segments we see two major trends. Cyber security is becoming increasingly important. This is a clear advantage for us, because our products already comply with today’s cyber security regulations, and the servers for our monitoring platform are securely situated in Germany. The commercial market is also growing because of high energy prices and ESG requirements. Commercial storage systems are also more important. Last year we launched our commercial system, it came into the market just in time.
You mentioned cyber security. Is this very sensitive topic becoming more important?
Definitely. Lithuania, for instance, introduced very strict rules on inverter security, banning inverters that originate from nation states deemed a cyber risk. Great Britain and the EU have also introduced cyber security regulations applying to solar inverters. Other countries will likely follow.
We have seen an increase in larger systems with more than one megawatt all over Europe. Is this market segment also growing for SolarEdge?
Last summer at the Intersolar we launched our first utility-scale inverter with 330 kilowatts. It has been a great success. You are right, the utility market is growing everywhere in Europe. We see a similar trend in agriculture, as agri-PV is also rising. We address this segment with a special tracking solution which follows the sun and optimizes the sunlight for the plants beneath the solar modules.
Which countries in Europe performed particularly well?
The German speaking countries and regions - Germany, Austria and parts of Switzerland performed well. Italy and France were strong, as well as UK and Benelux. The Dutch market had a hard time, but the C&I and utility segment is gaining ground.
How is business in Poland?
In 2024 many of the Polish subsidies ended, and as a result the private market was in turmoil, but upcoming EU funds will benefit the market. The market as a whole is still alive and kicking. The commercial market is moving in the right direction, so I expect positive trends in 2025.
And in the Baltics, or the Balkans?
There we see many new projects, largely C&I and utility-scale. I have observed similar positive trends in the Czech Republic, in Slovakia and in Croatia.
You have launched a commercial battery system with up to 102 kilowatt hours capacity. How did it enter the markets?
First we rolled out the new CSS-OD in Italy, with projects in April 2024. In July we started EU wide supply. Certifications are still pending in some countries, but the road map is clear and our customers are very satisfied with the system.
Outlook 2025: Which opportunities do you foresee for the new year?
I think the prices will not go down any further. Our new factory in the U.S. is fully automated, which allows us to finally introduce a more competitive price point to Europe. We’re seeing that many of our customers value higher quality and secure systems. This includes the security of operational data, too. Cheaper options do not have the same security measures in place, opening customers up to security vulnerabilities and safety concerns. We have a strong brand and a very good reputation in the market, and we offer our customers a good margin.
With a new CEO and a completely new management team in place, what is the strategy for the company to overcome the challenges in the market?
New management brings in new ideas and a new point of view about the markets. Analysing the opportunities, we will continue to focus on high quality and good pricing.. Focusing on the needs of our customers, our new products and tools will help to install PV more efficiently, and we continue to improve customer service, both prior and after sales. I am sure we will succeed.
Which new products can we look forward to at Intersolar in Munich in May?
One product we will show is a new residential battery system for single-phase or three-phase use. The system will be modular designed, scalable from 5 kilowatt hours to 70 or 80 kilowatt hours. There will be more news from us, but I do not want to spoil the event beforehand. Let yourself be surprised!
The interview was conducted by Heiko Schwarzburger.
Christian Carraro was appointed General Manager of SolarEdge in Europe in July 2024. He has been working in the solar industry since 2005. He joined SolarEdge in 2016 to lead the Italian market efforts and was quickly promoted to lead and manage the company’s Southern Europe business activities, before being promoted again to manager of Europe as a whole.
