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.
See also: Fronius awarded Gold EcoVadis rating – for the second time
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)
