Note From Europe- After Modules, Inverter Makers Need Protection Too

Solar Power Europe raises demand for protection local Inverter Majors

Solar Power Europe, the leading association for the European Solar PV sector, has turned ints attention to the threat to non-Chinese inverters majors in the developed world. In a statement held after an ‘exceptional’ meeting at Germany’s SMA, the board issued a statement calling for more support for the inverter makers who have faced increasing stress in recent times due to strong Chinese competition. Currently, the top 5 inverter majors globally are all Chinese.

Extract from the statement issued-

“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.

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

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.

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.

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.

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.”

About IPCEIs

Important Project of Common European Interest (IPCEIs) are Member State-led ambitious cross-border breakthrough innovation and infrastructure projects that can contribute significantly to the achievement of EU strategies, including the European Green Deal and the Digital strategy, while generating positive spill-over effects benefiting the EU economy and its citizens at large beyond the participating Member States.

Since IPCEIs are funded from national budgets, Member States are in the driving seat to identify the scope of the project, to select (preferably following open calls) participating companies, and to agree on project governance.

The public support by Member States to the projects and companies participating under the IPCEI, which constitutes State aid under EU rules, has to be notified to the Commission for assessment and approval. The Commission stands ready to support plans by Member States and the industry, provide guidance and coordinate efforts, where necessary, and is committed to a swift assessment of the relevant projects as soon as notified. Once formally notified, the Commission assesses proposed projects under the IPCEI Communication.