Germany-headquartered solar PV inverter manufacturer SMA Solar Technology has announced manufacturing expansion to the US with a 3.5 GW annual capacity at an unspecified location.
Management said the company is currently in talks with multiple states and potential partners in the US to evaluate the most strategic location, which should be finalized in H1/2024. Commercial operations are projected to start in 2025.
Calling the decision to expand to the US a strategic piece of its growth trajectory, SMA CEO Jürgen Reinert attributed it to the Inflation Reduction Act (IRA). He said, "The US is a key market, and the Inflation Reduction Act (IRA) provides an extraordinary opportunity for long-term growth."
SMA Americas Managing Director Jeppe Johansen said the decision will energize its growth and supply solutions to a market seeking domestically sourced products.
The German group is already expanding its local manufacturing capacity on home turf with 20 GW capacity which will double its production to 40 GW once the project is online in 2024 (see SMA Solar To Expand Capacity To 40 GW By 2024).
SMA's expansion plans follow another German conglomerate Siemens that announced 800 MW string inverter manufacturing in Wisconsin, US in August 2023 (see IRA Impact: Siemens To Produce Inverters In US).
Enel Green Power of Italy and Meyer Burger of Germany are the other prominent European solar module manufacturers that are expanding their production capacity in the US, also inspired by the IRA (see German Solar Industry Facing Challenging Times).