SMA announces U.S. manufacturing plan, site selection underway

SMA America

In the flurry of solar manufacturing news the last 12 months, U.S.-based inverter manufacturing has still lagged. So, this is a big deal: SMA Solar Technology AG will expand manufacturing into the United States. SMA expects to start production in 2025.

SMA plans 3.5 GW of capacity per year in the new site, with opportunities to expand with time. It is expected to create up to 200 new jobs in the first three years.

“The US is a key market, and the Inflation Reduction Act (IRA) provides an extraordinary opportunity for long-term growth,” says SMA CEO Jürgen Reinert. “With this step we will significantly strengthen our market share in the U.S. and set the course for SMA’s future growth.”

SMA is working with multiple states and potential partners to evaluate the most strategic manufacturing location and approach. Site selection is anticipated in the first half of 2024.

“The global demand for climate-friendly solar solutions and the urgent need for more energy efficiency continues to increase,” says Reinert. “This is reflected in our order books, and with our broad portfolio of solutions we are ideally positioned to benefit from this decision.”

The manufacturing expansion into the U.S., which will add 3.5 gigawatt of capacity per year, coincides with the construction of the SMA GIGAWATT FACTORY, which has empowered SMA to double its production capacity in Germany to 40 gigawatts per year. Starting in 2025, solutions for large-scale PV and storage power plants will be manufactured in Niestetal for global deployment.

Local manufacturing is a strategic piece of SMA’s growth trajectory.

“This strategic decision will energize SMA’s growth and supply solutions to a market seeking domestically sourced products,” said Jeppe Johansen, managing director of SMA America. “We applaud the Biden Administration working in collaboration with the Department of Energy and the IRS for their bold policies to stimulate clean energy manufacturing in the US. The potential for our market is vast and local manufacturing is one strategic piece of our growth trajectory.”

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