On behalf of the Board of Directors of SolarPower Europe, the Secretariat has issued the following joint statement.

This comes in response to reports about European inverter manufacturers facing price pressure and global competition.

Issued after the quarterly Board of Directors meeting of SolarPower Europe, held exceptionally at the SMA headquarters in Kassel, Germany, this statement is attributed to SolarPower Europe and its Board of Directors:

“Historically, inverter manufacturing has been Europe’s strongest link in the solar energy supply chain. In 2023, the continent hosted over 80 GW of inverter manufacturing, mainly focused (86%) on string inverters, which are especially suitable for rooftop photovoltaic systems in residential and small-scale commercial applications.

We recognize the important role that inverter-based energy supply plays on the path toward the energy transition and its crucial role in the stability and sovereignty of the system.

However, the industry now faces difficulties due to global overcapacity and a slowdown in the rooftop solar energy segment in several major European markets.

Inverters are the brain of the energy system, as they connect solar energy to grids, batteries, and other clean energy technologies, which are becoming increasingly important as Europe electrifies and digitalizes its energy systems. Europe cannot afford to lose this essential industry and must act now.

As a structural solution, we call on European policymakers in Brussels and the Member States to consider a European Important Project of Common European Interest (IPCEI) dedicated to smart and secure electrification, to better leverage public funding and ensure the EU’s leadership in critical communication components of future energy systems, such as solar inverters.

But more immediate measures are also needed. We urge European policymakers to develop an action plan for the EU inverter industry, exploring all options on the table, including applying the highest cybersecurity and energy security standards and providing direct financial support mechanisms to improve global competitiveness while ensuring a level playing field.

The wave of electrification and digitalization is an opportunity for European inverters to leverage the innovation advantage, utilize next-generation grid formation capabilities, and establish a competitive global market share.

At this moment, Europe has the opportunity to consolidate its global leadership position in inverters that go beyond supporting the grid and ensuring cyber readiness. However, if it does not act, Europe risks not only the inverter industry (and tens of thousands of jobs) but also the very transition to safe electrification.”