Inverters

The Israeli inverter manufacturer saw its net profit decline 4% year-on-year to $33.1 million in the second quarter, despite shipping 1.3 GW and seeing a 43% increase in turnover. Gross margins were affected by the increase in U.S. tariffs on China made products.

This Swiss giant is following a trend as large multinational high-tech companies see their role as redesigning infrastructure rather than supplying inverters at ever lower margins. Schneider Electric has pulled out of large scale solar, Siemens’ Kaco acquisition and Junelight launch show increasing interest in the C&I and residential markets, and GE is likely to divest its power conversion business due to low profit margins in that sector.

Roth Capital Partners reports that the inverter maker ceased U.S. sales last Friday, laying off all of its U.S. citizen staff, amid rising tensions between the Trump Administration and China.

With clean energy being generated at lower and lower prices around the world, solar power is playing a leading role in bringing the curtain down on coal, and will help the decarbonization of transport and space heating too.

Sales revenue declined at the start of the year despite steady inverter shipments. The reverse was mainly due to sluggish project business and SMA is predicting significant increases in sales and earnings in the second half.

The Israeli power electronics maker’s revenues and shipments keep rising as it absorbs more companies, but the pending increase in Section 301 tariffs in the United States leaves some clouds in the future.

California utility PG&E has tested levels of residential solar power up to 100% penetration, and how to mitigate the effects of voltage and thermal overload via smart inverters and traditional transformer and circuit upgrades — with smart inverters shown to allow for up to 100% penetration at cost-effective pricing.

Following the decision to require retailers taking part in the Solar Homes program to be signatories to the Clean Energy Council’s Solar Retailer Code of Conduct, the Victorian government has set specific requirements for inverters that will be installed under the program.

The German inverter producer’s sales also fell significantly in the past financial year. With its cost reduction program, SMA is now eager to orchestrate a turnaround, but its first-quarter guidance still shows a sustained downward trend.

After announcing its entry into residential storage a week ago, the Munich-based multinational has now unveiled a plan to acquire inverter manufacturer Kaco. Siemens has not provided details about the value of the transaction.