No Sunshine at SMA Solar

ARCHIV - Blick über eine Photovoltaikanlage auf das Firmenschild des Solartechnikherstellers SMA Solar in Niestetal (Hessen), aufgenommen am 31.03.2009. SMA Solar stellt am 30.03.2016 seine Jahresbilanz vor. Foto: Uwe Zucchi/dpa +++(c) dpa - Bildfunk+++
SMA Solar has fallen on hard times as competitors are mounting and producing for cheap.
  • Why it matters

    Why it matters

    As the world’s largest manufacturer of photovoltaic inverters, SMA Solar’s difficult financial situation is an indication of the overall state of the global solar market.

  • Facts


    • After years of losses, SMA Solar had boosted its stock price by 230 percent and increased revenue by 15 percent in the first half of 2016.
    • The downturn in China’s solar market and the collapse in the price for inverters, however, has pulled SMA Solar’s stock prices down by 9 percent.
    • In response to the downward pressure, SMA Solar is closing plants in Denver and Capetown.
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SMA Solar had just turned the corner after years of losses. The Hesse-based company’s stock price had climbed 238 percent and shareholders took home a dividend for 2015, marking the first time in two years.

Then the Chinese solar market collapsed, dragging down SMA Solar’s stock price with it. As of Thursday, the company’s share price has dropped 9 percent to just €37 from €50 at the start of 2016.

As the world’s leading manufacturer of photovoltaic inverters, SMA Solar is particularly sensitive to fluctuations in the the world’s largest solar market, China. Photovoltaic inverters turn the direct electrical current from solar panels into an alternating current for electrical outlets.

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