The German Engineering Association VDMA has released a new report outlining strong demand for solar power generation equipment from non-Asian markets, signaling a shift in the global solar industry.
The VDMA said this week that German PV equipment suppliers recorded a slight 3% drop in incoming orders last year, with sales down 7% from a year earlier. Overall, this points to a recovery in demand, according to the VDMA.
According to the VDMA, the impact of the pandemic has largely subsided, and supply failures of electronic components have decreased compared to the previous year. German PV machine manufacturers generated around 85% of their sales from silicon and thin film solar cell production systems, while the remainder consisted of module integration equipment and ingot and wafer manufacturing machines.
Currently, China dominates PV production, with German PV equipment suppliers exporting 78% of their products, 57% of which went to Asian customers. Jutta Trube, Director of Solar Power Generation Equipment at VDMA, stated that the Asian solar market is still the largest producer of sales, while the attractiveness of the American and European markets is increasing.
The US Inflation Reduction Act (IRA) promotes the establishment of solar factories, which will lead to an 18 percent export share of German manufacturers in the Americas by 2022. European engineering companies, including those operating in Germany, achieved a total turnover of 22 percent. . The turnover of both regions grew by 7% last year.
“It’s clear that solar generation is growing in areas with high incentives,” said Peter Fath, CEO of RCT Solutions. “With the law that reduces inflation, the United States has created a clear framework for supporting local production, which benefits European machine and plant manufacturers.”
Fath said that there is also a positive trend in Europe that can be strengthened by implementing an effective industrial policy. He stated that manufacturing costs play a decisive role in investment decisions related to solar energy production lines.