German PV equipment securing orders from US, European markets

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From pv magazine Germany

VDMA said this week that German PV equipment providers recorded a slight decline of 3% in incoming orders last year, with sales falling 7% year on year. All in all, this points to a demand recovery, according to the VDMA.

The pandemic’s impact has largely subsided, with fewer supply disruptions in electronic components compared to the previous year, according to the VDMA. German photovoltaic machine builders generated approximately 85% of their sales from silicon and thin-film solar cell production systems, while the remaining portion comprised module integration equipment and machinery for ingot and wafer fabrication.

Currently, China dominates photovoltaic production, with German PV equipment suppliers exporting 78% of their products, of which 57% went to Asian customers. Jutta Trube, Head of VDMA Photovoltaic Production Equipment, noted that the Asian solar market remains the largest sales contributor, while the American and European markets show increasing attractiveness.

The US Inflation Reduction Act (IRA) is driving the establishment of solar factories, leading to an 18% export share for German manufacturers in the Americas region in 2022. European mechanical engineering companies, including those in Germany, achieved a 22% total turnover share. Both regions experienced a 7% increase in turnover last year.

“It is quite clear that solar photovoltaic production is growing in regions with high incentives,” said Peter Fath, managing director of RCT Solutions. “The United States, with the Inflation Reduction Act, 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, which can be enhanced through the implementation of effective industrial policies. He noted that manufacturing costs play a crucial role in investment decisions related to solar production lines.

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