SMA Solar to start ‘final assembly’ of some products in the US

SMA Solar, a German solar inverter manufacturer, is set to start assembling power systems for large-scale solar and energy storage projects in the United States. The company will locally assemble its Medium Voltage Power Station (MVPS), which includes a central or battery inverter with a transformer and medium-voltage switchgear. The first project in the US featuring this product is anticipated in the first quarter of 2026, with a gradual rollout planned for the second quarter.

By assembling products domestically, SMA aims to reduce project timelines, simplify shipping, and potentially meet domestic content requirements under the Inflation Reduction Act (IRA). The company plans to increase the share of locally sourced and assembled components during the product’s introduction in the US market. The IRA currently offers a 10% tax credit to projects that meet the required threshold of US-made products or components.

However, recent trade tensions between the EU and the US have led to uncertainty over potential tariffs on European goods entering the US. By conducting final assembly in the US and using more domestic components, SMA Solar hopes to gain a competitive advantage in the market. The company’s move comes at a challenging time for the industry, as SMA Solar and its competitors have faced financial and market challenges due to declining demand in global residential and small-scale solar markets.

The announcement by SMA Solar also coincides with ongoing discussions regarding the IRA’s clean energy provisions, following a proposed bill’s passage in the US House of Representatives. While the future of the domestic content portion of the IRA remains uncertain, SMA Solar’s strategy of local assembly in the US could help navigate potential changes in the regulatory landscape.