The German TAZ here reports that profits for SMA Solar in 2011 fell by more than a half, to 166 million euros.
In light of the fall in prices in the branch and planned cuts in subsidies in Germany, SMA anticipates a further decrease in sales and profitability.”
Yet, SMA director Pierre-Pascal Urbon is still optimistic. To avert the ill fate of other solar manufacturers in Germany, like Q-Cells and Solarworld, SMA aims expand business in foreign markets. China is a huge market, but Chinese manufacturers are subsidized by the Chinese government, which distorts competition, Urbon claims. Imagine that – subsidies distorting competition. That of course would never happen in Germany or Europe, now would it? (sarc off)
SMA sales in 2011 sank from 1.9 billion euros to 1.7 billion. The TAZ writes:
This year revenue is expected to sink to 1-2 to 1.5 billion euros, the company said.
The main reason for the expected decline are the reduced feed-in rates that the government mandates for producers of solar energy in Germany, which go into effect on April 1, 2012. The change in feed-in tariffs will result in drops of up to 40%,
Because of Germany’s overly generous feed-in tariff paid to solar power producers in the past, half of the world’s solar power generation capacity is said to have been installed in Germany, a country that gets as much sunshine as Alaska.