VDMA is hopeful about future business opportunities for the German solar PV production equipment market owing to ‘necessary photovoltaic expansion’ as envisioned by Fraunhofer ISE in a study it commissioned. For now, total sales for Q2/2019 were down 13% sequentially. Pictured is a rooftop solar installation in Germany. (Photo Credit: Pooja Madhok)

Solar PV Manufacturing Fab In Germany/Europe With Vertical Production Chain Competitive To Chinese Fab Possible, Claims Fraunhofer ISE In First Findings In VDMA Commissioned Study At Intersolar Europe

VDMA Reports 21% Sequential Improvement In Incoming Orders For German Solar PV Equipment Makers In Q1/2019 Which Proves ‘So-Called 5-31 Shock’ Has Been Overcome

German PV equipment manufacturers had a tough time in the second quarter of 2019 as total sales dropped 13% on a sequential basis. German and European markets for PV equipment remained weak compared with the end market for PV modules, even though domestic sales rose slightly in the reporting quarter, according to Dr Jutta Trube, Division Manager of the German engineering federation’s VDMA Photovoltaic Equipment (see Thin Film Equipment Leads Sales For German Producers).

Nonetheless, the federation remains optimistic about the future going by the Fraunhofer ISE’s recent study about the ‘necessary photovoltaic expansion’ in the coming years in German and European markets. VDMA PE expects Q3/2019 revenues to be 24% higher compared to Q2/2019.

During the reporting quarter, VDMA said that the share of plants in consideration of the total value chain in the PV equipment space fell by 24 percentage points, machinery accounted for 29% and components for 40%.

The highest sales were recorded in the thin-film PV segment that represented 65% of the total, sale of equipment for cells dropped by 10 percentage points over previous quarter and sales for wafers and modules improved slightly yet accounted for only 5% and 2% respectively.

The export ratio was high at 96% with China still leading despite a reduced share of 12 percentage points at 67%. The export ratio to the American market increased from 5% to 15% in Q2/2019. Domestic sales within Europe were 4% of the total and in Europe 14% was exported.

Book-to-bill ratio is 1.0 for the first time since the prior-year quarter with an order range of 8.5 months. This VDMA considers as a positive development for the next quarter.

Dr Peter Fath, Managing Director of RCT Solutions GmbH and Chairman of the Executive Board of VDMA Photovoltaic Equipment, forecasts an increase in incoming orders for production equipment for crystalline silicon cells and thin-film modules during H2/2019, but did not give any specific numbers.

The German government has recently come out with its climate package proposal for 2030, removed the 52 GW cap over solar installations as stipulated in the Renewable Energies Act (EEG) and talks about photovoltaic expansion. However, beyond this there is no clarity on the subject as of now.