German solar inverter and energy storage manufacturer SMA is looking for further savings in its operations — and shedding more jobs is part of the company’s expanded restructuring plan.
How Many Jobs Will Be Lost At SMA?
Last week the company announced a planned reduction of approximately 300 full-time jobs in Germany and 50 full-time jobs internationally out to the end of 2026; which will result in additional savings of more than €100 million. This follows previously announced plans to slash approximately 1,100 jobs in 2025.
The company’s division dealing with large-scale power plants seems to be bubbling along fine; although tariffs, trade barriers, and related uncertainty are threats. But its Home & Business Solutions segment, once two separate divisions, is still struggling. CEO Jürgen Reinert was previously expecting sales from the new division in 2025 to be significantly higher than 2024, but that may not materialise.
“The goal of the expanded restructuring and transformation is to put Home & Business Solutions back on a clear path to success and to ensure the company’s overall performance through balanced development of both divisions,” said SMA CFO Kaveh Rouhi.
While still regarded as a high-quality manufacturer, recent years haven’t been too kind to SMA.
Overall sales for 2024 were 19.7% less than 2023. While 2023 was a comparatively strong year; the few years prior were rather grim. And for the first half of this year sales were well below the previous year’s figure at €684.9 million (H1 2024: €759.3 million), with demand in its Home & Business Solutions segment remaining weak. Alongside declining growth rates in its home country, SMA says competition and price pressures from Asian suppliers had once again risen.
How’s SMA Faring In Australia?
If it’s any indication, SMA solar inverter reviews here on SolarQuotes from Australian customers have noticeably dropped off over the past few years. In the last 12 months, only 23 reviews have been submitted compared to 32 during the 12 months prior and 58 for the same period prior to that. However, the average star rating has improved — from 4.7 over the last three years to 4.9 stars over the last 12 months.
There are likely multiple factors involved in some of the shine coming off SMA in Australia’s home solar market; among them:
Pricing
Comparing prices for solar inverters here in Australia, the significant difference between SMA and several of the better budget brands is apparent — more than double the cost of some of the other inverter brands SolarQuotes recommends. But Australians still seem happy to plonk down a significant chunk of change for another pricey European brand — Fronius — judging by the number of Fronius inverter reviews that keep pouring in (624 in the last 12 months).
Component Ecosystem
The company was late to the game offering viable SMA battery storage to Australian households. It wasn’t until late July this year that SMA’s Home Storage battery was Clean Energy Council approved; several weeks after the national Cheaper Home Batteries rebate formally launched. And currently, the firm doesn’t offer an EV charger to Australian customers after discontinuation of SMA’s original device.
SolarQuotes’ resident veteran installer Anthony Bennett recently detailed four core benefits to buying a solar inverter, battery and EV charger from one brand.
The ‘C’ Word
In 2017-2018 SMA shifted manufacturing of their Sunny Boy string inverters, which had been used extensively in Australian home solar installations, to China. There’s nothing wrong with that per se, as some great gear comes out of China. But SMA’s German manufacturing was something that made it stand out from the pack. Some of these Chinese inverters reportedly being dead on arrival didn’t help.
While the company subsequently announced its intention to quit manufacturing in China, some of it remained. Currently their non-hybrid Sunny Boy inverters are produced in China according to the teeny, tiny vertical print crammed into the right margin on the last page of this datasheet. To be fair, the same tiny print on the three-phase SMA Tripower and hybrid Sunny Boy datasheets indicates those ranges are still made in Germany.
But it’s worth noting in its recent announcement concerning the layoffs, SMA’s Olaf Heyden said (bolding mine):
“We will adapt our product portfolio, further streamline and internationalize our production, and realize additional cost-saving potential by the end of 2027.”
Installer Support
Installer recommendations play a significant role in customer solar inverter choices, and that seems to be lacking. In this year’s SolarQuotes Installers Choice Awards for the best solar inverters in 2025, SMA didn’t even rank in the top 9.
SMA has cruised the highs and is now riding through the lows of the ‘solar coaster’. Through all its woes in recent years, the company has proven to be a battler. But that’s cold comfort for the ~1,450 employees who have already or will lose their jobs.
About Michael Bloch
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Sounds like a company to avoid, sales dropping, slashing employees. Sounds like they are in a death spiral.
You wouldn’t want to bet on them being around for a potential warranty claim down the track.
I have a SMA (Sunny Boy) 1Kw system. it is 6 x 160 panels and I have had it for over 15 years. It was when the QLD or Fed government first started offering rebates but only on or for 1Kw. The deal that I got was that it was installed for free ……..so it cost me nothing. I would have upgraded to 3Kw but I have a hip roof and already have a solar hot water system which was placed dead set in the middle of the north facing roof. If and when I upgrade I would be happy to chose SMA if it offered the same features and price.
how the mighty have fallen. Do you mind doing a review of their hybrid inverter & battery storage? Will be interesting to see how it fares against Fronius, Sungrow etc. Thanks!
Thank you Michael.
As is often the case in life, some things seem to go full circle over time and come back to haunt you. And SMA has one of those.
You mention how SMA has slipped well down the ratings list and certainly below many home grown Chinese brands. There is no doubt that SMA are very sensitive / subdued about this issue, rather than toughen up, improve their technology, and come out fighting.
SMA were the largest exhibitor at Intersolar Europe 2010 in Munich. All their engineers were strutting their stuff. The last thing on their minds was international competition in the Solar Industry – there was none. Until that day in Munich.
Over the next 3 days, all SMA engineers had an insight that they would rather forget. I know this fact well. I was there – running a very small 3 x 3 mtr booth with a single 1 kW inverter on display, that was only hobbled together 3 days earlier in my office in Shenzhen.
It was the first Growatt Inverter.
Lawrence Coomber
Part 2 next.
Like a lot of western industry, SMA’s time is probably limited.
Germany has high labour cost, high production cost, high overhead costs, vs competition from countries with low costs in those sectors, notably China in this industry.
SMA can farm out some / all production to China, but that would ultimately be less cost effective as manufacturing all product in house (and still not as competitive), and as a typically western publicly listed company, they would still a middle man that demands excessive cost additions to cover ever increasing profit for shareholders, climbing share prices, overheads, and CEO / exec salaries.
Chinese solar / battery will sell to dominate the market, reduce (wipe out) western competition, then do what they want with pricing, or limiting supply to markets they wish to influence.