SMA MAGAZINE 04 · 2012-04-04 · sma magazine 04 the same. only different. // topic: flexibility / change. growth. competition. // flexibility can mean reorganiz-ing a company from

SMA MAGAZINE 04THE SAME. ONLY DIFFERENT. // TOPIC: FLEXIBILITY /CHANGE. GROWTH. COMPETITION. // FLEXIBILITY CAN MEAN REORGANIZ-ING A COMPANY FROM TOP TO BOTTOM. / FIRST! // RAPID GROWTH AND EMPLOYEES HELD IN HIGH ESTEEM. HOW TO BECOME A “GREAT PLACE TO WORK®”. / MORE SOLAR ELECTRICITY ENTERING THE GRID // WHEN THE RIGHT EXPERTS COME TOGETHER, THE SOLUTION IS CALLED SOLAR FORECASTING. /

EDITORIAL

GROWTH DEMANDS A WILLINGNESS TO CHANGE

Profi table growth is crucial to securing the future of any business. No one would seriously disagree with that. But what are the prerequisites to long-term success? Most of the thinking about this ignores a key factor – every company is unique. That is why our answer may not work for other compa-nies. However it does reveal one of the qualities that make SMA unique, and the theme of this issue – fl exibility.

As a company, we are not merely capable of growth, we are willing to grow. That is what makes SMA‘s particular brand of fl exibility so special. This philosophy lives in every facet of our company. In fact, even when hiring, the fl exibility of applicants counts as a key criterion. Being open to change is important to SMA on a business level too. Wildly fl uctuating mar-kets mean that we are constantly adapting to new conditions and adjusting our course. Jürgen Krehnke embraces this principle. As head of our sales subsidiary in the U.S., he is convinced that a fl exible response to market changes is the only key to lasting success (page 40). Our development also depends on our readiness to innovate. We strive to set decisive trends in this fi eld by proactively driving forward such topics as the grid integration of solar power, based, for instance, on the smart optimization of self-consump-tion or the integration of solar forecasts. In this way, we provide maximum benefi ts for our customers (page 34).

At SMA, we make our strategic decisions with an eye on our customers‘ satisfaction. We strive to increase our capacity and focus more heavily on our customers. This was precisely the basis of our decision to promote con-tinued growth by completing the transition from a functional to a division-based organizational structure by year-end (page 14). For employees and management, this is surely one of the greatest transitions in the history of the company – and not an easy one for those who are reluctant to change (page 24). Add to this the change of generations on the Managing Board, for which we prepared for several years intensively and completed in May (page 06). Continuous change can happen without cost to employee mo-rale and satisfaction, as the “Great Place to Work®” competition clearly demonstrates. We are proud to say that this year we took fi rst place in the category for companies with more than 5,000 employees (page 28).If we can continue to replicate this success in the year to come, we will have done everything just right. I hope you enjoy reading the fourth issue of SMA Magazine.

Pierre-Pascal UrbonCEO and CFO

｢｣ Unusual perspectives and new constellations: The subject of “fl exibility” is mirrored in the layout of this issue. Watch out.

CONTENTS

14

03

0624

40

283447

EDITORIAL //

CHANGE. GROWTH. COMPETITION. // WHEN THE MARKET CALLS FOR IT, FLEXIBILITY CAN MEAN REORGANIZING

A COMPANY FROM TOP TO BOTTOM. SMA IS DOING JUST THAT BY CREATING NEW, DECENTRALIZED DIVISIONS FOR

GREATER IMPACT.

THE SAME. ONLY DIFFERENT. // THE UNPREDICTABLE MARKET ENVIRONMENT PLACES HIGH DEMANDS ON COMPANIES

IN THE SOLAR INDUSTRY. SMA’S ANSWER TO DEMAND FLUCTU ATIONS AND AN UNCERTAIN CLIMATE? FLEXIBILITY.

IN MOTION // FOR SMA EMPLOYEES; THE FACT THAT EVEN A LARGE CORPORATION CAN BE FAST AND FLEXIBLE ISN’T

A QUESTION – IT’S A STATEMENT.

FIRST! // RAPID GROWTH, AN EXTREMELY DYNAMIC MARKET ENVIRONMENT, AND EMPLOYEES HELD IN HIGH ESTEEM.

HOW TO BECOME A “GREAT PLACE TO WORK®” – AND STAY ONE.

MORE SOLAR ELECTRICITY ENTERING THE GRID // GRID OPERATORS HAVE TO BE FLEXIBLE, TOO. LIKE WHEN IT COMES

TO INTEGRATING SOLAR POWER PLANTS’ DAILY FLUCTUAT-ING OUTPUT INTO THE GRID IN THE BEST WAY POSSIBLE.

WHEN THE RIGHT EXPERTS COME TOGETHER, THE SOLUTION IS CALLED SOLAR FORECASTING.

BRING ON THE FUTURE // THE U.S. IS CATCHING UP AND CURRENTLY HOLDS THE POTENTIAL TO BECOME THE

WORLD’S LARGEST SOLAR MARKET.

IMPRINT //

｢ 06 ｣ SMA MAGAZINE

SMA MAGAZINE ｢ 07 ｣

CHANGE. GROWTH. COMPETITION. // WHEN THE MARKET CALLS FOR IT, FLEXIBILITY CAN MEAN REORGANIZING A COMPANY FROM TOP TO BOTTOM. SMA IS DOING JUST THAT BY CREATING NEW, DECENTRALIZED DIVISIONS FOR GREATER IMPACT AND TO FURTHER GROWTH AS TECHNOLOGICAL LEADER INTERNATIONALLY.

｢｣ Generation change in the making: Günther Cramer, Chairman of the Supervisory Board and previous CEO, in conversation with his successor, Pierre-Pascal Urbon (from left to right).


// INTERNATIONALIZATION IS A STRATEGIC OBJECTIVE AND A CONTINUED FOCUS OF OUR ACTIVITIES. //


Any company that hopes to maintain its effi cien-cy over the long term needs the right structures. SMA’s top management has chosen to decentral-ize its organizational structure moving away from the previous functional structure while making cli-ents even more of a focal point. The advantages are obvious. Players who are closer to the market can respond more fl exibly to clients’ needs, and are therefore able to analyze activity quickly and more precisely. Decentralized structures encour-age employees to think and act entrepreneurially. This alone creates the energy and drive needed for change. “We are not interested in being a lum-bering tanker,” says former Chief Executive Of-fi cer (CEO) Günther Cramer. “Instead, we want to become a highly effi cient fl eet of speedboats that get us closer to our customers.” Cramer co-founded the company 30 years ago and took on the role as a chairman on the Supervisory Board in May. His successor, Pierre-Pascal Urbon, plans to continue making the internationalization of the company a priority. We spoke with them both about changes in the marketplace, international growth strategies, and “letting go”.

SMA was previously structured by function. Now you are reorganizing the company by divisions. What led to this decision, and what are your goals for the reorganization?

Günther Cramer: There were two main strategic variables: the extremely dynamic nature of the solar energy market and the increasing com-plexities as a result of our rapid growth. Many companies watch as their organization becomes mired in the details of dealing with these things. We, on the other hand, discussed possible strat-egies early on as a Managing Board. We grap-pled with various solutions for over a year be-fore fi nding the right one for SMA. We are not interested in being a lumbering tanker. Instead, we want to meet the competition head on as a fl eet of effi cient speedboats that get us closer to our customers quickly and thereby strengthening our relationship with them. This also allows the Managing Board to concentrate more heavily on the company’s overall strategy.

Pierre-Pascal Urbon: That is right. We have al-ready started. Business operations in the divi-sions are now managed by the Executive Vice Presidents. We have recruited top managers with international sales, technology and manufactur-

ing experieces, both internally and externally, and have brought them onto our management team. This is where we see a great opportunity to reinforce the position of the Power Plant Solu-tions and Off-Grid Solutions divisions and allow them to emerge from the shadow of the Medium Power segment, which has tended to dominate in the past. The system integrators and project engineers working in those divisions have very individualized requirements. The new structures will enable us to meet these to a much greater degree. Moreover, the division-based structures support management and employees to think and act entrepreneurially. We are already see-ing signs of the motivation that results.

Why did SMA decide in favor of a divisional structure? A conventional holding structure would have taken SMA further in terms of autonomy.

Pierre-Pascal Urbon: To increase our effective-ness, the legal autonomy of the divisions is not necessary. Such a step would be more likely to have a negative effect on the feeling of com-munity within the worldwide SMA team. It is im-portant that all divisions are equipped with the functions necessary for taking entrepreneurial action, while leaving room for courageous de-cisions. Our top priority is to respond in future even better to individual customer requests. From now on, the Managing Board will be act-ing as the umbrella that holds together all the divisions and subsidiaries, thus preserving the solidarity and corporate spirit of SMA.

So you expect future growth to come as a di-rect result of the smaller divisions, however, growth will also occur abroad. How is SMA positioning itself there?

Pierre-Pascal Urbon: Internationalization is a strategic objective and a defi nite focus of our resources. This year already, our international share is over 50 percent with rising tendency for the years to come. Through a successful interna-tionalization strategy, we will continue to grow and secure jobs in Germany. It is our goal to be the fi rst inverter manufacturer to tap into new markets. This means we will take an active part in shaping the development phase in young so-lar markets, and thus create effective barriers for competitors. Of course, we will still need to pur-sue the expansion of our existing structures and set ourselves apart from the competition through


innovative technologies. These are the challeng-es which Roland Grebe, our Chief Technology Offi cer, is facing. Together with his team, he is already working on adapting products to meet local requirements and on key future issues such as grid integration and system cost reduction.

Günther Cramer: We have to be very clear about one thing. If we want to ensure the con-tinued growth of photovoltaics, we need to integrate the increasing proportion of energy produced from solar sources seamlessly into the grid. Against this backdrop, the focus of our de-velopment quite clearly lies in the topic of grid integration. In the medium and long term, we must ensure that the feed-in of solar power to the grid goes hand in hand with a high level of grid stability. For this purpose, such innovative solutions as the Sunny Home Manager are in demand. It contributes signifi cantly to optimizing the self-consumption of PV power using smart technologies, and thus takes the burden off the grid. In the fi eld of photovoltaics, this innovation signifi es an important leap forward. Our interna-tional service business will also become more of a priority. We will see very strong growth in this area building on the incredibly solid foundation


we already have in the fi eld. We will be the fi rst company in the solar energy industry to expand this service as an independent business model. This is how we will leverage our large market share in this sector as well.

In addition to assigning responsibility for dif-ferent regions, what other changes are there in the structure of the Managing Board? Will it have the same functions as before?

Pierre-Pascal Urbon: Yes, it will maintain its role in overseeing the functions of technology, sales and marketing, operations, fi nance and human resources. The Managing Board will continue to operate under the philosophy that makes SMA strong – working as a team. It is a huge advan-tage to be able to look at important issues from different perspectives and ultimately use them to develop the ideal solution. This cooperative and contemplative approach is probably ingrained in our DNA, and we would like to continue to cultivate it.

Günther Cramer: You can see this attitude even in the way we discussed the new organizational structure on the division heads level. They came up with many suggestions that went well be-yond our initial ideas and infl uenced our current model. We can now be sure that everyone will support the changes, including the employees, among whom we sense broad acceptance for the new setup. It is quite unusual for a company the size of ours to be able to gain such broad consensus. Compared to other companies, we consciously chose a collaborative path.

While we’re on the subject of different paths, Mr. Cramer, you have been chairman of the Supervisory Board since May and passed the function of spokesman of the Managing Board on to Pierre-Pascal Urbon. Together with the other four members of the Managing Board, he will now guide SMA into the future. Are you finding it hard to let go?

Günther Cramer: Basically, the last 30 years have been one long process of letting go. Even over the course of our strong growth, my col-leagues on the Managing Board and I have consistently delegated responsibility, introduced new structures, and repeatedly reviewed our strategy. Naturally, this is a major step, but we have a top-notch Managing Board that has had suffi cient opportunity to prove what it is capable

of since its expansion in 2009. We have pre-pared the generation change for several years, and that’s why, as the founders, we feel com-pletely confi dent in moving to the Supervisory Board.

Will you remain president of the German So-lar Industry Association?

Günther Cramer: Of course, I am excited to continue my work promoting the success of photovoltaics. All three founders are also in the process of establishing, for the fi rst time ever, foundations that address business models for de-centralized, solar energy supplies in developing countries. At SMA, we have developed the tech-nology to realize an off-grid solar power supply, with both total reliability and exceptional qual-ity. However, what we need are concepts to pro-mote acceptance of this form of decentralized energy supply and to refi nance it. These are the key aspects we hope to work on together through our three foundations.

A broad-based, decentralized power supply fits SMA’s vision of a world where the energy supply comes entirely from renewable sourc-

es, and with a large portion of it contributed by photovoltaics. This is also part of a global shift in energy production. How do you see the industry developing in terms of energy production, particularly in the wake of the tragic events in Japan?

Pierre-Pascal Urbon: The disaster in Japan does not directly translate into high demand for PV plants in Germany over the next quarter. How-ever, it is clear that there is no longer any way to reverse the shift in energy supply. I am sure that over the medium to long term, we will see entire-ly new business models and a radically different market for energy supply. This presents a great opportunity for us to lead the way with our tech-nologies and product solutions by creating and establishing new structures for energy supply – not only in Germany and other industrialized nations, but also in emerging and developing countries, and particularly as the costs of pho-tovoltaics decline. Even today, there are still two billion people in the world without electricity.

Günther Cramer: Yes, I agree with Pierre on that. I think Western governments will be making a shift from fossil power sources because that’s


tion of energy supplied entirely from renewable sources, Germany has a great opportunity to position itself as a technological leader and thus, to market relevant products globally. This is a huge opportunity for SMA and we are going to take advantage of it. As world market leader, we are clearly entitled to supply the technically best product for all plants, all modules and all power classes.

Mr. Cramer, Mr. Urbon, thank you very much for your time and insight.

Maximum proximity to our customers and higher efficiency: The new organizational structure at a glance

SMA Solar Technology AG was previously organized centrally by function. A divisional organizational structure – also known as a unit-

what people want, and no other source will be justifi able anymore. Policy will go the same way, which will make Germany something of a pioneer. We can develop the relevant technolo-gies here and then help to introduce renewable energies worldwide. Smart grids – that is, grids where the inverter is the central component, act-ing almost as the “brain” of each plant – will play a huge role. On the subject of grid integra-tion, SMA is today’s technology leader due to our comprehensive expertise on different levels. And we are making proactive efforts to drive the integration of PV power in the grids forward so that it does not become a bottleneck to the devel-opment of photovoltaics. On top of this, we are taking a very active part in shaping the future of energy – on a political, technological and eco-nomic level. This expertise will also ensure our long-term competitiveness and is a selling point that clearly makes us unique in the market.Pierre-Pascal Urbon: By pushing the introduc-

based organization – shifts the focus toward the needs of individual customers and market requirements. The goal: To work even more closely with customers, improved effi ciency in processes company-wide and unsurpassed cus-tomer service. The new organizational structure has four decentralized divisions: Medium Power Solutions, for the area of private residential sys-tems; Power Plant Solutions for project business in the area of large-scale systems; Off-Grid Solu-tions for off-grid stand-alone power supply; and the Service division, which provides complete support for all service segments. The Corpo-rate Center forms the central “backbone” of the organization and is responsible for general guidelines and for presenting the company as a coordinated, uniform whole. All divisions will be provided with the functionalities necessary for their business operations, such as technology development, sales, purchasing, and produc-tion, thus gaining maximum autonomy.


// OUR TECHNOLOGIES MAKE A GLOBAL ENTRY INTO RENEWABLE

ENERGIES POSSIBLE. //



THE SAME. ONLY DIFFERENT. // THE UNPREDICTABLE MARKET ENVI-RONMENT PLACES HIGH DEMANDS ON COMPANIES IN THE SO-LAR INDUSTRY. AT SMA, ONE OF THE WAYS WE ARE RESPONDING TO FLUCTUATIONS IN DEMAND AND TO THE UNCERTAIN CLIMATE IS BY INCORPORATING FLEXIBILITY INTO EVERY FACET OF OUR COMPANY – IN OUR PROCESSES, IN OUR MANAGEMENT TEAM AND THROUGH THE EFFORTS OF EACH AND EVERY EMPLOYEE.

｢｣ Flexibility as the topic of a current HR campaign: To Markus Beer, Director in Human Resources, stagnation is diametrically opposed to SMA.


Open and fl exible employees have been part of SM

A from the start. Their willingness to adapt has been vital in our setting the pace in the inverter market. Today the company is shifting from a functional to a decentralized structure to enhance our impact and our customer focus. Our employ-ees are becoming key supporters of this change – and as a result are blazing the trail for contin-ued evolution.

SMA employees understand what it means to

be fl exible. As a result of our incredible growth, we have experienced a constantly changing environment with 2,000 new employees in the past two years and demand fl uctuations at a ratio of 1:4. “Flexibility is part of our corporate culture,” says Stephan Piwanski, vice president of corporate human resources. “W

e are accus-tomed to adapting to change rapidly. This time, however, the change is not only taking place within departments or areas, but throughout our entire company.” Small but robust units will be created within new divisions to facilitate an

even stronger emphasis on customized solutions. “Our employees have welcomed the faster de-cisions, shorter reaction times, and the even greater focus on our different customer groups,” sums up M

arkus Beer, one of the project manag-ers ensuring that the restructuring process runs smoothly. “Everyone understands that our cus-tomers – each with unique requirements – are at the heart of what we do.”

What does the customer need?

It is clear that project planners developing mega watt PV power stations have different needs than electricians installing hundreds of rooftop systems each year. The off-grid business, which entails setting up independent, renewable energy power supplies in off-grid areas, requires specifi c technologies and expertise. “PV invert-ers serve as the brains of our system in all three divisions, however we of course still work to fi nd out exactly what the customer needs and act ac-cordingly,” says Jürgen Reinert, who has been in charge of technological development in the new Power Plant Solutions division since M

arch. “That is fl exibility in the purest sense and, of course, this is an important prerequisite for fur-ther growth.” He previously led Research & De-velopment as a board member at the Swedish fi rm Emotron, and is now working with his col-leagues at SM

A to develop solutions for solar power plants.

｢｣ His task: Reducing system costs further by using intelligent technologies.Jürgen Reinert, Executive Vice President Technology, Division Power Plant Solutions.



Global trend towards major solar power projects

“Our customers’ projects around the globe are becoming larger and larger and are now in the hundreds-of-megawatts range,” says Reinert. SMA offers both the central inverter, Sunny Central, for these solar power plants but is also increasingly providing complete solutions. “This is something we will focus on even more in the new structure,” Reinert further explains. “On the one hand, we are pulling out all the stops to re-fi ne our standard solutions by making advances in important areas such as lowering system costs and integrating networks. On the other, we are also supporting our customers individually in ex-ecuting their projects. System Development and Project Planning is a new and separate depart-ment created exactly for this purpose.”

Development and sales teaming up

Another essential component of this strategy is the close collaboration between Development and Sales. “My colleagues in the Medium Pow-er Solutions division and I used to be part of the German sales team and at our sales meetings, we naturally talked about issues that were out-side the scope of the large scale PV plant busi-ness,” explains Anja Marcinczik, key account manager for Power Plant Solutions. “Coopera-tion between divisions is essential. The new struc-ture allows us to work together with the Develop-ment team with much greater precision from the outset thus better setting us up to fi nd the right solutions for our customers. That simply makes us faster and more effective.”

Common goal in production – striving for per-fection

Speed and effectiveness are crucial factors in the production of Sunny Boy, Sunny Mini Cen-tral, and Sunny Tripower inverters. “Our shared goal is to become even more fl exible, shorten lead times and make our quality even better,” says Andreas Schmidt. He is responsible for pro-duction in the Medium Power Solutions division and describes the work they do as “continuously striving for perfection.”“The most important thing is to communicate with our employees about the continual improve-ments and process streamlining, and to incorpo-rate their suggestions for improvements into the process itself,” explains Sabrina Koebberling,

｢｣ Their perspectives on customer requirements: System integrators who plan large-scale PV power stations with SMA are in good hands with Anja Marcinczik.



who is in charge of the production department’s lean unit. At SM

A’s headquarters, she and her colleagues develop standard processes that are then replicated at production sites around the globe. “Through strengthening the partnership we are poised to expand our presence on the international stage,” adds Schmidt.

Closer to international markets

“We have created international sales teams

that, with the new structure, specialize in distinct customer segments around the world,” explains Christian Langen, executive vice president for Sales and M

arketing, Medium Power Solutions

division. “Through the direct interaction with in-ternational teams we receive fi rsthand feedback from each country about the emerging product trends of the future.”

Making decentralized decisions, on site with

the customer

Langen is an international business enthusiast and an energetic sales manager which is why he joined SM

A in March. He had already founded

Conergy AG’s Australian subsidiary and led this rapidly growing company until 2007. He was soon appointed to the board of the TecDAX-listed company as its Chief Sales Offi cer. He was most recently in charge of global sales as a member of the board at Sovello AG. “In Aus-

tralia, at the start of my career I set up a solar wholesaler myself and installed solar systems on roofs from dawn to dusk. That’s where I learned what matters,” says Langen. For him, internation-alizing SM

A’s structures is a key element in the company’s future success. “Foreign markets are increasingly growing at a faster pace than the German market. W

e need decentralized struc-tures to reap the rewards of this growth. After all, the more we expand geographically, the more important it becomes to make decisions locally and close to the customer. W

e have created the optimal conditions for this to happen.”

Off-Grid power supply is a future market with tremendous potential

Our Off-Grid Solutions division specializes in the island inverter and system technology that per-fectly serve the international markets. The Sunny Island, a battery-run inverter creates an inde-pendent power supply for those far away from the power distribution grid. Developing and emerging countries that still have very underde-veloped infrastructures offer marked potential. “M

ost of our customers are smaller system de-velopers who do business around the globe and are often involved in development projects, such as those in Africa,” explains M

ichael Wollny,

who drives business development. Standard so-lutions are not needed in such a niche sector of the market. That is why SM

A is concentrating on

｢｣ Christian Langen is passionate about foresighted management – and Sunny Boy inverters.



individual solutions that function smoothly even in extreme conditions. Wollny is constantly on the road, especially to Africa and Asia, to identi-fy markets of the future and to work with custom-ers to develop them. “I cannot imagine sitting at my desk in Germany from morning to night anymore,” says Wollny. “I have to be on the ground. Contacts are the lifeblood of our busi-ness. We cannot operate without networking on an international level. The new organizational structure helps me do this even better.”

Exceptional service makes the difference

SMA’s Service Global Support Team is always on the go around the world. “Anywhere in the world a system is commissioned or needs repair-ing our technicians are on the scene quickly,” says Wolfgang Royer, who is in charge of Glo-bal Service Operations. “Using our own em-ployees, we provide the same comprehensive service in every country we have branches. That is very unusual for a manufacturer. I am fairly certain that none of our competitors offer any-thing close to this caliber of worldwide service,” says Royer, adding, “actually that is true of ev-erything that we do at SMA.”


｢｣ Around the world with his mobile offi ce: Michael Wollny takes care of stand-alone power supply systems in areas remote from any grid.


IN MOTION // FOR SMA EMPLOYEES, THE FACT THAT EVEN A LARGE CORPO-RATION CAN BE FAST AND FLEXIBLE ISN’T A QUESTION – IT’S A STATEMENT.


// In our day-to-day work, completely new issues crop up all of

a sudden that were not there before. We pay attention to these

issues and tackle them. I have never heard anyone here make

statements like, “This is the way we’ve always done it, and we’ll

continue to do it that way.” Processes are constantly revisited and

adapted in order to meet new requirements. This also allows us to

try out new approaches. //

Stefan Brinck, vice president of human resources in Germany, re-

sponding to the question of how flexibility impacts day-to-day work// We are flexible because we continuously

learn from our experiences and do not rest on

past success. This rather inspires us to drive

further accomplishments. That kind of approach

naturally leads us to question our practices reg-

ularly so that, if necessary, we can improve the

way we do things. To do this requires incredible

flexibility. //

Sabine Weber, director software development

for communication products, on success and

flexibility

// Ther

e is a rec

ipe for fle

xibility at SM

A. Simply p

ut – our

people are g

ood. SMA can b

e consid

ered a good mix o

f

goal-oriented

and quality-consc

ious people w

ho are will-

ing to exp

eriment

. Add to this th

e managem

ent’s fo

cus on

supportin

g its em

ployees. /

/

Wilhelm va

n Butse

lar, sales

manager for SM

A Australia,

responding

to the ques

tion of w

hat SMA’s s

ecret fo

rmula is

for remainin

g flexible

// Corp

orate g

rowth i

s like h

uman

growth –

things

change

. It’s n

ot always

easy t

o remain

adapt

able a

s

a large

compan

y. And

yet, fle

xibility

is a k

ey fac

tor by

which w

e are m

easure

d. When

a cust

omer c

ontact

s

us, we a

re expe

cted to

provi

de hel

p quic

kly an

d in

a stra

ightfor

ward mann

er – at

all tim

es. Ev

en if it

is

10 p.m. on

a Satu

rday in

the midd

le of su

mmer and

the cu

stomer n

eeds a

replac

ement

device

becau

se a

separa

te syste

m has b

een hit

by lig

htning

. Our j

ob is t

o

provid

e serv

ices tha

t fit the

custo

mer’s ne

eds. //

Nico Merte

ns, SM

A custo

mer serv

ice rep

resent

ative,

respon

ding to

the qu

estion

of whet

her fle

xibility

and

growth a

re mutu

ally ex

clusive


// We have become very used to vari-

ations. The way we organize our work

and our processes has almost com-

pletely adjusted to these cycles. That is

part of what defines SMA. However,

we must always bear in mind the chal-

lenges that come with flexibility. //

Gerald Hoehne, vice president of IT,

on how SMA employees meet the

challenge of remaining adaptable

// Thanks to the company’s reorganization, the individual

divisions now have greater autonomy. For me, the col-

laboration with several divisions means we have more

personal responsibility for finding practical solutions

across the boundaries of individual divisions. Ultimately,

flexibility means that I am able to adapt to constantly

changing requirements and circumstances. //

Andreas Herrfeld, Test Center director, on maintaining

autonomy amid changing corporate structures

// In

thems

elves,

const

ructio

n proj

ects fo

r prod

uction

facili

ties a

re no

t flex

ible

thing

s. Once

a pla

n is in

place

, it is

often

diffic

ult to

mak

e majo

r cha

nges,

simply

becau

se the

y mea

n majo

r effe

ct on t

he co

nstruc

tion s

eque

nce, to

o. In

spite

of thi

s, as a

servi

ce pro

vider

for ot

her d

ivisio

ns of

the co

mpan

y, we

need

to rem

ain fle

xible

so tha

t othe

rs – s

pecifi

cally

our c

ollea

gues

from

produ

ction

– can

be fle

xible

as we

ll. Fo

rtuna

tely,

there

is grea

t willi

ngne

ss on

our p

roject

team

to see

othe

r pers

pectiv

es in

an un

biased

man

ner. W

hat’s

more,

decis

ions

are im

pleme

nted q

uickly

becau

se we

often

mak

e deci

sions

togeth

er. //

Konra

d Wun

derlic

h, Fa

cility

Manag

emen

t proj

ect m

anag

er, on

the t

eamw

ork

behin

d the

new

constr

uction

at Sa

nders

häuse

r Berg

// We are flexible in production because we work well

together as a team and we share our knowledge with

each other. Naturally this builds expertise across the

board. Because of this, I can easily jump in for my co-

workers and complete their tasks whenever necessary. //

Ouicem Bouaziz, SMD manufacturing employee, on the

advantages of sharing knowledge


// Flex

ibility

is a ment

al attitude. I

t

makes life

easier

. It allow

s me to

broaden

the ho

rizons o

f my o

wn

experie

nce thr

ough o

ther peop

le’s

opinions a

nd perspecti

ves while

they a

lso ben

efit fro

m what I have

learne

d. What th

is means s

pecifically

for marke

ting is t

hat you h

ave to

leave

your ow

n firmly-h

eld posit

ions

behind

. Only

then w

ill you

be able

to view

and assess a

ll ideas a

nd

perspecti

ves witho

ut bias. T

his is h

ow

we create s

ynergy. /

/

Miguel Pujo

l, SMA Ibe

rica marke

ting

director,

respond

ing to

the ques

tion

about th

e advanta

ges of fle

xibility

// What does

the reo

rganization

of the

company

mean

in term

s of fle

xibility

? It off

ers inc

redible

opportu

nity.

Short d

ecision

-making paths

allow us

to do o

ur jobs

even m

ore eff

ectivel

y. How

ever, in

doing so

we must

make sur

e we d

o not b

ecome co

mpartment

alized in

our res

pective

division

s. Talkin

g to each o

ther is

key. /

/

Hermann

Prawatke, m

anager SMA cus

tomer s

ervice,

on the

advantages o

f the re

organiza

tion// F

or me, f

lexibil

ity defin

itely

means free

dom. I c

an make

my

own d

ecision

s to meet

our co

rpo-

rate cultu

re and missi

on sta

te-

ment. Th

is give

s me th

e opportu

-

nity to

design st

aff deve

lopment

programs th

at are com

petitive

and attractiv

e to bo

th our c

urrent

and future

employ

ees. //

Regina Matthe

ws, direc

tor of

Human R

esourc

es SMA Americ

a

Producti

on, on

her defin

ition o

f

“flexib

ility”

// To me, flexibility means plenty of freedom to

move in my working environment. For example, be-

ing able to plan my daily workflow so it fits for me.

I am not forced unnecessarily into rigid processes.

This is important particularly for the team leaders

in production, who have to aact flexibly and yet

maintain a view of what is ahead. //

Stefanie Adelt, SMD manufacturing team leader, on

“freedom of movement” in production

// As a product manager for Italy, I

simply must have solid knowledge

of the standards, the laws, the dif-

ferent background conditions of the

market, and even the competition. I

am constantly required to adapt my

work to the expectations of Italy and

thus I have to be flexible. Only then

can I act in the best interests of the

company and, ultimately, those of

the customers. //

Edoardo Tognon, international prod-

uct manager for Italy, responding

to the question of where he must be

particularly flexible


｢｣ Frank Hauser is the managing director of the Great Place to Work® Institute in Germany. He is convinced that fl exibility is built on trust.


FIRST! // RAPID GROWTH, AN EXTREMELY DY-NAMIC MARKET ENVIRONMENT DEMANDING MAXIMUM FLEXIBILITY – AND EMPLOYEES HELD IN HIGH ESTEEM. HOW TO BECOME A “GREAT PLACE TO WORK®” – AND STAY ONE.

Employee orientation and ability to change: to Frank Hauser, Managing Director of the Great Place to Work® Institute, this is the key to a com-pany’s long-term success – and these are the very values which make up SMA’s corporate DNA. Proof of the fact that the employees have a high estimation of their company and are among those with the highest job satisfaction in Europe is the fi rst place achieved by SMA in the category “Germany’s Best Employer” in the Great Place to Work® competition. We spoke to Frank Hauser, Jürgen Dolle, Chief HR Offi cer at SMA, and Yvonne Siebert, Works Council Chairwoman, about employee satisfaction and continuity in change.

Mr. Hauser, how do you recognize a “Great Place to Work®”?

Frank Hauser: In a nutshell, a “Great Place to Work®” is a company in which the employees are happy to come to work. In such companies, you usually fi nd a special culture of cooperation characterized by credibility, respect and fairness

on the part of the management. On the other hand also a high degree of employee identifi ca-tion with their work and the company. The em-ployees enjoy working together and the work is perceived as enjoyable. To achieve this, various measures are implemented in different areas, spanning a broad spectrum from open commu-nication and clear targets through to investments in HR development or celebrating successes. At the end, the employee decides if it is the right thing for him or her. The feeling you have on the way to work on a Monday morning is a pretty good indicator of whether you are employed at a “Great Place to Work®”.

SMA has always been near the top in the Great Place to Work® competition, and this year achieved first place in the category of companies with over 5,000 employees. What makes SMA special, and how do you adapt your culture to the ever-changing circum-stances? Is there something you could call a “recipe for success”?

Yvonne Siebert: A culture based on trust is the best precondition for a positive attitude to cop-ing with change. First of all, we expect that our senior executives will always be ready to ad-dress new situations and seek and implement


our turnover in the last year, and in the previous years, too, SMA experienced strong growth. It is extraordinarily diffi cult to progress in a stagnat-ing environment. In that situation, rivalry among colleagues is on the cards. At SMA it’s differ-ent. Here, people can advance their careers fast, every employee has more work than he can cope with. So new employees are made specially welcome. No-one needs to be afraid that the new colleague could encroach on his/her own sphere of responsibilities. On the con-trary. So, together with our corporate culture, this produces a positive working atmosphere and in the end leads also to the good survey results in the Great Place to Work® competition. We at SMA are proud of our company and like working here.

Is there a proven correlation between the sat-isfaction of the employees and the success of the company?

Frank Hauser: Yes, there is. We can demon-strate that the proportion of fully committed and satisfi ed employees in employee-oriented cultures is almost twice as high as that in less employee-oriented cultures. If you then add the organization’s ability to change to the equation, employee-oriented companies also perform with above-average success.

Is it possible to imagine today’s working world without flexible employees?

Jürgen Dolle: In SMA’s case, at least, certainly not. We are acting almost constantly on the basis of uncertain facts concerning the future development of the various markets. On top of this, there are the seasonal fl uctuations. In the best month of the year, we regularly ship three or four times as many devices as in the worst month. It is only possible to cope with such ex-treme requirements if everyone pulls together and are ready to adapt with maximum fl exibil-ity. In job interviews, we strive to convey clearly what a dynamic place SMA is, and we watch out for people who fi t that mindset. It is without doubt not the right environment for everyone.

Yvonne Siebert: Yes, right, not everyone fi ts to SMA. Until a few years ago, we tried to absorb these fl uctuations with our own staff, but that is absolutely impossible today. The colleagues‘ work-life balance suffers, and this applies not only to those working in production. That‘s why

solutions in collaboration with the employees. Our senior executives must have a high ability to explain necessary changes to colleagues. But that‘s only just the start. We also expect that they involve the colleagues en route to these changes and also give them the chance to participate in their implementation.

Jürgen Dolle: Essentially, the principle applies that work should be organized in such a way that the employees are aware of the priorities, that they are willing to take part and make a contribution, and that in the end everyone ben-efi ts. As Yvonne has already pointed out, the senior executives play a key role in this. They are the crucial ambassadors of our corporate culture based on cooperation. And that – if you want to call it so – is our recipe for success. SMA stands for values such as open, construc-tive communication, an atmosphere of respect in our dealings with one another, chances for development, integration in change processes and participation in the success of the company. This is our pledge, and our employees have embraced these values. In return, we expect from our employees responsible business and solution oriented actions, willingness to change and personal commitment. From our senior ex-ecutives, we also expect that in their position as role models they will carry these values forward and develop them further. This is the only way in which we can accomplish the balancing act be-tween constant change and a consistency of the values which are at the heart of our philosophy.

Mr. Hauser, how would you describe the role of senior management in the change process?

Frank Hauser: Staff leadership has a particularly convincing quality when managers constantly show in their own actions the fl exibility and will-ingness to embrace change they would like to see in their staff. Part-time solutions for male se-nior executives who wish to take parental leave, are currently, for instance, a good indicator of the readiness for change exhibited by compa-nies and managements.

SMA has been growing rapidly for years now. With so many new employees, conflicts must surely be inevitable...

Yvonne Siebert: That is not necessarily so. Actu-ally, it’s very simple. SMA is extremely success-ful. We are world market leaders, we doubled




SMA decided on the fl exible temporary work model, so far we haven‘t found any other possi-bility. Since temporary work is such an important tool for us, our temporary employees receive the same wages as colleagues in permanent employment and are just as well integrated. The Works Council constantly backs initiatives to take on temporary workers as permanent em-ployees at SMA, although of course, we have to retain a sense of proportion. No-one knows how the market will develop and how many employ-ees we will actually need.

Mr. Hauser, how would you assess the use of temporary employees to cope with order peaks?

Frank Hauser: For companies needing to deal with such fl uctuations, temporary work is no doubt a practical and helpful instrument. So long as it is used to cover order peaks, it is most-ly viewed as such by the permanent employees, too. As a permanent solution, however, employ-ing temporary employees – as the name sug-gests – is not the answer.

So how can a company maintain its flexibility in the long term?

Frank Hauser: A classical instrument used by companies to preserve long-term fl exibility is the organization of their working time. This is also an indicator of how far a business organization is capable of further development and differen-tiation: working-time accounts, part-time models, trust-based working hours, sabbaticals and other schemes both promote and demand fl exibility on the part of the company and its employees.

Jürgen Dolle: Yes, we set a high priority on the fl exible organization of working time. As a com-pany, we can only expect fl exibility from our em-ployees if we are prepared to grant them free-dom in the organization of their working time. From my point of view, another important point is to offer the employees comprehensive further training opportunities to help them develop their professional skills.

Frank Hauser: Right. If knowledge and skills are kept up to date and the employees do not forget the “art of learning”, they will cope with new tasks and requirements more easily, and they will be generally more prepared to accept such new demands. As Mr. Dolle said right at

the beginning, the key factor in promoting a cul-ture of fl exibility is to foster a broad basis of trust between employees and senior executives, or the company. If as an employee I am given the sense that the company is genuinely interested in my work, my expertise and in me as a person, if I experience a tradition of openness with no neg-ative undercurrents and feel that the company is striving to achieve a fair give and take, I will be far more willing to take the plunge into new and unknown areas. If that is not the case, it will be more diffi cult to motivate employees to greet changes or fl exible solutions. The best conditions for a high degree of fl exibility are created by investing in a culture of trust. And the earlier you start, the better.

Thank you very much for this conversation!

Great Place to Work® Institute – the experts on workplace culture

The Great Place to Work® Institute is a research and consulting company founded in 1991 with headquarters in the USA and independent part-ner offi ces in over 40 countries worldwide. The Institute supports companies in all sectors and of all sizes in systematically monitoring and devel-oping an employee-oriented workplace culture and in raising attractiveness as an employer. Apart from numerous customer-specifi c services, the Institute offers companies the opportunity to evaluate their own workplace culture and their attractiveness as an employer within the framework of the annual Great Place to Work® benchmark studies such as “Germany’s Best Employer”. The current list of best employers is determined in each of the 40 countries each year. The most attractive employers in the eyes of their employees are awarded the Great Place to Work® seal of approval.

｢｣ Best German employer: Yvonne Siebert and Jürgen Dolle are proud of the fi rst place achieved in the Great Place to Work® Award.



MORE SOLAR ELECTRICITY ENTERING THE GRID // IN ORDER TO INTEGRATE THE DAILY FLUCTUATING OUTPUT OF PV PLANTS INTO THE GRID, OPERATORS HAVE TO BE FLEXIBLE TOO. BUT HOW CAN YOU PLAN FOR THE WEATHER? IF YOU CAN FIND THE RIGHT EX-PERTS AND THE DATABASE IS ACCURATE, THE SOLUTION GOES BY THE NAME OF “SOLAR FORECASTING.”｢｣ Moving grid integration of solar power forward: Bernd Engel, Senior Vice President Technology and Development, helped develop the solar

forecast – and he loves fi gures.


If you want more electricity to be supplied from renewable sources, then you have to deal with the issue of grid integration. First, there is the matter of including hundreds of thousands of PV plants in the grid management. It is also im-portant to predict the weather-dependent solar electricity production as accurately as possible, so grid operators and conventional power plants can plan accordingly. To this end, SMA engi-neers sat down with experts from the wind and software industries and are now delivering the data for extremely precise solar forecasts — an interesting task for Ulrich Focken, Thomas Land-graf and Bernd Engel, and an innovative leap for photovoltaics.

It is a cold Monday morning in March. Drivers have to scrape ice from their windshields, and the water lilies are frozen in the ponds in front of SMA’s main entrance. One might guess that this will be a relatively unproductive day for solar electricity generation. Yet the sky is bright blue and the cold temperature actually gives the PV cells an extra boost in performance. Indeed, ev-erything points to a record day, as do the fi gures on the computer screen of Bernd Engel, Head of Development. Around noon, the online map of PV performance displays an intense red through-out, as more than two million PV plants in Germa-ny quietly and inconspicuously generate electric-ity. “Photovoltaics are defi nitely playing a role in the power distribution grid,” says Engel, look-ing at the screen. “Right now, all PV plants are collectively generating almost 12 gigawatts of power. That’s equivalent to about nine large con-ventional block-unit power stations. And it’s just the beginning of March, long before the produc-tive summer season.” In Germany, photovoltaics have reached a size that makes it imperative to deal with the issue of grid integration. At SMA, no one is ignorant of this fact. Bernd Engel, vice president of technology and development, with the support of his 15-member team, is personally driving this issue. For years, the company has been in the forefront of grid integration.

More power output means more responsibility

The conventional energy industry has long con-templated how the daily fl uctuating output of PV plants can be optimally integrated into the power distribution grid. FNN, the Grid Tech-nology/Grid Operation Forum, a work group within the internationally recognized technology association, VDE, has played an important role

in this connection. In this forum, technical special-ists from the grid operators and the renewable energy industry sit down together to revise the connection rules for decentralized electricity producers in a way that makes practical sense. “In concrete terms, this means that PV plants will have to participate more and more in the man-agement of the grid,” explains Bernd Engel. “In addition, when there are problems in the power distribution grid, they will have to intervene to help stabilize it, instead of simply disconnecting as they did before.”But new requirements were also imposed in late 2010 by a completely different party, the German Federal Network Agency. This agency is responsible for regulating various network structures ranging from telecommunication and natural gas networks to the postal and railway systems to the electricity supply grid. In its regula-tion activities, the agency keeps an eye on the service security for the public, as well as on the charges for grid usage and allocations for pro-moting renewal energy. Most recently, last fall it recognized a need for action on behalf of grid operators.

Flying blind in the power distribution grid

The events of September 6, 2010 provide some background. On that clear, sunny autumn day there was too much electricity in the German grid as consumption was markedly less than pro-duction. Over several hours, the entire available mandatory power reserve was needed in order to keep the grid stable. The cause was the totally inadequate forecast for solar power production. At noon, the actual PV output was almost seven gigawatts more than reported by the distribution grid operators just the evening before which cor-responds to about fi ve conventional block-unit power stations running at full power. The higher-level transmission grit operators were completely caught off guard by the amount of electricity sup-plied by solar power installations.

The solution: solar forecasting

The Federal Network Agency reacted quickly. In a position paper, they requested that the approximately 900 German distribution grid operators properly record current PV output in their respective grid areas, and before the next six-month summer period. Current output data is also a prerequisite for forecasting output, some-thing of great interest to the four transmission


grid operators in particular. These operators are responsible for balancing the power within the grid, and have to give the operators of conven-tional power plants binding information about the output required each day. “Without reliable data on current solar power output, regulating the grid will be increasingly diffi cult. That’s why we support the Federal Network Agency’s re-quest and are happy to contribute to solving the problem,” notes Bernd Engel, explaining SMA’s

position. “We are particularly pleased that, with our contribution, for the fi rst time a precise fore-cast of solar power output is possible.” SMA’s contribution consists of providing the data from the Sunny Portal, a powerful computer system that is available to the owners of SMA devices, free of charge, for saving, analyzing and dis-playing data from their respective PV plants. Approximately 50,000 SMA PV plants around the world automatically and regularly send their power output data via an online connection and about half of these installations are in Germany. We are now providing this data in anonymized form to two partners.

A “rule of three” with power and weather

One of the partners is Energy & Meteo Systems, a company from Oldenburg in northern Germa-ny, which has already made a name for itself with wind energy forecasts. The power output of

｢｣ Ulrich Focken is an expert on wind forecasts. He is now involved in the development of solar irradiation prognoses.


almost one-third of the wind turbines in the world is precisely forecasted daily by the 25-person team of physicists, mathematicians, and meteor-ologists. Suncast, the forecast of PV power out-put, promises to be another important pillar of its business. “The problem is very similar; it just showed up somewhat earlier in wind energy usage,” explains CEO Ulrich Focken. The physi-cist was already working with forecasting wind power as part of his doctoral dissertation, when he and a fellow decided to found the company. The Sunny Portal data is also used by SMA’s partner Micromata, a software company based in Kassel, Germany with over 70 employees. Micromata has been developing innovative soft-ware programs for widely varying applications in the energy industry for over 15 years. Based on algorithms from IWES, the Fraunhof Institute for Wind Energy and Energy System Technol-ogy, the new Enercast system precisely predicts the photovoltaic power output in the distribution grids. “The task can be easily explained with the traditional ‘rule of three,’” says CEO Tho-mas Landgraf. “If I know the current PV power output and the current weather conditions, I can then predict the future weather and also future PV power output — that’s the basic principle.” However the problem gets complicated when it comes to the details.

How much solar electricity is in the grid right now?

The biggest problem is that metering techniques cannot measure the power output of all German PV plants at any given moment. This is because many of the more than two million installations are only connected to the power distribution grid and not linked to a communications network. This is where the Sunny Portal data comes into play. “The Sunny Portal records data from approxi-mately 25,000 PV plants in Germany, which cor-

responds to about 13 percent of the PV power output from plants here. That

is suffi cient for a projection with an accuracy exceeding 99 per-

cent,” Engel emphasizes, pointing at his computer screen. “By the way, we also display the PV power output for all of

Germany in real time on the SMA home page.”

The PV output over the course of the day can be viewed

on an animated map for every day since March 2010, and even for specifi c postal codes if de-sired. In contrast, both of SMA’s partners create their power output forecasts for individual distri-bution grids. This makes it possible for the opera-tors of these grids to meet the requirements of the Federal Network Agency. However, at Microma-ta, the vision extends beyond that. “Because of the smart grids envisioned for the future, the big players will be joined by more and more small players, who will become increasingly important and who will need quick and effi cient software solutions,” Thomas Landgraf adds. “For that rea-son, the software system must be designed for everything from a preschool with a PV plant to the large transmission grid operators. Providing forecast data in a web service takes into account not only the grid integration of today, but also the developments of tomorrow.”

Is it going to rain?

For an additional forecast of power output, the specialists now “only” lack data on current and future weather. The quotation marks are justifi ed here because even with satellite images, super-computers, and countless measuring stations, a precise weather forecast is still a real challenge. In addition, each national weather service uses a different data model and calculation procedure


— and each has its own strengths and weak-nesses. When selecting forecasts to be used as a basis for its calculations, Energy & Meteo Systems also draws on its experience in forecast-ing wind power output. “We have developed a system that combines the various weather fore-casts meaningfully,” says Focken. “In weather conditions with a west wind, for example, the French Meteorological Service has the best abil-ity to predict how clouds will drift towards west-ern Germany. On the other hand, in a stable, high-pressure weather situation, we prefer the data from the German Meteorological Service.” By adeptly combining the forecasts, the results are better than using even the best individual forecast. “We actually obtain for more accurate results than by averaging the various weather forecasts,” Focken confi rms.

Finally, there’s the math problem

The most important part of the work comes when the current output data and the current and fu-ture weather data are available thus the calcu-lation for a power output forecast. Because the altitude of the sun and the position and thickness of the clouds are not the only factors that de-termine how much electricity will be generated by a PV plant at a particular point in time. Tem-perature also plays a role, since solar modules produce less power in hot weather than in cold weather. And at a given temperature, wind has

an additional cooling effect, as every bicyclist can confi rm. “It is extremely complex because many parameters factor into the calculation,” confi rms Micromata’s Landgraf. “Though, as software specialists we are optimally equipped to handle this mathematical problem. Further-more, our partners from IWES, the Institute for Wind Energy and Energy System Technology, are absolute experts when it comes to the com-plex interactions between weather conditions and PV installations.” For its handling of the mathematical problem, the Enercast.de web service received Initiative Mittelstand’s 2011 IT Innovation Award in software from a top-fl ight jury of professors, scientists, industry representa-tives and industry journalists. Energy & Meteo Systems has built upon its many years of experi-ence and success with the equally complicated wind energy forecasting. “It has always been clear to us that, sooner or later, there would be very similar requirements in photovoltaics,” notes CEO Focken. “We were well-prepared for that reason, and also quite deliberately sought contact with SMA.” In the meantime, in addition to forecasting power output, the two companies are also offering a forecast of PV power out-put for specifi c hours, organized according to distribution grids and available up to four days in advance. Both forecasts are updated on an ongoing basis and, in the case of the one-day preview, achieve an accuracy of more than 95 percent.

From smart home to smart grid

With these developments, not only are problems like the one on September 6, 2010 no longer an issue, but the entire energy turnaround project benefi ts from the new possibilities. For example, solar power’s “planability” reduces the expense of costly, short-term balancing power. It also avoids negative prices on the Energy Exchange, which are ultimately passed on to the consumer and raise the price of electricity. “Being able to plan solar power also makes intelligent energy management on a household level possible for the fi rst time,” emphasizes Engel, head of Devel-opment. There’s a shiny, silver box lying on his desk — the prototype of a new energy manager. “Upcoming products like SMA’s Sunny Home Manager will be regularly supplied with local solar forecasts. With this device, energy con-sumers with fl exible timing can be turned on at the appropriate time for solar electricity genera-tion, thereby signifi cantly increasing the private consumption portion. Additionally, managing a storage system works considerably better when the system knows the solar electricity production that can be expected.” From household energy management and decentralized electricity stor-age, the intelligent power distribution grid of the future is not far off. It will constitute the fi nal stage of grid integration, and at least for the time being, a fl exibly connected “energy internet,” fed by many renewable energy sources.

｢｣ Left: Current PV output and current weather con ditions are the basis for predicting future PV out put: The classical “rule of three” according to Thomas Landgraf. ｢｣ Right: What is the contribution of photovoltaics in Germany? This is an interesting question, and one to which you will fi nd clear, up-to-the-minute answers on the SMA web site. Here, you can view at any time the total output of all PV plants in Germany installed up to the specifi ed date. The animated graphics clearly demonstrate that photovoltaics already play a signifi cant role in generating electricity in Germany today, and they also show that PV plants contribute decisively to reducing the cost-intensive peak output at mid- day.

http://www.sma.de/en/news-information/pv- electricity-produced-in-germany


BRING ON THE FUTURE // EUROPEAN FUNDING PROGRAMS MADE THE RAPID DEVELOPMENT OF PHOTOVOLTAICS POSSIBLE. NOW THE U.S. IS CATCHING UP AND HAS THE POTENTIAL TO BECOME THE WORLD’S LARGEST SOLAR MARKET.

Endless amounts of space, plentiful sunshine and an enormous demand for energy make the United States the ideal place to use photovoltaics. The coun-try is among the most attractive of the future markets and over the next few years has the potential to replace Germany’s position as the largest market. Businesses, both international and in the U.S., that are in a position to re-spond fl exibly to market changes will be the ones to benefi t. Jurgen Krehnke is a fi rm believer. He has managed SMA’s offi ce in Rocklin, California for the last three years as its President and General Manager.

SMA recognized the strong solar potential in the U.S. eleven years ago and in 2000 opened its fi rst international sales and service center in Grass Valley, California. Jurgen Krehnke joined SMA in 2008 and ever since he

has been working to ensure that “nobody rests on their laurels” at SMA America. The willingness to use renewable energies is growing steadily in the land of opportunity. While the U.S. does not yet have a uniform na-tionwide funding program, individual states are using a variety of funding mechanisms to accelerate the construction of photovoltaic plants. SMA is well prepared to grow with the market.

Mr. Krehnke large-scale PV plant business is becoming increasingly important around the globe. How do you think that the U.S. market will grow?

Renewable Portfolio Standards are currently generating a great deal of mo-mentum in the creation of very large photovoltaic plants in the U.S. These standards dictate that energy providers must generate a proportion of the power they produce from renewable sources either now or at a set date in the future. These requirements vary from state to state. To meet these obligations, American energy fi rms are currently planning a large number


｢｣ Absolutely relaxed with optimal prospects: The U.S. could evolve into the world’s largest PV market. Jurgen Krehnke, General Manager SMA America, is prepared for growth.



of industrial-scale photovoltaic projects with capacities ranging from ten to several hundred megawatts. These are all indications the market is getting ready to explode with opportunity. California has sent a strong message with its call for “33 percent by 2020.” I think that the market for medium- and large-scale PV plants is thus the main growth market in North America. I consider SMA to be a strong provider that brings both expertise in the small plants sector and, above all, is especially well-positioned technologi-cally and qualitatively in the power plant business.

Is it true that in the U.S. SMA is better known as the manufacturer of the Sunny Boy than for large-scale PV plants?

We can certainly do better at publicizing that for the last two years we have been providing high-quality solutions for large-scale PV plants. We are ready to reap the rewards of the signifi cant potential of both small- and medium-scale plants the U.S. market promises. SMA is the only manufactur-er to offer such a comprehensive range of products and in the solar market fl exibility is the be-all and end-all. From a production standpoint, we have ideally positioned ourselves to participate in further growth in all sectors of this enormous market by opening our fi rst international production facility in Denver, Colorado last year.

Of course, other suppliers have the same goal. What sets SMA apart from its competitors in the U.S.?

In addition to our broad product range and our technological edge, we can proudly say that we simply have the best products on the market. Sunny Boy inverters are the workhorses of the American PV home plant business and have excellent reliability. Sunny Tower is increasingly gain-ing acceptance in the commercial sector, and our Sunny Central inverters, which have 800kW of power, grid management functions, and the high-est effi ciency in the industry, are taking a leading role in the large-scale solar power plant business. Yet we must recognize that our competitors are looking over our shoulder and are leaving no stone unturned in their efforts to take market share away from us. We certainly cannot afford to rest on our laurels!

After the U.S. government party change in 2009, the Democrats, led by Barack Obama, launched new large-scale photovoltaic funding ini-tiatives. With this move, the President’s main goal was to create new jobs in the green energies sector. Is Obama’s energy push a viable beginning to a process in which an entire country will have to learn to change its thinking? Without a doubt, President Obama’s comments have raised the profi le of renewable energies and have shown that renewable energies are viewed as a “real alternative,” at least in relatively more progressive areas of the country. There is also a certain degree of disillusionment because it is becoming clear that Obama has to battle political realities and that good will alone is not enough in politics. However, it is quite clear that the U.S. is much greener than it was ten or even fi ve years ago. Of course, we continue to hope for adequate feed-in tariffs. Neverthe-less, even without additional major incentives we are convinced that the solar industry has a real future in the U.S., and particularly if innovation helps lower prices.

｢｣ The production facility in Denver has a capacity of one gigawatt. Worldwide, the SMA plants currently achieve a production capacity of eleven gigawatts of inverter power.


On the subject of innovation and price cuts: The Department of Energy’s SunShot initiative aims to reduce costs for PV plants by about 75 per-cent, to roughly one dollar1 per watt by 2020. Do you think this is realistic, and what is SMA doing to make an ongoing contribution to lowering costs? The target of one dollar per watt is a nice round fi gure that I think will be hard, but not impossible, to reach by 2020. Some module manufacturers are already producing PV modules at around 75 cents per watt, while other fi rms are working hard to make their modules more effi cient, which in turn cuts costs. At SMA, we are developing strategies to build our inverters even more intelligently, thereby reducing the overall costs of a solar plant. For instance, we are working on making installation easier and faster so there is no need for expensive, specialized tools, and we are integrating functions into inverters that previously had to be sold separately at high prices. We have made incredible progress in both areas. In addition, ongoing and targeted improvements to our cost structure are a top priority. We have heard time and again that the U.S. will take Germany’s place as the world’s largest photovoltaic market by 2013, at the latest. Fall-ing module and solar cell prices around the world will supposedly boost demand in a trend that will materialize in the U.S., in particular, with its enormous backlog. Do you share this opinion? A solar market develops if either the fi nancial environment is good enough or if a “green mindset” causes people to use more solar energy for other reasons. Financial incentives in the U.S. are, as I’ve said, rather modest com-pared with the feed-in tariffs that are driving business in Germany, Spain, Italy, France, and now in Ontario, Canada. However, it is true that the U.S. market is still in its infancy. I hope that the concept of electric vehicles gains a strong foothold. The combination of solar roofs and electric vehicles is a real dream team for me. We are prepared for strong growth at SMA America. Our factory in Denver is completely functional and productive. We have great potential to grow rapidly and install additional capacity quickly thanks to strategic partnerships with our suppliers and partners. We are enormously fl exible which is a vital factor to our future success. What is your personal opinion of the global energy revolution? To be honest, I am thrilled and thankful that I am able to help shape positive change in an extremely energy-hungry society like the U.S. It feels great to help people along the road toward independence from oil and other fossil fuels and toward an energy and transportation structure that is driven entirely by renewable energy.

Mr. Krehnke, thank you for talking to us.

1 Approximately EUR 0.74

｢｣ Above: The market for large-and medium-scale PV plants could evolve into the decisive growth driver in the U.S.

｢｣ Right: PV inverters from SMA – the heart of every PV plant, also in the U.S.




Publisher SMA Solar Technology AG // Editor-in-ChiefAnja Jasper // Writers Margarete Glowka / SusanneHenkel / Felix Kever // Photos Andreas Berthel/ Stefan Daub // Circulation 20,000 (German) / 5,000 (Eng-lish) // Frequency bi-annually //

Editorial address SMA Solar Technology AG / Sonnenallee 1 / 34266 Niestetal / Germany / Tel.: +49 561 9522-2805 / Fax: +49 561 9522-2929 /E-mail: [email protected] / www.SMA.de //

Ordering: Want to order additional copies of the SMA Maga-zine? Just write or e-mail us at the editorial offi ce. We will send you up to 50 copies free of charge.

Texts and images refl ect the current state of technology at the time of printing. No responsibility is taken for the correctness of this information. Subject to tech-nical alterations. No liability for typographical errors. Printed on chlorine-free paper. All trademarks recognized, even where not expressly indicated. A lack of identifi cation does not mean that a product or symbol is not trademarked. Reproduction, even of excerpts, only with written approval by the publisher.

© Copyright 2011, SMA Solar Technology AGAll rights reserved.

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SMA MAGAZINE 04 · 2012-04-04 · sma magazine 04 the same. only different. // topic: flexibility / change. growth. competition. // flexibility can mean reorganiz-ing a company from