German conglomerate Siemens will start manufacturing solar photovoltaic (PV) string inverters in the U.S., specifically designed to serve the domestic market.

The manufacturing facility will be located in Kenosha, Wisconsin. It will be owned and operated by Siemens’ long-time manufacturing partner Sanmina.

Manufacturing is expected to begin in early 2024, with a plan to scale the capacity by 5,200 Blue Planet (BP) TL3 string inverters equivalent to 800 MW annually. The string inverters of 125-155 kW capacity will have a California Energy Commission’s efficiency rate of 99%. They will be designed for a 1,000 or 1,500 Vdc solar array input and utilized for decentralized or virtual central design architectures.

The company also plans to produce utility-scale solar components to meet the demand for localized critical parts for solar PV by community and utility-scale solar developers and infrastructure providers.

Siemens expects to capitalize on the rising local solar component demand in the country coupled with the tax credits available under the Inflation Reduction Act.

According to a recent report by the Solar Energy Industries Association and Wood Mackenzie, solar installations in the U.S. grew 47% year-over-year to 6.1 GW during the first quarter of 2023, driven by a higher demand created through the Inflation Reduction Act and increased utility-scale solar installations.

Ruth Gratzke, President of Siemens Smart Infrastructure USA, said, “This new production line at the Sanmina facility represents Siemens’ strategic priorities to best serve our U.S. customers while being a key partner in our nation’s transition to a more sustainable future. The investments we’re making in communities like Kenosha and the work that we will be doing to bring renewable infrastructure to life will have a crucial impact as we work towards our net-zero goals as a country.”

Siemens has invested $3 billion in its U.S. manufacturing expansion and other strategic merger and acquisition activities over the last four years.

The company’s wind turbine manufacturing arm, Siemens Gamesa, reported a net loss of €2.56 billion (~$2.8 billion) during the third quarter of the financial year 2023 due to significant wind turbine component failures.