SMA Solar cuts 2021 earnings forecast in half following O&M contract issue

Facebook
Twitter
LinkedIn
Reddit
Email
SMA said the O&M contract issue would incur a one-time charge on the company’s earnings in 2021. Image: SMA Solar Technology.

SMA Solar has cut its earnings forecast for the year by more than half pending a contract issue affecting its operations and maintenance business.  

In a statement to the market issued earlier this week, SMA Solar said it had adjusted its earnings guidance for the 2021 financial year, revising it down from a previous forecast of €50-65 million (US$57 – 74 million) to €20-30 million.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The inverter manufacturer said the revision was down to ongoing negotiations between it and a third party in relation to an existing service agreement for its O&M services business, where defects in solar parks maintained by SMA were discovered after the contract was concluded.

Jürgen Reinert, chief executive at SMA, said the possible early dissolution of the agreement was a “unique case” which would have resulted in “unjustifiable expenses” for the company if it had gone on to fulfil its contractual obligations relating to asset performance.

“Accordingly, after thorough consideration, we have decided to aim for a cancellation agreement in order to shield SMA from greater damage. Our decision also expresses our responsible handling of long-term risks for the company as well as our high quality standards,” Reinert said.

Despite cuts to the 2021 earnings forecast, SMA’s managing board has reiterated its confidence in its long-term earnings potential. At the company’s Q3 2021 results in November 2021 SMA pointed towards a bulging order book for the forthcoming year after project delays and pushbacks dented its shipments earlier in 2021.

25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.

Read Next

September 17, 2025
US renewables developer Longroad Energy has reached financial close for its 400MW 1000 Mile solar project in the US state of Texas.
September 17, 2025
Nexamp has secured US$350 million through a long-term financing facility to expand its 6GW utility-scale solar and battery storage pipeline in the US. 
September 15, 2025
Sunrun has priced a securitisation of leases and power purchase agreements, taking its non-recourse debt capital raised in Q3 above US$1.5 billion. 
September 12, 2025
Colombian energy supplier Celsia is seeking more than US$1.2 billion in investment to build wind and solar generation projects in Peru. 
September 12, 2025
ACME Venus Urja has secured INR3.8 billion (US$43 million) to develop and construct a solar-plus-storage project in Barmer, Rajasthan.
September 11, 2025
Madison Energy Infrastructure has raised US$800 million to accelerate the deployment of clean energy assets across the US. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA