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Philipp Schroeder of Sonnen: „We go onwards and upwards“

How would you assess the business of the past year?

Philipp Schröder: In 2017, we sold 11,000 storage units. By November we had actually sold out our stock. It must be said, though, that business is generally not very stable from month to month – it is very inconsistent. For this year, we hope to see a stabilisation at a high level.

Is the Wildpoldsried factory operating at capacity?

Not yet. We have a facility for final assembly where we put together the battery modules and the power electronics. By working in two or three shifts, we can build many more systems. Our problem is more that we have limited space for warehousing the assembled units ready for sale.

In which markets have you sold storage units?

Three markets were most important for us: the German-speaking countries in Europe, and chiefly Germany itself. But we have also expanded our sales in Italy and Australia. Italy is mostly about single-phase systems; Australia more about three-phase units.

How many systems were you able to sell in Australia?

About 1,400, most of these in the last two quarters. At 38 or 39 cents per kilowatt hour, electricity tariffs in South Australia are very expensive, even compared to the rest of Australia. Power tariffs are structured like mobile phone pricing: peak electricity is very expensive. And there are increasing incidents of grid failure. Seen in combination with the very strong solar irradiation and more than 300 sunny days per year, there are many reasons why the solar and storage markets are currently going through such a boom.

So, storage and photovoltaics are still connected?

Yes. Both markets are closely meshed. In 2017, 200,000 new solar installations have been installed in Australia. That is four times more than in Germany – and Australia only has a population of 24 million. The market is reaching the limit of what can be installed in terms of capacity. The country has a total of two million PV installations. This represents an enormous potential for retrofitting. But so far, our Australian partners have their work cut out to implement all of their PV commissions. Only then will we tackle the storage segment. Once the solar market cools down a bit, we might sell more storage units, mostly to retrofit existing installations.

Given the dimensions you are dealing with, would it not be worth having a factory in Australia?

Sure, we are considering that option. But the inverters that hold the power electronics and the cabinets still come from Europe. And the cells would come from Japan to Australia. So we would have to set up appropriate facilities and most of all find the right people to make the assembly work. That would involve a great deal of initial costs. We will have to evaluate that very precisely.

Other suppliers of storage, with the possible exception of Tesla, are having a hard time in Australia. What is the secret to your success?

You need a great team. Never underestimate the cultural differences as well as the problems that come with being in different time zones. We had established such local teams in the US, Italy and Australia and were very consistent in implementing our partner strategy. That is now paying off. Even though I will be the first to admit that back in 2015 we expected it to be easier. But we managed to enter the market and have had the tenacity to see it through.

How much turnover has Sonnen generated in 2017?

65 million euros, 21 million more than in 2016. That is quite a leap for us. And to answer you next question: This year we are aiming for 100 million euros. For the German market we also expect to see considerable growth, less fluctuation and greater success this year.

How many specialist partners do you have globally?

There are about 450 installation companies in Germany, about 100 in Italy, about 200 in Australia and between 200 and 300 in the US. Overall, we are talking about approximately 1,000 worldwide, all certified by us and connected to us. However, it is important to know that about a fifth of these companies generate around 80 percent of our turnover.

The interview was conducted by Heiko Schwarzburger.

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