Back in 2008 SolarMax became the fifth leading inverter manufacturer for the renewable energy industry. However, last December 2014 the company hit a snag when its parent company, Sputnik Engineering, declared bankruptcy.
Unfortunately, this is not the only instance that an inverter manufacturer suddenly goes out of business. Back in 2012 the company known as Satcon also declared bankruptcy and left many subscribers in doubt in regards to their accounts.
The Head of Technical Operation Management, Martin Neumeyr, stated that obtaining data from the inverters is not really a major concern. There are other means of getting the data such as using intelligent combiner boxes or string monitoring systems.
Inverter Manufacturer SolarMax on the bridge of bankruptcy
The real issue would only arise in case the inverter broke down. When SolarMax was still available, prior to its declaration of bankruptcy, a simple repair was quick and simple. Repairing an inverter at a power facility is significantly more affordable than having to replace one.
However, now that SolarMax is dissolving, the issue arises as to what the options are for consumers when an inverter does break down. Martin Neumeyr lays down both the best and the worst case scenarios:
The best and the worst case scenario for SolarMax consumers
The worst case scenario is when a SolarMax inverter breaks and is still under warranty. There won’t be any SolarMax employees to repair and the costs for replacement parts would be very high. Depending on the power plant, permits and special permissions may also take too long.
On the other hand, the best case scenario is if there is another company that focuses on the same general services of SolarMax. This may make the transferring of responsibilities and repairs much easier, quicker, and more affordable.
What may happen is that the inverter service will be sold to a separate service provider. This is the most likely scenario since the inverters are all still functional and there are warranties that are still in place.
Another scenario that is possible although unlikely is that the former SolarMax employees form a smaller, more concentrated group that focuses entirely on the maintenance of the existing inverters.
The main issue is with the newer inverters. The old inverters from SolarMax are mostly obsolete and their warranties have already expired. The new inverters however will pose a problem because their valid warranties make them hard to repair and replace since SolarMax has gone out of business.
Bankruptcy a real concern for inverter manufacturer due to overseas competitors
Many other European companies are seeing bankruptcy looming over the horizon. It is increasingly likely that there will be mergers occurring in the future and with the Chinese market slowly taking over.
Luckily, SolarMax has only currently filed for insolvency even though its parent company is filing for bankruptcy. This means it is not entirely out of the market just yet.
There are still numerous possibilities how the market may change and adapt. When SolarMax is truly out of business then hopefully similar companies may take up the mantle and purchase the technologies and responsibilities that the team has left behind.
