New VDE Rules Impose Stricter Regulations on Inverters in Germany

Author: Matthew Feinstein, Lux Research

Beginning in 2012, solar systems constructed in Germany will have to adhere to VDE 4105. The new regulation requires broadly that grid-connected systems in Germany be capable of active power reduction as output frequencies rise above 50.2 Hz. The regulation explicitly brackets small-scale systems – citing reactive power requirements for systems lower than 3.68 kVA (roughly equivalent to 3.68 kW), 3.68 kVA up to 13.8 kVA, 13.8 kVA to 30 kVA, 30 kVA to 100 kVA, and more than 100 kVA. For the larger systems, power exceeding 4.6 kVA per phase requires the use of three-phase inverters or coupling of three single-phase inverters. Though large-scale systems are included, the regulation forces more action from the industry on the small-scale systems.

Companies like industry-leader SMA and microinverter producer Enecsys have already publicly stated their compliance – of particular importance since both are based in Europe and consider Germany a major target market. In a conversation with Enecsys, the company cited its electrical architecture, and not the use of a thin-film capacitor, for its ability to comply with the regulation. That is important news for microinverter manufacturers, who will need to focus on meeting the new requirement – given that they are most competitive in residential and small commercial systems.

The rule is also evidence of stricter grid regulation in the largest solar market in the world. According to Lux Research's Solar Demand Tracker, Germany's energy market has the highest penetration of solar in the world, increasing to 4% in Q3 2011. If the market is to keep growing in that country, tighter grid standards will need to be adopted – and even further in emerging markets with unstable grids, like India. In all cases, the burden of compliance will be placed on inverter manufacturers – watch for market leaders like SMA and Power-One and microinverter leaders Enphase and Enecsys to begin citing grid compliance more commonly as competitive advantages.

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