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"We expect the US to account for 50% of our tracker sales in 2024" – Raúl Morales, CEO of Soltec

Monday, 03/04/2024

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At the GENERA fair held in Madrid, Spain, at the beginning of February, the CEO of Soltec Raúl Morales attended us to explain, among other topics, the company's growth prospects in the US market. 

Soltec has closed the year 2023 with a pipeline of 13 GW of projects in different degrees of progress, in seven countries: Spain, Italy, Romania, Brazil, Colombia, the United States and Mexico. Raúl Morales explains more in this interview.

How is the Spanish energy market?


We see the Spanish market, as it could not be otherwise, with optimism. There is still much to do. There are almost two thirds of all the authorizations that were in the ministry to leave. It is estimated that there are around 20 GW still pending. And that has to be translated into demand from the sector. It is true that there has been a small impasse with the new deadline and this quarter, which was going to be much stronger, will be moved to the second and third. The prospects are simply very good and everything is going to move a little towards the middle of the year, so we must take into account that many things can happen, such as the situation in the Red Sea, or changes in costs in raw materials, issues unpredictable, in short. Furthermore, we believe that the transportation issue is going to stabilize.


What prospects does Soltec have in other markets such as the US and Brazil?


Many too. Brazil is a country that has historically been very strong for us, for many years we have been leaders or in the top 3 and it continues to be a very important market for us. Regarding the United States, this year we expect it to be practically 50% of our sales, at the level of our tracker equipment. In the sector, the United States also represents 50% of the world, excluding China. We are strengthening the team in the United States, with an office in Miami and another in Houston.

What is the most in-demand tracker for the United States?

The SF7, which due to its size, being a 2V, carries more steel per MW than a vertical one, continues to be the best seller in the United States because it adapts very well to slopes, they are shorter trackers and there is a lot of project medium size on the east coast where SF7, having less foundation, is a big seller. At a global level it is also efficient, it continues to represent almost 40% of sales in our portfolio, although it has become a little more expensive compared to the 1V, which has greatly reduced the cost. We believe that we still have a long way to go in the United States.

Soltec's activity in 2023

Soltec has supplied 4.3 GW of solar trackers throughout 2023, 19% more than the previous year in which the company supplied 3.8 GW. With this, the company reaches a record track of 20 GW since it began operating in 2004. The solar tracker supply business stands out for the solidity of the gross margins, reaching 26% throughout the year 2023, and yielding an EBITDA that exceeded 48 million euros, which represents a margin of 8.5%, compared to the margins of 4.7% in 2022.

By region, the United States stands out with 26% of the turnover, Europe (mainly Spain) with 35% of the same, and Latam with 39%. Regarding the operational indicators of the tracker business, the backlog (signed contracts pending execution) reached 470 million euros of contracts for the supply of solar trackers and other additional services. For its part, the pipeline (unsigned contracts, with a certain probability of execution) amounted to 16.8 billion euros.

The energy development and generation business (energy division)

Soltec has closed the year with a pipeline of 13 GW of projects in different degrees of progress, in seven countries: Spain, Italy, Romania, Brazil, Colombia, the United States and Mexico. Of the pipeline under development, 1.4 GW of projects in different degrees of progress have been rotated in 2023, corresponding to projects in Colombia, Denmark, Spain and Italy, generating more than 9.5 million euros in the year . Additionally, these sales will generate earn-outs based on the fulfillment of development milestones in the coming years.

In terms of asset management, the company closed the year with 230 MW in operation, 25 MW of projects under construction and 247 MW of projects that will enter construction imminently.

Image: IE



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