Soltec Secures PFE Certification for Solar Trackers
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
soltecsolar-trackers
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Soltec Power Holdings announced on 19 June 2026 that its SF7 single-row solar tracker has received certification for compliance with the Performance and Financial Expectations (PFE) framework. The validation was conducted by an independent engineering firm, a prerequisite for securing non-recourse debt financing on utility-scale solar projects in the United States.
Project finance for renewable infrastructure relies on de-risking technology to attract institutional capital. The PFE standard, established in 2023 by a consortium of lenders and technical advisors, provides a unified set of bankability criteria for solar trackers. Prior to PFE, developers faced a fragmented landscape of lender-specific requirements, which increased due diligence costs and delayed financial closings.
The current macro backdrop features elevated interest rates, with the 10-year Treasury yield near 4.3%. This increases the cost of capital for large-scale projects, making lender confidence in equipment reliability more critical than ever. Soltec's certification directly addresses lender concerns over long-term durability and performance, a key hurdle for projects exceeding 100 megawatts.
The trigger for this announcement is the imminent financial close of several gigawatt-scale projects in the US Southwest that mandate PFE-compliant equipment. Soltec's main competitors, including Nextracker and Array Technologies, secured similar certifications over the past 18 months. This move allows Soltec to compete for contracts on a fully normalized basis with the market leaders.
The global solar tracker market was valued at $5.4 billion in 2025 and is projected to grow at a compound annual growth rate of 15.3% through 2030. Soltec reported 2025 revenue of €458 million, derived from the delivery of 10.7 gigawatts of tracking systems. The company's manufacturing capacity stands at 15 GW annually across facilities in Spain, Brazil, and the United States.
Soltec's SF7 tracker is designed for a 35-year operational lifespan, exceeding the typical 25-year power purchase agreement term. The system's stow tolerance withstands wind speeds up to 90 mph, a key metric for projects in hurricane-prone regions. Certification testing involved over 50,000 continuous cycles of movement under maximum load to simulate decades of operation.
Before certification, Soltec's trackers were excluded from approximately 40% of US utility-scale projects that explicitly required PFE-compliant suppliers. The company's market share in North America was estimated at 8%, compared to Nextracker's 40% and Array Technologies' 25%. The certification removes a significant barrier to entry for the largest project tenders.
The immediate beneficiary is Soltec itself, traded as SOL.MC on the Bolsa de Madrid. The stock has underperformed the iShares Global Clean Energy ETF (ICLN) year-to-date, down 12% versus the ETF's 5% gain. This certification could narrow the valuation gap with US-listed peers by removing a structural disadvantage.
Engineering, procurement, and construction firms like Sterling and Wilcox (STRL) and MasTec (MTZ) gain access to a broader supplier base, which may reduce equipment costs and improve margins on fixed-price contracts. Utility developers such as NextEra Energy (NEE) and Clearway Energy (CWEN) benefit from increased competition among tracker suppliers, potentially lowering capital expenditures for new projects.
A counter-argument is that certification alone may not drive market share gains in a highly competitive landscape. Nextracker's NXT-Horizon tracker holds additional certifications and a larger installed base, providing lenders with more operational data. Soltec must still compete on price, delivery timelines, and service capabilities.
Positioning data shows short interest in SOL.MC had climbed to 4.8% of float prior to the announcement. A sustained squeeze is possible if the news triggers a reassessment of the company's competitive positioning in North America. Flow data indicates institutional buyers have been accumulating shares of ICLN on dips, betting on a cyclical recovery in solar infrastructure spending.
The next major catalyst is the US Department of Energy's Loan Programs Office announcement for new renewable energy projects, expected by 31 July 2026. Soltec's certification makes its customers more likely to receive federal backing, which would directly translate into order flow.
Key levels to watch for SOL.MC include the €2.80 share price, which represents the 200-day moving average. A sustained break above this technical resistance on elevated volume would signal a significant shift in market sentiment. The Invesco Solar ETF (TAN) is testing support at the $60 level; a hold there would indicate broader sector strength.
The Q2 2026 earnings season begins in late July. Listen for commentary from Nextracker (NXT) and Array Technologies (ARRY) on competitive pricing pressures and from utilities like Duke Energy (DUK) on their projected capital expenditure for new solar capacity. Any guidance increase would be a positive signal for the entire tracker supply chain.
The Performance and Financial Expectations framework is a standardized set of technical and financial criteria that solar trackers must meet to be considered bankable by leading project finance lenders. It assesses structural integrity, durability, corrosion resistance, and performance warranties. Certification is conducted by independent engineering firms and reduces perceived technology risk, allowing lenders to offer lower interest rates on project debt.
Soltec's certification intensifies competition in the North American utility-scale solar market. Nextracker and Array Technologies now face a third fully certified competitor, which may pressure pricing and margins. However, the overall effect could be positive for the sector by accelerating the adoption of single-axis tracking technology, which can boost energy output by up to 25% compared to fixed-tilt systems.
Solar panels have established international certification standards like IEC 61215 that have been accepted by lenders for decades. Trackers are complex mechanical systems with moving parts and electrical drives, introducing more potential points of failure over a project's 25-year lifespan. The PFE standard specifically addresses these mechanical and control system risks, which were previously assessed on a lender-by-lender basis, creating uncertainty.
Soltec removed a major barrier to entry for US utility-scale projects, narrowing a key competitive gap with market leaders.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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