0 items USD 0.00The Global Solar Inverter 麻豆原创 is Reeling Under Price Pressure
The global solar inverter market has received mixed reactions due to changes in government policies and intense competition.
听
Solar PV systems were the first renewable energy technology adopted and implemented by many governments worldwide to provide carbon-less energy with economic incentives. Globally, the residential sector has shown significant enthusiasm in adopting solar photovoltaic (PV) power.
Largest Solar Inverter听Manufacturers in World
- Huawei Technologies Co., Ltd.听
- Sungrow Power Supply Co., Ltd
- SMA Solar Technology AG
- Power Electronics S.L.
- FIMER S.p.A
Globally, China is the largest market for solar PV inverters. The aggressive pursuit of solar by the country led to significant capacity additions over the historic period (2014-2018), with 44.3 gigawatts (GW) installed in 2018 alone. However, the market is expected to slow down significantly with the government opting to reduce solar subsidy for utility scale projects and feed-in-tariffs. The market size in China is estimated to decline at a CAGR of 10.1%, over the forecast period. Similarly, the reduction in feed-in-tariffs and limited scope for expansion of large projects will see the market in Japan decline to 5.4GW in 2023.
听
In June 2018, China sent shockwaves to the global solar markets by regulating the installation cap and a substandard feed-in tariff for solar projects in the country adversely impacting the demand for solar power in the country to 44 GW in 2018 which was 53 GW in 2017. The policy change is the result of a massive subsidy backlog of 120 billion yuan.
听
In contrary to China, in US solar power developers have been stockpiling panels in order to take advantage of the 30-percent solar Investment Tax Credit (ITC) in the country, which, under current legislation, is set to reduce 26 percent in 2020,听 22 percent in 2021, and to drop at permanent 10-percent beginning in January 2022. 听The Solar Energy Industries Association claimed that ITC has added more than 200,000 American jobs, generated USD 140 billion in private sector investment, and solar deployment of up to 10,000 percent since initially starting it.
听
As price pressures are becoming more and more stable, revenue for the top global PV inverter vendors is declining year-on-year.听听
Some manufacturers have contributed to the intensification of price pressures, resulting in the shutdown of major inverter manufacturers. Recently, ABB surprised market pundits when it announced that it was selling its inverter business to Italian-based vendor Fimar. German inverter manufacturer Kako New Energy GmbH sold its central inverter business to Korean developer OCI Power, while German conglomerate Siemens has announced the acquisition of Kako's string inverter business.听
Solar Inverter 麻豆原创 Forecast
The global solar photovoltaic (PV) inverters market is set to decline at a compound annual growth rate (CAGR) of 13.2% and reach USD 3.04bn in 2023, primarily due to a sharp drop in inverter prices and slowdown in solar PV installations, according to GlobalData, a leading data and analytics company.听
听
Asia-Pacific (APAC) accounted for approximately 71% of the inverters installed globally in 2018, followed by the Americas with 16.5% and EMEA with 12.5%. Despite the contraction in its market share, APAC is expected to dominate the market over the forecast period (2019-2023), supported by trends in China, India and Japan.听
听
By 2023, the solar PV inverter markets in America and EMEA will expand to 21.3% and 19.6%, respectively of global installations. The Americas market is greatly influenced by movements in the US market. It is the second largest market for solar PV inverters in the world and is supported by federal and state initiatives such as Sunshot initiative, federal tax credits, net metering and state issued renewable energy goals. The US market is estimated to grow at a CAGR of 2.8% to reach 12.8GW in 2023.听
听
The report reveals that competitive market, economies of scale and removal of subsidies are forcing manufacturers to restructure their prices to retain businesses in a highly fragmented market.
Solar PV Inverters - The Road Ahead
The emergence of supportive policies and regulations to increase solar energy deployment in other countries will propel the solar PV inverter market in Americas. Solar PV is expected to be ramped up in EMEA, particularly in the Middle East driven by government targets and policies encouraging uptake of solar. 听
听
The slowdown in prominent markets will have a moderate impact on the global outlook for solar PV inverters. With renewables becoming integral in governments' development plans, solar PV will be mainstay in the drive towards deploying renewables. Opportunities in emerging markets will arise due to a decline in technology prices and strong support for solar PV to compensate to a certain extent for the drop in installations among leading markets. Competition and evolving market conditions are exerting pricing pressures on manufacturers, driving down inverter prices. Improvement in manufacturing efficiencies and scale of economy will translate into stepper decline in inverter costs for utility scale projects, in comparison to other consumer segments.
听
Related Reports
Global Solar Micro Inverter 麻豆原创 Research Report 2019
Global String Solar Inverter 麻豆原创 Insights, Forecast to 2025
Global Three-Phase Solar Inverter 麻豆原创 Insights, Forecast to 2025
Global Medium Frequency Solar Inverter 麻豆原创 Insights, Forecast to 2025
Global High Frequency Solar Inverter 麻豆原创 Insights, Forecast to 2025
Global Single-Phase Solar Inverter 麻豆原创 Insights, Forecast to 2025
Global Smart PV Array Combiner Box 麻豆原创 2019 by Manufacturers, Regions, Type and Application, Forecast to 2024
Related Energy听Industry Articles
1.听World鈥檚 Top 10 Uninterrupted Power Supply (UPS) Manufacturers
Email a colleague
Printer version
Send by email
听
About The Author
Sudeep Chakravarty
