The Inverter Market: Cheap, Flat and Crowded
...developers and policymakers alike are increasingly focusing on non-module components for cost-cutting initiatives...
...a recent SunRun report shows that standardized local permitting laws could reduce installation costs by $0.50/Wdc. Germany’s balance of systems costs are half of average U.S. balance of systems costs...
...As component supply constraints have eased, plans for capacity expansion have skyrocketed, with announced 2010 year-end capacity reaching over 32 GW (and module manufacturers thought they had a tough environment). This capacity value, however, can be misleading, as inverter throughput is a function of raw material procurement, labor availability (often in the form of temporary workers), and testing bandwidth. Capex costs for new facilities is extremely low -- often below 1% to 2% of final cost of product...
...global electronic conglomerates like GE have adapted existing technology from their wind and other related product lines into solar inverters. These conglomerates will be especially difficult to compete with given their purchasing power and established supply chain, which will allow them to weather downward pricing pressure...
...inverters are the root cause for over 50% of PV system downtime incidents...
On a collision course with traditional inverters (SMA) are micro-inverter and distributed optimization players, whose market grew over 125% in 2010. While Enphase generally receives most of the buzz with its estimated 17% share of the U.S. residential market in 2010, SolarEdge has relatively quietly shipped over 50 MW in the same period...
...though inverters are not resigned to commoditization yet, 2011 will not be a cakewalk.
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