Analysis: Solar PV inverter latest status

With the global economic recovery, solar photovoltaic power plant downstream market financing environment gradually improved second half of 2009 began a strong recovery of photovoltaic industry, the global annual installed capacity of 6.5GW. European FIT general decline in the first half assault installation in Europe than expected, our latest estimate of 2010 global installed capacity 9.8GW, an increase of 50%.

Meanwhile polysilicon manufacturers in favor of large-scale expansion of production costs continue to decline, crystalline silicon module prices are expected to decline further; various technical schools mature film plant operating experience, is conducive to mass production, effectively reduce costs. European feed-in tariff cut will help the industry chain transfer to developing countries, to some extent beneficial for Chinese manufacturers, but also indicates that the industry technology, capital re-integration in the world, is conducive to battery costs come down, have some of the industry's development facilitating role.

Photovoltaic systems photovoltaic inverter is the core power conditioning devices, occupy system cost ratio between 10-15%, with a high technological content, the current global market share of the leading SMA occupy 44% of total occupied the second tier four vendors 32% of the market, and the remaining more than 150 companies split the rest of the market.

When polysilicon, component manufacturers to golf badly beaten on the occasion of the meager profits, thanks SMA PV inverters giant scale installation terminal market, in 2008 began to enter the high-margin growth period, nearly 25 percent for two consecutive years EBITmargin.

The next two years the PV inverter industry remains highly profitable stage, with more and more competitors enter, profit margins decline, but thanks to the increase in the total terminal system installed, the industry still maintained rapid growth, brand, technology, services, channels become victory.

Local manufacturers, Dances with Wolves started late because the terminal market, the domestic photovoltaic inverter manufacturers generally small scale, structure and technology, workmanship, performance, stability and other indicators with foreign first-class level of a certain gap, but occupy more than 60% of the domestic market leading enterprises in Hefei Sunshine Power has made great progress, and began to enter the European power market.

With the promotion of domestic policy, it is expected that by 2020 China PV Inverter total demand of at least 18.6GW, market size of over 50 billion yuan, while in 2008 the national PV pure sine wave power inverter output of about 25MW, a huge market space for development. International giants from 2009 began to focus on domestic landing layout, domestic competition will become increasingly fierce.