Photovoltaics inverter market Inverted times Fronius has been producing and selling on-grid and off-grid During the boom year 2008, the inverter industry saw rapid growth rates. inverters since 1995 and 1999, Despite the economic crisis, manufacturers are now continuing the respectively. Photo: Fronius expansion of production capacities. Attention centers mainly on price cuts and development of new markets. uccess in the solar inverter industry has been The consolidation of our global activities was a key closely connected to the PV sector. With gen­ factor for us”, says Günther Cramer, co­founder and Serous incentives in Spain and Germany and Spokesman of the Board of SMA. UniCredit Bank an­ new sales markets emerging in Italy, Greece and the alysts confirm that SMA has greatly expanded its grip Czech Republic, the year 2008 caused a boom for the on the inverter market over the past years. According­ inverter sector. For the first nine months of 2008, ly, the company’s market shares went up from 25 % British market researcher IMS Research says that in 2006 and 34 % in 2007 to 44 % in 2008, say the turnover increased by 110 % compared to the previ­ analysts. SMA continues its dedication to high­tech ous year. IMS Research estimates that the total mar­ inverter products: “New generations of SMA inverters ket size in 2008 reached US$ 2 billion. That year 80 % will experience price reductions, efficiency increases, of global turnover, says the researcher, was gener­ state­of­the art technology applications and addition­ ated on the European markets. al features to bring down installation and mainte­ In search for an interim balance and an outlook nance costs”, says Volker Wasgindt, Head of Press for 2009, information service provider Europresse­ and Association Work. dienst from Germany surveyed 174 global manufac­ turers for solar on­grid inverters. 33 of the total 71 re­ Positive trends in 2008 spondents offered an insight into their development in 2008 and their expectations for this year’s busi­ The majority of solar inverter manufacturers should ness and the global market. With products in the have been content with their sales in the last year. range of 2,200 MW sold in 2008, SMA Solar Technol­ Inverters Unlimited, Inc. from the United States and ogy AG from Germany continues to reign supreme in Meidensha from Japan are the only companies that 2009. “In 2008, we saw our biggest trade volume as indicate equal sales in 2007 and 2008. All other re­ yet and were able to strengthen our market share. spondents say their companies captured higher sales 116 Sun & Wind Energy 3/2009 Inverter sales worldwide (in MW) Manufacturer 2007 2008 2009e SMA 950 2,200 n/a Kaco new energy 230 480 n/a Fronius 260 450 700 Ingeteam Energy 301 365 n/a Siemens 125 >300 >350 Sputnik Engineering 188 270 420 Power-One Italy 60 197 380 Elettronica Santerno 45 180 240 Kostal Solar Electric GmbH n/a 120 200 Phoenixtec 10 112 140 Riello Power Systems 5 90 n/a Sunways 55.8 86.1 >100 REFU Elektronik 2.5 63 120 Fagor Automation n/a 17 6.5 Steca 5.7 11.4 18 Meidensha 10 10 15 LTi REEnergy GmbH n/a n/a 20 Dünya Prestij Elektronik (DPSolar) 2 5 20 Oelmaier Technology n/a 5 16 Nanjin Green Energy Technology 1 2 2.6 Shanghai Aero-Sharp Electric n/a 1 40 Technologies Pulse Power Technologies 0.2 0.7 3 Inverters Unlimited n/a n/a n/a SMA is by far the largest inverter manufacturer in the market. Source: EuPD Sun & Wind Energy 3/2009 Photovoltaics inverter market Data collection for string inver- ters at the Sputnik permanent testing station in Switzerland Photo: Sputnik compared to 2007. Italian Power­One Italy Spa re­ High expectations in difficult times ports the steepest growth curve of more than 300 %. But also Ingeteam Energy S.A. from Navarre, Spain, To cushion the collapse on the Spanish market along closed a successful year: “The boom of the Spanish with the higher degression rates in Germany and to solar market in 2008 far exceeded our expectations”, secure an attractive return for investors that way, says José Luis González, the company’s Sales module and system prices must see drastic price cuts Manager PV Products. In 2008, Ingeteam was able to in 2009. If not, the sales predictions of the inverter in­ boost its sales by around 20 % compared to the pre­ dustry could be put at risk. vious year. New incentives or emergence of new sales mar­ Asked for their perspective on inverter price trends kets are both perceived as possible scenarios to ease in 2008, 50 % of the surveyed say prices could be re­ the tension in the industry. But the emergence of a duced; indications vary from 3 % (Power­One Italy new solar market with a potential equal to former Spa) to up to 20 % (Fagor Automation S. Coop, Spain). solar paradise Spain is not foreseeable. All the more In the current year, most respondents expect prices to surprising then, the majority of respondents are pos­ further decline by 5 to 30 %. But in order to stay com­ itive that sufficiently strong markets will emerge. At petitive in the ongoing price war, any savings poten­ the same time, experts are realistic that competition tial must be intelligently assessed. Solutronic GmbH will be ferocious. So far, the global market is domi­ from Germany intends to drastically cut its production nated by a small number of players, among them costs by 30 % in the course of the next five years. SMA and KACO new energy GmbH from Germany as Lower inverter prices will be able to contribute to a re­ well as Fronius International GmbH from Austria. In duction of the total system costs. “If system costs 2008, Kaco recorded an enormous demand for its in­ drop by say 20 %, our estimation is that inverter prices verter products that forced the management to rent will follow with a reduction of about 10 %. New gener­ further production space. Kaco’s new plant is mean­ ations of solar inverters will have a fair price while under construction with an investment of € 10 advantage”, says Roland Burger, Product Manager million. Almost all respondents in the survey con­ Inverter at Steca Elektronik GmbH from Germany. ducted by Europressedienst say production capaci­ ties will be expanded in the current year. In inter­ Expectations for the global market in views, experts confirm that the industry has been lit­ 2009 (multiple responses possible) tle impressed by the economic downtrend. Most man­ ufacturers expect a rejuvenating market in the second Number of Trends mentions half of 2009 and in 2010. But also in the long­term, Rising competition 21 prospects are seen as good. The year 2009 from the Consolidation 12 With 500 % capacity growth from 100 MW in the perspective of the manu- Higher production capacities 12 last year to 600 MW, Solutronic GmbH from Germany facturers: rising competi- has been showing the way. Only slightly slower Growing markets 17 tion, new global entrants growth is anticipated by Oelmaier Technology GmbH Shrinking markets 2 and growing sales markets from Ochsenhausen, Germany, and Dünya Prestij New market entries from national enterprises 8 Source: EuPD Elektronik (DPSolar) from Turkey. Both players target New market entries from international enterprises 20 400 % growth to 27.5 and 25 MW, respectively, until 118 Sun & Wind Energy 3/2009 Photovoltaics inverter market the end of the year. Global top dog SMA looks at verter manufacturer Elettronica Santerno S.p.A. trusts lower figures in terms of percentages but not in terms the potential of the domestic market. 55 % of the to­ of absolute numbers. In 2008, the company expand­ tal 180 MW produced in 2008 were sold in Italy. In the ed its production capacities by 150 % to 2.5 GW. In survey, the company says that markets are expected 2009, SMA plans to redouble its capacities, says to grow more mature also in Greece, the United States Volker Wasgindt. The survey suggests that the re­ and South Korea. “We currently have leadership in spondents’ capacities will rise in sum from 8.5 to Italy and Spain and are fourth largest producer of so­ 11.8 GW in 2009 and then be 70 % higher than in the lar inverter products worldwide with a production ca­ previous year. But that is only part of the picture. pacity of more than 30 kW. We are following an ag­ Some experts warn that capacities will by far out­ gressive approach for entering these markets”, says reach the demand. In its “Solar Generation V” report Franco Valentini, Marketing Manager at Elettronica of September 2008, European Photovoltaic Industry Santerno. Association (EPIA) estimates that newly installed ca­ pacities in 2009 will be limited to about 5,160 MW. Global activities – a trump card Growth curve to continue in 2009 Dünya Prestige Solar (DP Solar) from Turkey predicts its key markets will be located in the Middle East, the In the survey, the majority of inverter manufacturers Arab countries and in Cuba. After the company sold do not expect sales to suffer from the higher uncer­ 5 MW of inverters in 2008, the capacity for 2009 is tainties on the market. 19 respondents estimate that projected to quadruple to 20 MW. 40 % of the produc­ sales will continue to increase. Three companies do tion in 2008 was sold to Iraq, 15 % to Israel and 10 % not expect to see dramatic changes on their balance to Cuba. Canan Öztürk, International Sales Responsi­ sheets. Only two companies fear that sales might ble, says sales are expected to be 400 % higher in slump as a result of the overall economic down­ 2009.