Global Solar Inverter Market

Success in the burgeoning market for power inverters will hinge upon suppliers’ capability to provide the lowest long-term costs and their short-term wherewithal to source sufficient quantities of key components, according to Photovoltaic (PV) research from iSuppli Corp.
Solar inverters, also known as PV inverters, are electronic systems that convert the DC power generated by solar panels into AC power that is needed for local use or to the power that can be fed into the electricity grid. An inverter is half power management system and half embedded computer.
Global inverter shipments are set to exceed 23.3 million units by 2014, up by a factor nine from 2.6 million in 2010, as presented in the attached figure. Revenue will rise to $8.9 billion in 2014, up from $5.3 billion in 2010. “Solar inverters are on track to become one of the world’s highest-volume ruggedized electronic systems,” said Greg Sheppard, chief research officer for iSuppli.
Despite such soaring demand, the average price per watt for inverters worldwide will decline 13.5 percent this year. In particular, Asian suppliers are trying to drive prices down with lower costs, Sheppard noted, even though they have been challenged to deliver bankability—i.e., the capability to provide a lower Total Cost of Ownership (TCO).
“Besides the upfront acquisition cost, other competitive factors will separate the winners from losers during the next few years,” Sheppard observed.