World Inverter Markets for Renewable Energy Systems

Abstract

Inverter Vendors Need to Match the Pace of Change in the End-user Markets

Inverter demand is completely dependent on the dynamics of the end-user makets. The current upsurge in the installations of the renewable energy market especially solar has translated into a proportionate increase in the consumption of inverters. In 2004 as the Germany upgraded its feed-in tariffs it grew by an astounding 162 percent. Such surge in the demand suddenly caught the vendors to the solar market off guard and there was a shortage of solar cells. On the other hand, there is a strong shift towards the adoption of grid tied systems as the governments have been introducing incentives such as net metering and feed-in tariff based on the power fed back to the utility. In addition to these developments, the emergence of the solar systems as a distributed power generation system has lead to the installation of very high power systems in the 100 to 200 kW ranges. With the propagation of these high power systems the vendors are developing similar inverter capacities in the form of central inverters. With all these changes happening at a very rapid pace due to the extraordinary growth in the market the vendors need to prepare themselves both on the technical aspect and the manufacturing capability aspect.

While the sales incentive programs such as rebates and low interest loans provide the initial spark to trigger off the interest and awareness about renewable energy, the performance based net metering and feed-in tariffs act as steroid that create rapid growth for the inverter demand in renewable energy systems.

The renewable energy systems have always been supported through rebates that reduced the initial cost of installation. Production tax credits on the other hand are meant to encourage the vendors to promote the renewable systems. These incentives managed to trigger off the basic interest in end-users to try out the systems or at least enquire about its capabilities. As the awareness spread to more end-users, the consumption of the inverters also increased. With the advent of superior grid tied inverter technologies, many governments have adopted it to develop performance-based incentives of net metering and feed-in tariffs. As these incentives provided the end-users a constant benefit over a longer period, it was easier to promote and it attracted a larger customer base. Reduction of electricity bills and constant income through these incentive triggers a strong demand for renewable energy systems leading to an equally high demand for inverters used in them.

Performance based incentive programs reward end-users based on the amount of power fed back to the grid increasing the demand for the grid tied inverters.

Grid tied systems continue to contribute a majority of the inverter demand for the renewable energy market. This high contribution from the grid tied inverters is the outcome of the popular net metering and feed-in tariff incentives that require grid connectivity. Out of the three segments in the study the solar market for inverters contributed the highest revenue portion to the extent of 95 percent in the total inverter market for renewable energy in 2004. As the inverter consumption in the wind energy market is restricted to the small scale (below 100 kilowatts) systems, the revenues generated are very low. In the case of the inverters used in fuel cell systems the consumption is very low, as fuel cells are not yet commercialized. However fuel cells are expected to contribute more in terms of inverter consumption once they are commercialized in Japan during 2005.

Table of Contents

• 1. Executive Summary
  • 1. Market Overview
    • 1. Introduction
    • 2. Competitive Analysis
    • 3. Technologies
  • 2. Major Market Findings
    • 1. Opportunities and Forecasts
    • 2. Market Segment Analysis
    • 3. Strategic Conclusions
• 2. Total Inverter Markets for Renewable Energy Systems
  • 1. Market Overview
    • 1. Introduction
    • 2. Market Engineering Measurements
    • 3. Market Drivers
    • 4. Market Restraints
    • 5. Market Challenges
  • 2. Revenue Forecasts and Trends
    • 1. Revenue Forecast for Total Market
    • 2. Technology Trends
  • 3. Revenue Analysis - Geographical Regions
    • 1. North America
    • 2. Europe
    • 3. Asia Pacific
    • 4. Rest-of-World
  • 4. Revenue Analysis - Power Ranges
    • 1. Below 10 Kilowatts
    • 2. Above 10 Kilowatts
  • 5. Revenue Analysis - Grid Connectivity
    • 1. Grid-Tied
    • 2. Off-Grid
  • 6. Competitive Analysis
    • 1. Competitive Structure
  • 7. Frost & Sullivan Awards
    • 1. Frost & Sullivan Market Leadership Award
    • 2. Frost & Sullivan Market Penetration Leadership Award
    • 3. Frost & Sullivan Entrepreneurial Company Award
• 3. World Inverter Markets for Solar Energy Systems
  • 1. Market Overview
    • 1. Introduction
    • 2. Market Engineering Measurements
    • 3. Market Drivers
    • 4. Market Restraints
  • 2. Revenue Forecasts and Trends
    • 1. Revenue Forecasts
    • 2. Technology Trends
    • 3. Pricing Trends
    • 4. Distribution Trends
  • 3. Revenue Analysis - Geographical Regions
    • 1. North America
    • 2. Europe
    • 3. Asia Pacific
    • 4. Rest-of-World
  • 4. Revenue Analysis - Power Ranges
    • 1. Below 10 Kilowatts
    • 2. Above 10 Kilowatts
  • 5. Revenue Analysis - Grid Connectivity
    • 1. Grid-Tied
    • 2. Off-Grid
  • 6. Competitive Analysis
    • 1. Competitive Structure
    • 2. Market Share Analysis
• 4. World Inverter Market for Wind Energy Systems
  • 1. Market Overview
    • 1. Introduction
    • 2. Market Engineering Measurements
    • 3. Market Drivers
    • 4. Market Restraints
  • 2. Revenue Forecasts and Trends
    • 1. Revenue Forecasts
    • 2. Technology Trends
    • 3. Pricing Trends
    • 4. Distribution Trends
  • 3. Revenue Analysis - Geographical Regions
    • 1. North America
    • 2. Europe
    • 3. Asia Pacific
    • 4. Rest-of-World
  • 4. Revenue Analysis - Power Ranges
    • 1. Below 10 Kilowatt
    • 2. Above 10 Kilowatt
  • 5. Revenue Analysis - Grid Connectivity
    • 1. Grid-Tied
    • 2. Off-Grid
  • 6. Competitive Analysis
    • 1. Competitive Structure
    • 2. Market Share Analysis
• 5. World Inverter Markets for Fuel Cell Energy Systems
  • 1. Market Overview
    • 1. Introduction
    • 2. Market Engineering Measurements
    • 3. Market Drivers
    • 4. Market Restraints
  • 2. Revenue Forecasts and Trends
    • 1. Revenue Forecasts
    • 2. Technology Trends
    • 3. Pricing Trends
    • 4. Distribution Trends
  • 3. Revenue Analysis - Geographical Regions
    • 1. North America
    • 2. Europe
    • 3. Asia Pacific
    • 4. Rest-of-World
  • 4. Revenue Analysis - Power Ranges
    • 1. Below 10 Kilowatt
    • 2. Above 10 Kilowatt
  • 5. Revenue Analysis - Grid Connectivity
    • 1. Grid-Tied
    • 2. Off-Grid
  • 6. Competitive Analysis
    • 1. Competitive Structure
    • 2. Market Share Analysis
• 6. Appendix
  • 1. Terms and Definitions
    • 1. List of Abbreviations
    • 2. Glossary of Terms
• 7. Decision Support Database
  • 1. DSD 1
    • 1. Total Electricity Installed Capacity
  • 2. DSD 2
    • 1. Electricity Generation Capacity - Others
  • 3. DSD 3
    • 1. Electricity User Profile - Residential Sector Use
  • 4. DSD 4
    • 1. Per Capita Consumption of Electricity
  • 5. DSD 5
    • 1. Length of Transmission and Distribution Network

List Of Figures

SEGMENT 1

• Inverter Markets for Renewable Energy Systems: Unit Shipment and Revenue Forecasts (World), 2001-2011

SEGMENT 2

• Inverter Markets for Renewable Energy Systems: Market Drivers Ranked in Order of Impact (World), 2005-2011
• Inverter Markets for Renewable Energy Systems: Market Restraints Ranked in Order of Impact (World), 2005-2011
• Inverter Markets for Renewable Energy Systems: Unit Shipment and Revenue Forecasts (World), 2001-2011
• Inverter Markets for Renewable Energy Systems: Percent of Revenues by Geographic Region (World), 2001-2011
• Inverter Markets for Renewable Energy Systems: Revenue Forecasts (North America), 2001-2011
• Inverter Markets for Renewable Energy Systems: Revenue Forecasts (Europe), 2001-2011
• Inverter Markets for Renewable Energy Systems: Revenue Forecasts (Asia Pacific), 2001-2011
• Inverter Markets for Renewable Energy Systems: Revenue Forecasts (Rest-of-World), 2001-2011
• Inverter Markets for Renewable Energy Systems: Percent of Revenues by Power Range (World), 2001-2011
• Inverter Markets for Renewable Energy Systems: Revenue Forecasts for up to 10 kilowatts Power Range (World), 2001-2011
• Inverter Markets for Renewable Energy Systems: Revenue Forecasts for above 10 kilowatts Power Range (World), 2001-2011
• Inverter Markets for Renewable Energy Systems: Percent of Revenues by Application (World), 2001-2011
• Inverter Markets for Renewable Energy Systems: Revenue Forecasts for Grid Tied Applications (World), 2001-2011
• Inverter Markets for Renewable Energy Systems: Revenue Forecasts for Off Grid Applications (World), 2001-2011
• Inverter Markets for Renewable Energy Systems: Competitive Structure (World), 2004

SEGMENT 3

• Inverter Markets for Solar Energy Systems: Market Drivers Ranked in Order of Impact (World), 2005-2011
• Inverter Markets for Solar Energy Systems: Market Restraints Ranked in Order of Impact (World), 2005-2011
• Inverter Markets for Solar Energy Systems: Unit Shipment and Revenue Forecasts (World), 2001-2011
• Inverter Markets for Solar Energy Systems: Percent of Revenues by Geographic Region (World), 2001-2011
• Inverter Markets for Solar Energy Systems: Revenue Forecasts (North America), 2001-2011
• Inverter Markets for Solar Energy Systems: Revenue Forecasts (Europe), 2001-2011
• Inverter Markets for Solar Energy Systems: Revenue Forecasts (Asia Pacific), 2001-2011
• Inverter Markets for Solar Energy Systems: Revenue Forecasts (Rest-of-World), 2001-2011
• Inverter Markets for Solar Energy Systems: Percent of Revenues by Power Range (World), 2001-2011
• Inverter Markets for Solar Energy Systems: Revenue Forecasts for up to 10 kilowatts Power Range (World), 2001-2011
• Inverter Markets for Solar Energy Systems: Revenue Forecasts for above 10 kilowatts Power Range (World), 2001-2011
• Inverter Markets for Solar Energy Systems: Percent of Revenues by Application (World), 2001-2011
• Inverter Markets for Solar Energy Systems: Revenue Forecasts for Grid Tied Applications (World), 2001-2011
• Inverter Markets for Solar Energy Systems: Revenue Forecasts for Off Grid Applications (World), 2001-2011
• Inverter Markets for Solar Energy Systems: Competitive Structure (World), 2004
• Inverter Markets for Solar Energy Systems: Company Market Share by Revenues (World), 2004

SEGMENT 4

• Inverter Markets for Wind Energy Systems: Market Drivers Ranked in Order of Impact (World), 2005-2011
• Inverter Markets for Wind Energy Systems: Market Restraints Ranked in Order of Impact (World), 2005-2011
• Inverter Markets for Wind Energy Systems: Unit Shipment and Revenue Forecasts (World), 2001-2011
• Inverter Markets for Wind Energy Systems: Percent of Revenues by Geographic Region (World), 2001-2011
• Inverter Markets for Wind Energy Systems: Revenue Forecasts (North America), 2001-2011
• Inverter Markets for Wind Energy Systems: Revenue Forecasts (Europe), 2001-2011
• Inverter Markets for Wind Energy Systems: Revenue Forecasts (Asia Pacific), 2001-2011
• Inverter Markets for Wind Energy Systems: Revenue Forecasts (Rest-of-World), 2001-2011
• Inverter Markets for Wind Energy Systems: Percent of Revenues by Power Range (World), 2001-2011
• Inverter Markets for Wind Energy Systems: Revenue Forecasts for up to 10 kilowatts Power Range (World), 2001-2011
• Inverter Markets for Wind Energy Systems: Revenue Forecasts for above 10 kilowatts Power Range (World), 2001-2011
• Inverter Markets for Wind Energy Systems: Percent of Revenues by Application (World), 2001-2011
• Inverter Markets for Wind Energy Systems: Revenue Forecasts for Grid Tied Applications (World), 2001-2011
• Inverter Markets for Wind Energy Systems: Revenue Forecasts for Off Grid Applications (World), 2001-2011
• Inverter Markets for Wind Energy Systems: Competitive Structure (World), 2004
• Inverter Markets for Wind Energy Systems: Company Market Share by Revenues (World), 2004

SEGMENT 5

• Inverter Markets for Fuel Cell Energy Systems: Market Drivers Ranked in Order of Impact (World), 2005-2011
• Inverter Markets for Fuel Cell Energy Systems: Market Restraints Ranked in Order of Impact (World), 2005-2011
• Inverter Markets for Fuel Cell Energy Systems: Unit Shipment and Revenue Forecasts (World), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Percent of Revenues by Geographic Region (World), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts (North America), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts (Europe), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts (Asia Pacific), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts (Rest-of-World), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Percent of Revenues by Power Range (World), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts for up to 10 kilowatts Power Range (World), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts for above 10 kilowatts Power Range (World), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Percent of Revenues by Application (World), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts for Grid Tied Applications (World), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts for Off Grid Applications (World), 2001-2011
• Inverter Markets for Fuel Cell Energy Systems: Competitive Structure (World), 2004
• Inverter Markets for Fuel Cell Energy Systems: Company Market Share by Revenues (World), 2004