CHINA SUN DEMAND TO GROW SUPPLY CHAIN

2013 China PV Demand to Provide US$3 Billion for Balance-of-Systems Suppliers; Overseas Inverter, Mounting, and Tracker Suppliers Prepare to Challenge Domestic Chinese Suppliers for CNY 25 Billion of PV Revenues by 2017…

January 8, 2013 (SolarBuzz)

“Revenues of CNY 19.5 billion (US$3.1 billion) will be available to solar photovoltaic (PV) balance-of-systems suppliers in the Chinese PV market for 2013, according to [NPD Solarbuzz]…With a served addressable market of CNY 5 billion by 2017, inverters will continue to provide the greatest revenue opportunity for balance-of-systems suppliers. Power ratings above 250 kW will account for more than 50% of sales.

“Revenues from mounting and tracker systems are forecast to exceed CNY 3 billion in 2013. Fixed tilt-angle solutions will contribute 90% of those revenues. Revenues from 1-axis and 2-axis trackers are forecast to increase at a 16.9% CAGR until 2017…[W]ith revenues projected to grow to CNY 25 billion by 2017, the Chinese end-market will soon offer the most lucrative opportunities for global balance-of-systems suppliers…”

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“The strong growth of balance-of-systems revenues within China is being stimulated by aggressive PV adoption targets set by the Chinese government. Solar PV demand from China is currently forecast to exceed 7 GW during 2013, representing 150% Y/Y growth. The ground mount segment will continue to dominate PV demand with a market share of 57% in 2013, driven by large-scale commercial and utility projects in the Northwest region.

“Until now, Chinese PV balance-of-systems revenues have been dominated extensively by local suppliers...[M]ore than 100 new inverter suppliers have emerged within the Chinese market…This has created strong internal competition and also made it particularly difficult for overseas suppliers to break into the Chinese end-market…[U]pstream c-Si wafer/cell/module manufacturers in China are now accelerating…into the balance-of-systems segment to complement their push into downstream project development and operations…[and] overseas inverter suppliers are forging partnerships and supply agreements with domestic companies to gain access to China’s PV systems market and to compensate for softening PV demand growth rates across Europe…”

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