Development Trends of Photovoltaic Inverters and Energy Storage Inverters

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Photovoltaic inverter

The global demand for replacement of photovoltaic inverters is vast. Photovoltaic inverters are power equipment that converts direct current generated by photovoltaic modules into alternating current and connects them to the power grid. Unlike photovoltaic modules, which have a lifespan of 25-30 years, the actual lifespan of electronic components such as IGBTs in photovoltaic inverters is 10-15 years. Therefore, during the operation cycle of photovoltaic power plants, it is necessary to replace the inverter product at least once, The replacement demand follows the historical installation changes of photovoltaics. It is expected that the replacement demand will be 52GW by 2025, corresponding to a market size of 12.7 billion yuan.

Photovoltaic inverters are generally divided into three categories: centralized, series, and micro inverters.

The market penetration rate of series inverter will continue to rise. According to data statistics from CPIA, the market share of series inverters was 66.5% in 2020, with a year-on-year increase of 7 pct, making it the largest inverter variety. In the future, as the single machine power of series inverters increases, raw material costs decrease, and process technology improves, the price difference with centralized inverters narrows, and the market share of series inverters will further increase.

The safety requirements are gradually improving, and micro inverters are expected to increase significantly in the future. Micro inverters can be connected to single/two/four photovoltaic modules, and each photovoltaic module can be individually connected and subjected to AC/DC conversion, which can meet the requirements of "component level power electronics" independently controlled by a single module. Compared to string inverters or string inverters+circuit breakers/optimizers, they have significant advantages in solving the risks of electric shock, fire, and rescue during operation and maintenance, And the DC voltage level during system operation and shutdown is at low voltage level. Due to the higher grid electricity prices of photovoltaic products in European and American countries, customers have lower price sensitivity to inverter products, and there are relevant policies in Europe and America that require all household photovoltaic installations to be equipped with component level shutdown equipment. Therefore, North America and Europe are currently the two main markets for micro inverters, accounting for a total of 86% in 2020. In the future, if relevant domestic departments introduce relevant laws and regulations that require photovoltaic systems to have component level shutdown functions, downstream photovoltaic installation costs will rise to a certain extent, and the market space for micro inverters will significantly increase in the future.

Energy storage inverter

Photovoltaic distribution and storage promote the rapid development of the energy storage inverter market. The household energy storage system provides the electricity generated by photovoltaic modules to the household load, stores excess electricity to the power grid or in batteries, and uses the energy from the energy storage batteries when needed, thereby playing a role in peak shaving and valley filling, reducing electricity bills, and reducing dependence on the power grid. Energy storage inverters are key components that make up household energy storage systems. Compared to grid connected inverters, they not only convert direct current into alternating current, but also have the function of converting alternating current into direct current. The global market size of household energy storage inverters is expected to be approximately 15.3GW in 2020, with a year-on-year growth of 30%. It is expected to reach 49.1GW in 2022, and it is predicted that there will be a demand of 227.3GW by 2025.

The process of domestic substitution is accelerating, and high gross profit attracts domestic inverters to accelerate their deployment to the sea

At present, the export trend of domestic inverters is obvious, with a compound annual growth rate of 35.52% from 2017 to 2020, and the export amount in the entire 21st year has increased by over 50% year-on-year. Chinese manufacturers have reduced costs and increased efficiency, occupying about 70% of the global market share through price strategies. In addition, due to the relatively mature overseas inverter market, in addition to product prices, more attention is paid to the reliability, brand, and service of the product itself, which has the characteristics of high barriers such as high entry barriers, strict certification review, and long certification cycles. Overseas customers are more willing to accept the high premium brought by product value. Compared to the power station market, which focuses on cost-effectiveness and homogenizes competition in the red sea, there is a significant difference in gross profit margins between domestic and international markets, and it is an inevitable trend for leading enterprises to go overseas.