A significant change is sweeping the Australian solar industry.
The impact: for the first time in many years, the number one inverter manufacturer is not European in origin.Â
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We see that there’s dramatic changes afoot within the market share of individual manufacturers of both inverters and panels. In the inverter market, the erosion of the leader’s market share is clearly shown in the chart below – what’s also interesting is the ups-and-downs of the manufacturers jostling for position.
As the prices of panels trends upwards, it seems that some manufacturers can temporarily gain market share by being the last to raise their prices. However, this effect isn’t very sticky, as shown by the dynamic moves amongst the market share of individual panel manufacturers in the chart below.
In our current environment, the challenge is that reducing prices also reduces total profit, and many businesses already have narrow margins. It’s a short term focus that can distract solar businesses from addressing the foundational factors that drive profitability: differentiation, sales skills, and business process automation.Â