Notable Changes in the Australian Panel and Inverter Market!

A significant change is sweeping the Australian solar industry.

SunWiz understands that retailers are being placed under significant price pressures, owing to rising prices of solar panels, falling feed-in tariffs, the impact upon the economy of lockdowns, export limits, and public concerns about the proposed ‘solar tax’.

The impact: for the first time in many years, the number one inverter manufacturer is not European in origin. 

As SunWiz’s MarketView services show, this is just part of a trend in recent months towards lower-priced equipment. 
The chart below illustrates a trend away from European inverter manufacturers towards the leading Chinese inverter manufacturers. Even Module-Level Power Electronics (e.g. microinverters) are losing some market share. 
And the trend is also affecting solar retailers’ choice of panels. The chart below indicates premium panel brands have lost significant market share.


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. 

SunWiz’s MarketView draws upon six sources of market share information that represent over 30% of total Australian installations each month. For more information, click here.