After 20 years of battle, the competitiveness of China's solar industry has made other countries' solar industries breathless. However, there is a phenomenon I don’t know if solar people have noticed it: In the household solar market, the maturity of the US solar market and the competitiveness of enterprises far exceed China.
The market concentration is very different. In the U.S. household solar investment market, Sunrun, Vivint Solar, Tesla and Sunpower are known as the "big four". Not long ago, Sunrun, ranked number one, acquired VivintSolar, ranked second, achieving a 17% market share in the United States in the first quarter of this year. Whether it is the $3.2 billion purchase price or the last time Tesla's purchase of Solarcity's $2.6 billion purchase price, the scale is above 10 billion yuan; at this time, the Chinese household solar investment market is still extremely fragmented. Pattern. The latest data shows that there are 292,000 solar-related companies in my country, of which Shandong, the largest province in household solar installation, leads with 48,600. Among these enterprises, the registered capital of less than 3 million accounted for nearly half, and the registered capital of more than 10 million accounted for only 22%. In China's solar industry, barriers to entry in the processing market have been established, and there are almost no barriers to entry in the household market.
The U.S. household solar inverter market has formed a duopoly. The market share of the two US household solar inverter companies, SolarEdge and Enphase, has increased significantly from 33% in 2013 to 80% in 2019. In particular, SolarEdge, with its advantages in pairing household single-phase inverters with power optimizers, rapidly increased its market share from 4.5% in 2013 to 60.5% in 2019. At the same time, the market share of other suppliers (such as ABB, SMA and Fronius, etc.) in the U.S. residential solar market fell from 67% to 20.3%. In contrast with the US household solar inverter market, the global market concentration of solar inverters is decreasing year by year. According to CCID Consulting's data, in the global solar inverter market, the market share of the top 5 companies' shipments has dropped from 63% in 2017 to 54% in 2019. The domestic solar inverter market in China is in a relatively fragmented pattern, with brands performing differently in different regions. For example, "Of the nearly 500 solar household dealers in Hebei Province, Growatt and Goodway account for approximately One-third of the market share, and about one-third of the other shares are divided by brands such as Jinlang, Huawei, Sunshine, Sanjing, and Shouhang New Energy."
SolarEdge is even more outstanding in terms of operating performance. Wood Mackenzie’s latest data shows that global inverter shipments in 2019 were 126.7GW, and SolarEdge shipments were 5.62GW, accounting for 4%. But in terms of amount, global inverter sales were 8.586 billion U.S. dollars, and SolarEdge sales were 1.37 billion U.S. dollars, accounting for 16%.
I don't know how long the leading situation in the US residential solar market will last? I thought it would last a long time because the United States has a mature market background. A few years ago, the editor said that China's solar processing industry is the strongest, but it does not mean that China's solar industry will be the strongest in the future. In the future international competition in the renewable energy industry, the biggest competitor of China's solar industry is not the European countries with green development sentiments, nor Japan, which once had the highest solar subsidies, but the United States. Because the United States, as a competitive economy, is far more market-oriented than China. The degree of marketization of a country is the key to the market competitiveness of a country's solar industry after deciding to cancel subsidies.
At present, no matter which country, the possibility of defeating China in the solar processing link does not exist, but in the application link, the market competitiveness of Chinese solar enterprises is obviously inconsistent with the market competitiveness of the processing link. For example, there are constant news about the construction of large-scale solar power plants in the international market, and news about large-scale multinational companies leading investment and construction. However, in these projects, there is either no news from Chinese companies, or Chinese companies play more roles in providing products and EPC services.
Only industries with comprehensive international competitiveness are truly powerful industries. In terms of leading the construction of large-scale international projects, not only the solar industry, but also other industries in China are also lacking due competitiveness. The reason is that Chinese companies' international image, transnational operating capabilities, and international financial market mobilization capabilities are difficult to have corresponding international influence for a while.
China's solar industry is extremely competitive in the world, but it is only a strong processing capacity. It is hard to say that the industry is strong. The household solar market is an abbreviation.
Above news from CHIKO Sales & Marketing department
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