Revenues of CNY19.5 billion (US$3.1 billion) will be available to solar PV balance-of-systems suppliers in the Chinese solar market for 2013, according to NPD Solarbuzz.
With a served addressable market of CNY5 billion by 2017, inverters will continue to provide the greatest revenue opportunity for balance-of-systems suppliers. Power ratings above 250kW will account for more than 50% of sales. Revenues from mounting and tracker systems are forecast to exceed CNY3 billion in 2013. Fixed tilt-angle solutions will contribute 90% of those revenues.
"Previously, the supply of balance-of-systems components to the China end-market was dominated by domestic inverter and mounting component suppliers," according to Steven Han, analyst at NPD Solarbuzz. "However, with revenues projected to grow to CNY25 billion by 2017, the Chinese end-market will soon offer the most lucrative opportunities for global balance-of-systems suppliers."
The strong growth of balance-of-systems revenues within China is being stimulated by aggressive solar adoption targets set by the China government. Solar demand from China is currently forecast to exceed 7GW during 2013, representing 150% on-year growth. The ground mount segment will continue to dominate solar demand with a market share of 57% in 2013, driven by large-scale commercial and utility projects in the Northwest region.
Until now, China-based solar balance-of-systems revenues have been dominated extensively by local suppliers. Indeed, China's 12th Five-Year Plan called for an increase in domestic manufacturers to supply critical components for installed solar PV systems. Over the past few years, more than 100 new inverter suppliers have emerged within the China market. This has created strong internal competition and also made it particularly difficult for overseas suppliers to break into the China end-market. However, Han noted, "The competitive landscape is set to change, with China-based balance-of-systems suppliers having to adapt to rapidly declining prices while addressing new and emerging threats from both domestic and overseas suppliers."
In addition, upstream solar wafer, cell, and module manufacturers in China are now accelerating expansion into the balance-of-systems segment to complement their push into downstream project development and operations. Also, overseas inverter suppliers are forging partnerships and supply agreements with domestic companies to gain access to China's solar PV systems market and to compensate for softening solar demand growth rates across Europe.
"Understanding system installation types and component supply-chains across China has become essential for any balance-of-systems supplier looking for 2013 revenues," said Han. "With a project pipeline in excess of 35GW, hundreds of solar opportunities are yet to finalize their choice of balance-of-systems suppliers."
