preface:
From the current market dynamics, the integration of MLPE and components may become the development trend of mainstream products in the future.
MLPE, as a segmented circuit for inverters, has a high industry growth rate and broad market space in the future.
Author | Fang Wen
Image Source | Network
AI Core World | Industry | MLPE Innovation Inverter Market Has Broad Potential Growth Space
Distributed photovoltaic high-speed penetration
Increasing the proportion of renewable energy in China’s total energy consumption is of great significance in achieving the dual carbon goal.
In 2021, China’s photovoltaic power generation reached 325.9 billion kilowatt hours, accounting for less than 4.0% of the country’s total annual power generation. There is still broad room for incremental photovoltaic power generation.
Photovoltaic systems are continuously popularized in fields such as household use and industry and commerce, and the proportion of new installed capacity of distributed photovoltaics globally has significantly increased. Distributed photovoltaics have entered a period of rapid development.
With economic and policy support, the demand for distributed photovoltaics is strong, with the proportion expected to increase from 44% in 2022 to 49% in 2025, and the annual compound growth rate of installed capacity is about 38%.
In 2022, China is expected to add over 50GW of distributed installed capacity, accounting for 60% of the country’s new installed capacity.
In distributed photovoltaic scenarios, MLPE solution has obvious advantages
MLPE, also known as Module Level Power Electronics, refers to power electronic devices that can finely control a single or several photovoltaic modules in a solar photovoltaic system.
Mainly achieve functions such as inverter, monitoring, power optimization, and shutdown, and fine control of photovoltaic modules.
Thanks to the high-speed penetration of distributed photovoltaics, component level power electronics represented by micro inverters have also begun to emerge in the market.
Safety, intelligence, and flexibility have become important measurement standards for photovoltaic inverters, and the technological advantages of MLPE will also become increasingly prominent, with broad market space in the future.
The rapid growth of MLPE is attributed to the increased policy requirements for the safety of photovoltaic power generation systems.
The increase in the proportion of distributed photovoltaics has led to frequent safety issues, and safety is inevitably a systemic factor that governments and users in various regions need to focus on.
The cumulative DC voltage of the entire line in the photovoltaic string can reach a high voltage of 600V-1500V, leading to two major safety hazards: DC high voltage risk and rescue risk.
In response to such safety hazards, many countries around the world have successively issued mandatory regulations or standards, requiring the voltage of components to be reduced to a safe range in a short period of time.
The United States was the first country to propose the concept of component level shutdown and implement relevant mandatory regulations. Subsequently, countries such as Canada, Germany, Mexico, and Australia have introduced policies and regulations, and MLPE solutions will gradually become the standard configuration for global distributed photovoltaics.
MLPE Innovates the Inverter Market
As the power of supporting photovoltaic modules increases, the rated output power of MLPE inverters continues to increase.
The increase in power of individual components enhances product compatibility, directly driving the expansion of MLPE product application scenarios and scope, and accelerating the continuous penetration of products.
In order to reduce the demand for raw materials and components, reduce assembly, integration, and maintenance costs, direct integration of MLPE components into photovoltaic modules has become a new possibility.
From the current market dynamics, the integration of MLPE and components may become the development trend of mainstream products in the future.
MLPE, as a segmented circuit for inverters, has a high industry growth rate and broad market space in the future.
With the gradual maturity of the distributed photovoltaic market, photovoltaic systems will develop towards safer and more intelligent directions, and the technological advantages and value of MLPE will also become increasingly prominent.
Local governments have increased their emphasis on the safety of distributed photovoltaics, and in the future, it is expected to see more cities improve their safety standards, promoting the development of MLPE (component level electronic devices) such as micro inverters, optimizers, and shutoffs in the domestic market.
With the increasing emphasis on distributed photovoltaic security by domestic governments and users, MLPE products continue to reduce costs and increase efficiency.
The development of MLPE products in China is expected to start, and the huge installed capacity in the Chinese market has brought huge space for MLPE development, further expanding the domestic inverter market.
AI Core World | Industry | MLPE Innovation Inverter Market Has Broad Potential Growth Space
There is a large market growth potential for micro inverters
The proportion of distributed photovoltaic installations is relatively high due to the high component prices in 2021, resulting in a higher share of distributed installations with relatively low price sensitivity.
Combined with the maintenance of distributed photovoltaic’s own growth attributes, the proportion is expected to continue to increase in the future. The proportion of distributed services will increase from 44% to 49% in 2026.
The penetration rate of micro inverters in the distributed photovoltaic market is expected to increase from 9% to 19%. It is estimated that the annual shipment of micro inverters is expected to reach 33GW in 2026.
Micro inverters are positioned for the application scenarios of small and medium-sized power bands in photovoltaics, and are suitable for regions with relatively low price sensitivity and focus on application attributes and brands.
Domestic inverter manufacturers are laying out MLPE to continuously reduce costs and increase efficiency. Micro reverse manufacturers are expanding towards high-power and continuously reducing single watt costs.
Domestic micro reverse manufacturers have generally raised their shipping expectations for next year. Hemai Micro Reverse is expected to ship 2.5-3 million units next year, Deye is expected to ship 1.5-2 million units, and Yuneng is expected to ship 8 million+components, both increasing 1-2 times year-on-year.
AI Core World | Industry | MLPE Innovation Inverter Market Has Broad Potential Growth Space
The advantage of micro inverters in the distributed market is amplified
The micro inverter can track the maximum power point of each photovoltaic module separately, and then integrate it into the AC power grid after inversion, achieving fine adjustment and monitoring of the output power of each photovoltaic module.
Micro inverters in the distributed market rely on their advantages in safety, power generation efficiency, reliability, and flexibility, combined with the global photovoltaic module level power electronic security requirements, which continue to deepen.
The penetration rate of micro inverters in the distributed photovoltaic market is expected to increase from 9% to 19%. It is estimated that the annual shipment of micro inverters is expected to reach 33GW in 2026.
Overall, the global micro inverter market is still in the development stage, with highly concentrated suppliers and significant head effects.
Due to the high technical threshold of micro inverters, R&D and design require certain investment, and the speed of technological change is fast, there are certain entry barriers. Domestic publicly traded TVs include Yuneng Technology, Hemai Co., Ltd., and Deye Co., Ltd.
With the prosperity and growth of the MLPE market, combined with the accumulation of previous relevant technology channels, the demand for micro inverters is booming and growing with multi-dimensional support from photovoltaic+distributed proportion+MLPE penetration.
Domestic enterprises have demonstrated strong competitiveness with product iteration and channel cultivation, and their market share is expected to continue to rise, bringing high profit margins to overseas markets.
AI Core World | Industry | MLPE Innovation Inverter Market Has Broad Potential Growth Space
ending:
With the gradual maturity of the distributed photovoltaic market, photovoltaic systems will develop towards safer and more intelligent directions, and the technological advantages and value of MLPE will also become increasingly prominent.
Local governments have increased their emphasis on the safety of distributed photovoltaics, and in the future, it is expected to see more cities improve their safety standards, promoting the development of MLPE in the domestic market such as micro inverters, optimizers, and shutoffs.
Partial information reference: Titanium media: “Photovoltaic inverters usher in a window of new technology change, how can MLPE grow into a large market?” Future think tank: “The Rise of MLPE in the New Situation”https://www.stoneitech.com/
