WoodMac: Solar inverter replacement market to reach 21GW by year-end

October 8, 2019
Facebook
Twitter
LinkedIn
Reddit
Email
According to market research firm, Wood Mackenzie, PV inverters nearing ‘end of life’ replacement are expected to total 21GW by the end of 2019. Image: SMA Solar

According to market research firm, Wood Mackenzie, PV inverters nearing ‘end of life’ replacement are expected to total 21GW by the end of 2019.

Historically, conventional string inverters should have a lifespan of around 10 years, while central inverters, used for utility-scale PV power plants can undergo major component replacements in half that time frame.
 
Wood Mackenzie said that total inverter replacement requirements are expected to account for 3.4% of the global inverter market, heading into 2020, while this would increase to 14% of the total cumulative capacity, over the next five years.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

By 2024, at total of 176GW of PV systems would have inverters older than ten years with replacement costs approaching US$1.2 billion out of a total O&M opportunity of US$9.4 billion.

By 2024, a total of 176GW of PV systems would have inverters older than ten years with replacement costs approaching US$1.2 billion out of a total O&M opportunity of US$9.4 billion. Current annual O&M plant costs were said to be almost US$4.5 billion.

However, inverter replacement costs represent only 12-13% of the average O&M cost when calculated for 50MW solar power system, according to Wood Mackenzie. Inverter cost reductions and slimmer margins for manufacturers have contributed to lowering inverter replacement costs.

Wood Mackenzie is forecasting that the global solar market in 2019 is expected to reach a new high of 114.5GW, an 18% increase from the previous year, while annual PV installations are forecasted to top out in the 120GW to 125GW range through 2024.

PV installations are forecasted to top out in the 120GW to 125GW range through 2024. Image: Wood Mackenzie

Currently, public listed inverter suppliers such as Sungrow Power Supply and SMA Solar Technology do not breakout shipments or revenue related to the emerging replacement market.

Read Next

December 10, 2025
The US solar industry registered its third-best quarter with 11.7GW of new capacity installed in the third quarter of 2025.
Premium
December 9, 2025
Rooftop solar PV generated nearly twice the output of utility-scale solar throughout November 2025, maintaining a 1.9:1 ratio in Australia.
December 9, 2025
German renewables developer Blue Elephant Energy has signed two long-term power purchase agreements (PPA) with the German railway network operator Deutsche Bahn for utility-scale solar power projects.
December 8, 2025
Norwegian renewable energy firm Scatec has signed equity deals for a massive solar-plus-storage project in Egypt and begun operations at a site in South Africa.
December 8, 2025
Proper training and adherence to best field practices are necessary to halt the steady trend of PV connector failures resulting from poor workmanship, write Brian Mills and Grayson Maurer.
December 8, 2025
Swedish independent power producer (IPP) Alight Energy has commissioned a 215MW agrivoltaics project in Denmark.

Upcoming Events

Upcoming Webinars
December 17, 2025
2pm GMT / 3pm CET
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA