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

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

June 3, 2026
Avangrid has completed construction of its 166MWdc Tower Solar project in Oregon and connected the facility to the regional transmission grid.
June 2, 2026
PNM has filed a resource plan with the NMPRC seeking approval for 1.69GW of new generation and energy storage capacity.
June 2, 2026
Avaada Group has secured nearly US$950 million in debt financing across three utility-scale renewable energy projects. 
June 2, 2026
US independent power producer (IPP) Vesper Energy has secured US$236 million in debt financing to back a 201MW solar PV project in Texas.
June 2, 2026
Portuguese energy utility EDP will spend €1.3 billion in France to build 1GW of solar, wind and energy storage assets over the next four years.
June 2, 2026
NSW will provide AU$225 million in new funding to support domestic manufacturing of low-carbon products and renewable energy components.

Upcoming Events

Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)
Solar Media Events
June 16, 2026
Napa, USA
Media Partners, Solar Media Events
June 30, 2026
Sacramento, California
Media Partners, Solar Media Events
August 25, 2026
São Paulo, Brazil
Media Partners, Solar Media Events
September 1, 2026
Mexico City, Mexico