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MLPE Suppliers Go Vertical

Nov. 9, 2016
Trend addresses growing customer demand for purchasing fewer parts for their solar system.

There’s a growing trend among module level power electronics (MLPE) suppliers to vertically integrate their products into solar AC and smart modules in an effort to increase sales.

According to PV Magazine’s Ian Clover, this shift from standalone marketing to integrated systems will underpin a doubling of the market by 2020. IHS’ recent Technology PV Microinverter and Power Optimizer Report forecasts revenue for smart and AC modules to rise to almost $500 million by 2020 from a base of below $100 million in 2015.

“This new, all-in-one sales tactic meets growing customer demand for purchasing fewer parts for their solar system, and the market is beginning to adapt to meet that demand,” says IHS Technology’s Cormac Gilligan.

The market for such integrated products remains relatively small, at just under 200 MW in 2015. However, this trend will drive it to beyond 4 GW by 2020 as integrated products become the preferred option in many global markets, according to IHS. 

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