Solar Inverter Market Faces Major Shake-Up as Over 90% of Manufacturers Disappear, Driving Surge in Technological Upgrades

Over 90% of Manufacturers Have Disappeared: A Surge in Upgrades for Photovoltaic Inverters!

As of May 28, 2025, the photovoltaic inverter market has witnessed a dramatic shift, with more than 90% of manufacturers vanishing. This upheaval is accompanied by a notable increase in the scale of existing power plants that have been operational for over a decade.

The ongoing evolution of photovoltaic technology, particularly in relation to inverter upgrades, has been driven by the need for improved operation and maintenance, the scarcity of spare parts, and diminishing efficiency. Notably, significant upgrades have been made to various projects, including the 50MW and 30MW photovoltaic power stations in Henan, the 20MW station in Zhangye, and others which have adopted advanced inverter technologies.

According to Sunshine Power, a subsidiary focused on intelligent operation and maintenance, the inverter upgrade market is experiencing an explosive growth rate of 27% per year, indicating a strong demand for modernization in this sector.

Policies have been encouraging the transition from smaller to larger components in both wind power and photovoltaic sectors. For instance, in late 2021, the National Energy Administration released guidelines for upgrading wind farms, which has sparked a similar movement within the photovoltaic industry. In August 2024, the National Development and Reform Commission will introduce a plan aimed at promoting the recycling and upgrading of photovoltaic equipment, focusing on enhancing energy density and land efficiency.

While the wind sector has seen vast upgrades, the photovoltaic domain is also progressing, particularly in response to the increased pressure on the grid. Inverter technology has become a focal point due to its critical role in connecting photovoltaic arrays to the grid.

As the energy landscape evolves, the requirements for inverters are becoming more stringent. Starting in 2024, new regulations will mandate that upgraded plants have 100% reactive power compensation capability, while many existing units only provide around 30%. Furthermore, safety regulations are enforcing standards such as arc fault circuit interrupters (AFCI), with older equipment often failing to meet these criteria.

In particular, distributed photovoltaic systems must now demonstrate enhanced grid integration capabilities. Recent guidelines require that all new and old projects implement features that ensure observability, measurability, controllability, and adjustability by September 2025.

From an economic perspective, the photovoltaic inverter upgrade market has reached a critical juncture. Industry insiders note a shift from reactive maintenance to proactive value enhancement. Early inverters typically operated at about 98.5% efficiency, while newer models often exceed 99%, thereby improving overall energy generation. For example, a replacement can result in an increase of up to 5 hours of electricity generation over a 1000-hour period.

As the market moves forward, the upgrade of inverters is not merely a matter of replacing old equipment; it is an opportunity for a technological revolution, asset restructuring, and innovative energy management.

In conclusion, a staggering 887GW of photovoltaic capacity is anticipated to be installed in China by the end of 2024, with nearly 20% consisting of older power plants. As the industry transitions from expansion to revitalization, the inverter upgrade market is poised to emerge as a key driver of growth, potentially generating over 100 billion in market space between 2025 and 2030.