Surge in Solar Inverter Upgrades as Over 90% of Manufacturers Disappear

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

As of May 28, 2025, the photovoltaic inverter market has undergone a dramatic transformation, witnessing the collapse of over 90% of manufacturers. This intense market reshaping has been accompanied by the continuous expansion of operating photovoltaic stations that have been in operation for more than a decade. The lack of maintenance, difficulty in sourcing spare parts, and declining efficiency have collectively prompted the urgent need for inverter upgrades.

For instance, the 50MW and 30MW photovoltaic power stations at He’nan Tan, and the 20MW station at Zhangye Jiaxun Nan Tan, were connected to the grid between 2013 and 2014. They underwent upgrades involving 20 Jiaxun inverters, 19 Yihe inverters, and 149 combiner boxes. Similarly, numerous inverter replacements and upgrades have been carried out at various stations, such as the Huanghe Ge’ermu and the project in Jiuquan, which involved the procurement and replacement of 206 inverters and associated equipment.

From more than 400 manufacturers in 2012, the number has dwindled to just a few dozen today. This dramatic reduction has propelled the inverter upgrade market to grow at a compound annual growth rate of 27%, as reported by Sunshine Power through its specialized digital operation subsidiary, Sunshine Zhiwei.

Government policies have also played a role in promoting the concept of “larger replacing smaller” in the market, particularly noted in the wind power sector. By the end of 2021, the National Energy Administration published guidelines for the renovation and retirement management of wind power plants, initiating a trend of upgrading and replacing older facilities. Similarly, in August 2024, the National Development and Reform Commission and the Energy Administration issued a plan to promote the large-scale updating and recycling of photovoltaic equipment, encouraging the replacement of key components such as inverters and modules.

Despite the absence of overwhelming events akin to those seen in the wind power sector, the photovoltaic upgrade process has already begun, driven primarily by the surge in photovoltaic capacity and its impact on the grid. As a result, inverters, acting as the “brain” of the power plants, have become a focal point for upgrades.

According to Sunshine Zhiwei, earlier inverters had limited functionality, and as grid pressure increased, these older models could no longer meet the demands of smart grid construction. Consequently, most of the current inverter upgrades are necessitated by grid requirements. In 2022, regions like Hebei, Gansu, Ningxia, and Qinghai issued directives mandating upgrades for grid-connected renewable energy stations to enhance frequency and voltage tolerance. For instance, the Qingyu and Shanwu direct current lines have raised performance requirements for existing photovoltaic projects, emphasizing stability and adaptability to grid conditions.

As renewable energy becomes a primary source of power, safety requirements for the grid are also evolving. Starting in 2024, new grid regulations will require upgraded stations to possess 100% reactive power compensation capability, while many older devices only achieve around 30%. Moreover, safety protocols will mandate that inverters include arc fault circuit interruption (AFCI), a standard met by fewer than 20% of older devices.

Additionally, the regulatory requirements are extending into the distributed photovoltaic sector. A recent announcement regarding the management of distributed photovoltaic development mandates that both new and existing projects must enhance their grid integration capabilities, ensuring they possess features that are observable, measurable, adjustable, and controllable.

Economic considerations are also driving this shift. Industry insiders believe that the inverter upgrade market has reached an economic turning point, transitioning from “reactive maintenance” to “proactive value addition.” The efficiency of older inverters, typically around 98.5%, has been surpassed by newer models that often exceed 99%. This improvement means that replacing inverters can yield significant increases in energy production over time.

Chint Power, a longstanding player in the market since 2009, emphasizes the differences in technical requirements between partial upgrades (replacing only inverters) and full upgrades (including both inverters and modules). Partial upgrades focus heavily on ensuring compatibility with existing systems, while full upgrades require comprehensive optimization of the entire system.

As of late 2024, China’s cumulative installed photovoltaic capacity is expected to exceed 887GW, with approximately 174GW coming from older plants commissioned before 2018. As growth slows, the photovoltaic industry is shifting focus from expansion to revitalization, with the upgrade market anticipated to drive a significant second growth curve in the sector, potentially generating a market space exceeding 100 billion yuan between 2025 and 2030.

In summary, the transition towards inverter upgrades in the photovoltaic sector is not merely a matter of replacing old equipment; it represents a broader technical revolution, a restructuring of assets, and innovation in energy management.