In June 2024, the export volume of solar inverters hit a new high for H1, with the Asian market performing particularly prominently [SMM Analysis]

Recently, the General Administration of Customs released the import and export data for solar inverters for June 2024. According to customs data:

In June 2024, the export volume of solar inverters was 5.8549 million units, up 18% YoY and up 25.2% MoM; the import volume was 244,600 units, up 47% YoY and up 25.5% MoM. From January to June 2024, the cumulative export volume was 25.2186 million units, a YoY decrease of 14.8%.

By province:

Zhejiang's cumulative export was 2.9664 million units, up 65.8% YoY and up 43% MoM. The main producers include Ginlong, Deye, Hoymiles, APsystems, and Aiswei;

Guangdong's cumulative export was 1.5862 million units, down 12.6% YoY and up 0.4% MoM. The main producers include Huawei, Growatt, Chint New Energy, Kstar, and Hopewind;

Jiangsu's cumulative export was 359,900 units, up 64.8% YoY and up 10% MoM. The main producers include GoodWe, Sungrow, and Aiswei;

Anhui's cumulative export was 64,400 units, down 42.3% YoY and up 6.2% MoM. The main producers are Sungrow's domestic base and GoodWe's Guangde factory.

In June 2024, solar inverter exports hit a new high for the year, marking the fourth consecutive month of MoM growth in the global inverter market. Emerging market demand was strong, particularly in Belt and Road countries and regions, with rapid growth in low-voltage household equipment in certain areas.

Although June export trade volume in Europe was still below the peak levels of previous years, it showed a slight upward trend. The overall photovoltaic demand in Europe this year has been poor, with growth slowing due to factors such as falling electricity prices, reduced policy subsidies, and decreased consumer purchasing willingness. Severe electricity oversupply has led to significant price volatility, greatly impacting project returns. Additionally, the impact of holidays and worker shortages in July and August is expected to stall project construction progress, potentially leading to poor subsequent shipment performance, but recovery is anticipated in September.

The Americas market is led by demand from Brazil and the United States. Brazil has moved past the destocking phase, and demand has resumed. The decline in the basic interest rate this year is favorable for project financing, which is expected to drive demand for large-scale projects.

The demand for solar inverters in the African market remains strong. Currently, demand in South Africa is relatively low, mainly due to increased stability in power supply and reduced power outages, which in turn lowers the demand for PV products. However, the continuous decline in prices of products such as PV modules will further boost demand in the South African market. The improvement in economic viability and affordability will continue to attract more users to install PV systems. Besides South Africa, countries like Nigeria, Tanzania, and Mozambique are also transitioning to cheaper clean energy generation.

The share of the Asian region exceeded one-third again, with export trade volume in June increasing by 16.7% MoM compared to May. The high price sensitivity of the Asian market and the demand stimulus brought by the general price drop of PV products are changing the demand structure of the Asian market. The main drivers of demand growth are markets such as India, Pakistan, Singapore, and Thailand. The significant drop in overall prices of PV and energy storage systems has provided households and companies with more economical and affordable renewable energy generation options. Coupled with severe summer heat and rising electricity prices, installing PV and energy storage systems helps alleviate potential power supply tightness in summer and reduces electricity costs. Therefore, the demand for PV shows a clear trend of significant increase.

The export trade volume in the Middle East increased by 19.2% MoM in June. In the Middle Eastern market, Saudi Arabia's imports of solar inverters from China declined in June, but countries such as Turkey, Yemen, the UAE, and Oman performed well. The decrease in the cost of photovoltaic electricity has prompted the region to vigorously develop photovoltaics and energy storage, with economic benefits gradually becoming apparent. Demand in areas that were previously in the low penetration stage has begun to release, especially with the continuous increase in distributed projects. Governments are also planning to build large-scale photovoltaic power plants to support the new model of photovoltaic and energy storage power supply. In emerging markets, solar inverter producers are also improving profitability through customized development and targeted sales. Due to the relatively low market entry barriers and considerable returns, emerging markets will become an important force driving the development of solar inverters.