Sinovoltaics releases inverter manufacturer financial stability ranking

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From pv magazine Global

Sinovoltaics, a Hong Kong-based technical compliance and quality assurance service firm, has released the second edition of its Sinovoltaics PV inverter manufacturer financial stability ranking. The company said the results, which are calculated since June 2020, provide insight into the stability of the scores over time. The report, which has a global scope, is free to download.

The Sinovoltaics’ financial stability ranking is based on a so-called Altmann Z-score, a quantitative formula that uses multiple corporate income and balance sheet values to measure the financial health of a company. It assesses a company’s financial strength through a credit-strength test based on profitability, leverage, liquidity, solvency, and activity ratios, according to Sinovoltaics.

A score that is 1.1 or lower indicates a higher probability of bankruptcy within the next two years, while a higher score of 2.6 or great

The inverter manufacturers leading the ranking are China’s Hoymiles Power Electronics, U.S.-based microinverter specialist Enphase Energy, Shenzen-based Kstar Science and Technology, Irish energy management specialist Eaton, China’s Goodwe and Sinexcel, Taiwan’s Delta Electronics, Clenergy and Hopewind, both based in China, and Switzerland’s ABB.

“Overall the global PV inverter market has grown steadily in tandem with worldwide solar PV installations. In this regard, we can see in our Sinovoltaics Manufacturer Ranking reports that the vast majority of the inverter makers included are financially healthy or stable,” Niclas Weimar, Sinovoltaics’ chief technology officer told pv magazine, adding that there are two inverter manufacturing trends worth noting.

“One [trend] is that Chinese inverter manufacturers are outpacing their European and U.S.-American peers in terms of global market share, with over 50% shared between Sungrow and Huawei,” said Weimar.

The other trend is that inverter manufacturers, along with many PV module makers, are “tapping into battery energy storage manufacturing” with Sungrow also taking the lead here as measured in MWh shipments, according to Weimar.

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