Sunday, October 20, 2013

Yaskawa Electric profits to increase 2.3X -- 10kW solar inverters help out

I happened to see a note that Yaskawa Electric's forecast net profit for the year ending March 2014 is now 15.5 billion yen, up from an earlier forecast of 12 billion yen and 2.3 times the profit for the prior year.   On the same day, the company announced its actual results for the half year ended September 2013.  Profits more than doubled, to 7.1 billion yen, ... with the primary driver being increased sales of solar PV "power conditioners" as they are known in Japan (referred to as inverters in most markets, since they function to convert power from DC into AC).

Yaskawa makes a wide range of products, and has leading market share in the 10kW solar PV inverter class in Japan.  These "string inverters" are in great demand under the FiT, with few foreign competitors and not much interest from the Hitachi's and TMEIC's of the world either.  In 2012 Yaskawa had over 30% of the Japanese market in 10kW-class inverters,  while Shindengen had another approximately 25%, and Sanyo Electric (not the same "Sanyo" as was acquired by Panasonic in recent years) and GS Yuasa (famous for its batteries) each had under 10%. 

Unfortunately, these 10kW inverters are rated as much lower efficiency than their European counterparts, so the area cries out for new entrants.  Fuji, Hitachi and TMEIC 500kW and larger central inverters are competitive products with those of SMA, Power One or ABB.  So why does an SMA 10kW inverter sold in Europe show a conversion efficiency around 98%, while a Yaskawa 10kW inverter in Japan has a 94% conversion efficiency or lower?  True, the measurement standards are different, but there must be some other reason.  

Is it that the Japanese products are inferior, but foreign products have been kept out by protracted qualification requirements with utilities or for JET certification?  Will the Japanese products improve, as they have in other areas when foreign competition is presented?  Is there some other reason?  Please, if you know, offer a comment.  I find it difficult to understand.

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