Electric issued by the solar modules is DC, must pass the DC to AC, can be connected to the grid or load. The PV inverter device is essential for solar power systems, photovoltaic system costs accounted for about 10% to 13%. 

Europe is the first rise of the global photovoltaic inverter technology is a world leader. Germany the SMA global market share of more than 40%. In addition, several manufacturers in the United States and Japan also has a strong power, more than 70% market share of the world's top five manufacturers. 

Solar end markets due to China's late start, the smaller the size of the domestic PV power inverter manufacturers, domestic PV inverters have a certain gap in technology, performance and stability of the imported products. Domestic PV installation market, mainly from the Energy Bureau of the large-scale PV demonstration power plant and the "Golden Sun Demonstration Project". In 2010 the total set the scale of the second batch of tender power station of the National Energy Board of 280MW, a total of 13 projects. 

Golden Sun demonstration projects on key equipment (PV modules, inverters and reserve battery) by winning the price agreement to give 50% subsidy, other costs of different project types were given a fixed subsidy of 4 yuan / watt and 6 yuan / watt. It is estimated that the Golden Sun Demonstration Project power plant construction costs of approximately $ 7-8 / W recoverable cost of investment from 2010 to 2011.Golden Sun Demonstration Project, the domestic photovoltaic power plants already have a certain degree of profitability, market enthusiasm. 

In addition, on December 2, 2010, the four departments jointly announced through financial subsidies, initiatives such as solar roof project and strongly promote large-scale application of photovoltaic power generation in the country, and strive to 1000MW installed capacity was added in 2012 to protect achieve the 2020 years of cumulative installed capacity target of 20GW. 

PV installed capacity of China's market is facing a turning point, and is about to start. 2010, the domestic photovoltaic newly installed capacity of about 500MW, is 3.5 times 140MW installed capacity in 2009. We expected the new installed capacity of close to 1GW in 2012 is expected to reach 1.5GW in 2011. Per watt of PV inverters from 1.1 yuan to 1.2 yuan price, the next two years, the domestic photovoltaic inverter market size reached 1.1 billion and 1.7 billion respectively. The domestic PV inverter inside the golden period of development. 

For domestic manufacturers, the production of photovoltaic grid tie inverter only assembled after the purchase of the core components to suppliers, Infineon, Semikron, Mitsubishi, Fuji and other international giants. Eliminating the need for complex and expensive production equipment, the smaller fixed investment industry barriers to entry are not high. The next 1 to 2 years, as competition intensifies, with excellent technical skills and a higher cost of control in order to eventually come to the fore. 

PV inverter can be divided into high-power inverters and small and medium-sized power inverter, power inverter technology threshold is far higher than the small power inverter. At present, many domestic manufacturers to enter the field is small and medium-sized power wind inverter technology with foreign manufacturers at the same level. Small power inverter products produced alienation smaller, stability, cost and delivery time of products is the manufacturer of the main areas of competition. 

Delivery of overseas enterprises generally 6 to 8 months, domestic enterprises have a geographical advantage, the delivery time is relatively short. The same time, domestic enterprises producing construction of fast, relatively low labor costs, has a clear competitive advantage in the small and medium power inverter. Power inverter (300KV, 500KV, etc.) due to higher power, the larger challenge of stability. The future PV inverter technology competition in the high-end high-power inverter field. 

The start of the domestic PV installation market, the domestic photovoltaic inverter into the golden period of development. The short term, and took the lead through a quality certification company has a first-mover advantage. PV inverter industry barriers to entry are relatively high, after the huge profits, cost and technical advantages is the business of long-term development of the fundamental. Finalist Golden Sun Demonstration Project KSTAR XJ Electric proposes a focus on listed companies.