Corporate Consolidation and Market Trends

The PV industry in the U.S. is characterized by approximately 10 module manufacturers – many of them with backward-integrated operations – that are responsible for the majority of the module supply. In the downstream segment the picture is more complex. Residential system integrators abound in every state and are responsible for a significant portion of the market. However, many of the leading players in the commercial and utility segments are part of larger companies, as are the majority of US PV distributors. While the acquisition of Powerlight by SunPower and of EI Solutions by SunTech appeared unique events several years ago, M&A activity has accelerated swiftly in the last 18 months (Mitsui Trading-SunWize, MEMC-Sun Edison, Sharp-Recurrent Energy, etc.). Several other sizeable market participants are also reportedly pursuing M&A deals.

This development sets the U.S. apart from European markets where some of the local utilities, such as EDF in France and ENEL in Italy, are playing important roles in the downstream segment. However, no major acquisition of downstream system integrators by upstream manufacturers has occurred. As a result, markets like Germany – often seen as being ahead on the “global solar development path” – have nurtured a multitude of strong, independent installers.