2231 Distribution: Why are prices higher in the U.S. vs. Abroad?

Wednesday, October 19, 2011: 11:15 AM
C144/145 (Dallas Convention Center)
Matthew Woods , Mainstream Energy, Inc., San Luis Obispo, CA
Abroad, pure-play solar distributors control most of the downstream product supply. Distributors operate regionally to support large integrators and project developers in their regional markets. Marketing is focused, customers are fewer and more concentrated, products are more limited but overall product as a relative % of total market demand is higher through distribution. Why has the U.S. market not grown in a similar fashion? Here we find distributors forced to operate at much higher margins to stay in business, leading distributors carry a much wider selection of products, and geographic focus is rather unfocused.

Note: more than 85% of US Integrators buy through distribution but there is very little representation of distributors on panels as SPI. A strong panel that articulates the various go-to-market strategies of distributors has the potential to draw a significant crowd and shed light on the very important but seldom discussed U.S. PV distribution market.