More manufacturers entering O&M, and not just for their own products
In a move to become more vertically integrated, many manufacturers (especially those in the inverter market) are acquiring established O&M providers and taking on their clients. While most manufacturers already have their own O&M services for their own products, the difference here is that some big brand names will now be servicing competitors’ products. Some significant moves include Enphase’s acquisition of Next Phase Solar’s portfolio of more than 400 MW (a large majority being commercial) and SMA’s buying of Phoenix Solar’s European activities.
Large developers and installers dominating O&M market
As more solar projects come online, it’s no surprise that the need for O&M continues to rise. The global market for megawatt-scale O&M was expected to surpass 88 GW by the end of 2014 and is on track to triple by 2018 thanks in part to projects in the United States.
But even as the market for O&M keeps growing, large developers, EPCs and vertically integrated firms—not dedicated O&M companies—dominate this area. Developers prefer to maintain their own portfolios, and this makes it difficult for independent O&M providers to break through on these large-scale jobs.
As new projects taper off (largely if and when the Investment Tax Credit drops at the end of 2016), EPCs may consider adding O&M to their services to stay afloat. Smaller, localized O&M companies could also merge with each other if the ITC halts the flux of projects entering the market, waiting to be serviced. SPW
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