Solar and ESS manufacturer financial health rankings | Q3 2024

solar manufacturer financial health

SunPower’s bankruptcy is a reminder of the precarious position of many solar businesses. With that as the backdrop, let’s take a look at the Q3 2024 financial report rankings from Sinovoltaics, a quality assurance group for solar and storage industries.

“Given the dynamics of 2024, with an increasing oversupply of modules and record-low prices, it’s particularly important to be able to review a manufacturer’s financial stability over time,” said Dricus de Rooij, co-founder and CEO of Sinovoltaics. “Our comprehensive data over a period of three years gives a full picture beyond the normal quarterly fluctuations for modules as well as batteries and inverters, aiding developers in sourcing their materials.”

Sinovoltaics rankings explained | These Sinovoltaics quarterly reports evaluate the financial stability of publicly listed manufacturers of PV modules, energy storage, and inverters across the U.S., Europe, and Asia, using the Altman Z-Score, a widely recognized financial assessment tool.

Unlike the Bloomberg PV Module Tier 1 List, which considers criteria like bankability and production capacity, this tool measures a company’s financial health through profitability, leverage, liquidity, solvency, and activity ratios.

Sinovoltaics recommends that in addition to using these reports, solar and energy storage developers also conduct thorough factory audits and quality inspections to mitigate investment risks and technical failures.

Q3 2024 | The latest reports rank 65 solar module manufacturers, 55 energy storage manufacturers, and 32 inverter manufacturers. Trends for each company, based on data from September 2021 to June 2024, are shown in easily scanned tables. These trends provide crucial insights on how each manufacturer’s financial strength has evolved over the past three years.

The Q3 snapshots are below. Click to enlarge.

Energy Storage Manufacturer Financial Health

In such a new market like energy storage, with average warranties that vary widely between 2-10 years, “the financial stability of an energy storage manufacturer is crucial as it is geared to the validity and enforceability of the warranty policies on its products,” the Sinovoltaics team notes.

Sinovoltaics Q3 ESS Financial health rankings

PV Inverter Manufacturer Financial Health

Ultimately, the financial stability of an inverter manufacturer is geared to the validity and enforceability of the warranty policies on its portfolio of central, string or micro inverters.

“Most people realize that today’s inverter manufacturers will probably not be around in 5 to 10 years. However for the short to medium term, you want to be sure that warranties are in place,” the report notes.

Sinovoltaics Q3 PV inverter Financial health rankings

PV Module Manufacturer Financial Health

Employing solar PV modules from financial stable manufacturers provides for a better hedge against the potential risk of collapsing return of investment (ROI) of any PV project.

Sinovoltaics Q3 PV module Financial health rankings

The full reports include trendlines indicating who is up and who down from previous quarters. The full reports are available on the Sinovoltaics website.

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