Hanco International obtains exclusive agency rights in Taiwan for solar inverter giant Satcon

International New Energy Network: The situation of the solar energy industry chain is changing rapidly, and competition and cooperation between supply chain manufacturers are still going on, and the inverter market is no exception. In the cold winter of the solar energy market at the end of 2012, not only did many small inverter manufacturers in Taiwan gradually withdraw from the market, but Satcon, a major inverter manufacturer in North America, also declared bankruptcy due to debt problems. As the market warmed up, Satcon's financial deadlock was finally resolved as Great Wall Energy, a subsidiary of China Electronics Information Industry Group, one of the world's top 500 companies, took over all its assets. EnergyTrend specially interviewed Hanco International, which recently won the exclusive agency contract for Satcon inverters and spare parts in the United States, Europe and Taiwan, to discuss the current situation and prospects of Taiwan's solar inverter market.

Hanco International officially signed a contract to obtain the exclusive agency rights of Satcon in Taiwan, North America and Europe.

Current Status of Taiwan's Inverter Market

Mr. Lan Weiwen, Assistant Manager of Electronics and New Energy Business Group of Hanco International, said that in the early days when Taiwan did not have a wholesale rate system, some Taiwanese UPS manufacturers entered this production field because their products were similar to the inverter concept. After the government announced the wholesale rate in 2009, domestic large power plants had a demand for high-power inverters. European and American manufacturers successfully entered the Taiwanese market because of their complete product specifications. Currently, most inverters used in Taiwan's commercial systems are still mainly imported from the United States and Germany. As residential systems prioritize price, they mostly use Taiwanese and Chinese systems. The Taiwanese inverter market is highly competitive, and the key lies in the brand, stability, power generation efficiency and after-sales service of the inverter itself. For the brands represented by Hanco International, whether it is Satcon or Delta Electronics, they all have high brand awareness, neat product lines and good stability. Hanco International has also secured several domestic EPCs and customers who continue to invest, which has gradually increased its market share. Currently, its commercial market share in Taiwan is over 70%, and its total installed capacity in Taiwan has reached 80MW.

When Hanco International first entered the inverter market, it discovered that the industry was in a state of severe buyout and sell-out. Manufacturers often did not contact customers until problems arose. Hanco International thought in reverse, taking the smooth operation of customers as the starting point before making sales. Pan Zhongbai, Section Chief of the New Energy Application Product Business Department, said that Hanco first used consulting services to understand customer needs and designs as the starting point, including pre-order communication, post-arrival inspection, pre-grid test, direct communication with Taipower at the factory on the day of grid connection, and issuing inspection reports after grid connection. Even when providing maintenance services, operation and maintenance status reports are also issued. The complete participation gives customers a sense of trust. In terms of professional technology, maintenance personnel have all received education and training from the original manufacturer and obtained certification. With accumulated experience, they can also troubleshoot errors more easily.

Hanco International expands its global presence with its major brand Satcon

When talking about the future layout, Lan Weiwen said that it is mainly divided into two directions: global layout and the extensibility of inverter and component agents.

As for globalization, a branch office has been established in the United States recently, and business activities have begun this month, providing after-sales service for Satcon inverters in North America. Although the initial situation will face distrust from American customers due to Satcon's previous bankruptcy, there are more than 6,000 Satcon products in North America. In addition to taking over old brand customers, we will continue to provide customers with a stable supply of spare parts and professional technical service consultation, and cooperate with Great Wall Energy, which has a good financial situation, to continue to expand the market and work hard to gain customer trust.

In terms of extended development, power plants currently require a 20-year guarantee, but foreign brands initially entered the market at low prices, which later resulted in orphan power plants or high operation and maintenance costs, making the subsequent business after the power plant is in operation also very important. In addition to establishing a subsidiary this year to handle operation and maintenance matters, Hanco International has also developed a monitoring system that can correspond to inverters from various brands. Spare parts and components are also in relatively high inventory levels, and can respond to customer needs at any time without worrying about supply. The exclusive agent of Satcon inverters no longer has financial worries. Hanco's professional capabilities plus the existing market share in China, such continued sales and services will surely allow Satcon to regain its past high-quality product image and return to its past glory.

Viewpoint

Taiwan's solar power generation will face a 14% to 16% drop in the purchase price of power generation next year. As the rate gradually decreases and the volume increases, the stability of the inverter will directly affect the operation and payback period of the power plant. In addition to continuing to reduce costs to maintain competitiveness, manufacturers will also move towards more refined and diversified operations and provide integrated and proactive services. Inverters focus on brand and localization. Hanco International has deepened its roots in Taiwan with its traditional brand Satcon and localized operations. In addition to serving old brand customers, it is also actively expanding new businesses. With its own professional EPC experience, it should have the opportunity to regain the trust of Satcon in the industry and smoothly advance the company to the international stage in the future.