Sharp Comes Out on Top in Ontario PV Installer Survey

Study by ClearSky Advisors sheds light on who is likely to lose or gain market share in Ontario’s PV Retail panel market.

A January 2011 study of Ontario photovoltaic (PV) installers indicated that Sharp has the most loyal customers, particularly among the installer segment that exclusively use a single brand of panels. The study assessed loyalty and satisfaction with PV module manufacturers among Ontario retail installers using three distinct measures: Net Promoter Score, exclusive use of a single panel brand, and degree of installers switching brands with changing domestic content (DC) requirements. Sharp led PV module brands in Ontario in two of the three measures.

Sharp’s decision to use Ontario-produced silicon to meet increased DC requirements did not seem to significantly affect how installers perceive their brand. Sharp was the highest rated module manufacturer for both 40% and anticipated 60% DC requirement installations, though their ratings decreased with increasing DC requirements. As the Ontario PV marketplace becomes more accustomed to the change in DC requirements it will be interesting to track whether the change in technology will impact installer’s recommendations of Sharp in the future.

Do opportunities exist for market players to take market share away from each other? Absolutely. ClearSky Advisors’ installer research has uncovered several such opportunities and we believe there is potential for significant disruption in module market share in 2011 for several reasons:

1. Disruption due to Domestic Content Requirements: Retail installers widely anticipate that the majority of their 2011 PV panel supply will come from different manufacturers than in 2010. Yet, on average, the number of module manufacturers used by installers in 2010 is anticipated to stay constant through 2011. Given the increased requirement for domestic content, this is perhaps not surprising, but it represents an opportunity for equipment suppliers ready to convert customers in 2011.
2. Sharp’s Change in Technology: It is unclear how many retail installers are aware of Sharp’s use of Ontario-sourced Silicon. To date however, there is little evidence of concern and plenty of evidence of loyalty to Sharp. Don’t expect that to deter competitors hoping to plant concern in the minds of customers and create an opportunity to capture market share.
3. Large Pockets of Dissatisfaction: Certain retail installer segments are likely to switch module brands. For example, dissatisfaction is rife among some manufacturers’ current installer customers. Manufacturers that are able to identify and target these customer groups stand to gain significantly in 2011.

With the Ontario PV panel market poised for disruption, manufacturers are advised to be ahead of the curve:

1. Find out where you stand with your current customers, and why
   • Does your understanding of your own strengths and weaknesses match what your customers are saying about you? Are you aware of perceived strengths and weaknesses and do they match with what you intended?
2. Identify customer segments that need to be defended and/or are ready for switching
3. Target specific messages and marketing efforts to those customer segments to make the most effective use of your market dollars

The survey conducted by ClearSky Advisors also examines similar topics for inverters, racking, pricing, employee productivity, domestic content requirements and many other issues faced by Ontario PV installers. For more information on the survey, click here.

Article image courtesy of Andreas Demmelbauer.