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North American PV EPC Monitor 2013©Access the North American Downstream Market Primary Survey on the US West Coast and US East Coast with a special focus on Market | Procurement & Sales | Positioning | Brand | Satisfaction | Pricing EuPD Research | Multi Client 2Agenda1. Your Challenge2. Our Solution – The North American PV EPC Monitor 2013©3. Geographical Scope & Target Sample4. Research Design 5. Contents6. Benefits of the Product for Your Company7. Order Form 8. General Terms and Conditions of BusinessEditorial31. Your Challenge: Understand Markets – Develop Sales Strategies – Secure a Sustainable Positioning 1. Important to be up-to-date on the current situation as well as the developments projected for the top sales markets in North America2. essential to have knowledge of procurement channels, as well as the various distributors of PV products in different markets3. Critical to understand sales channels in relation to customer segments (residential, commercial, utility)4. crucial to recognize one’s competitive position and competitive edge in order to further develop and defend strategic competitive advantages 5. Necessary to gain detailed insight from the EPC perspective in order to identify attitudes, expectations and preferences6. Vital to have insight to customer satisfaction levels and the factors influencing them7. Understand system prices and component split.It is a fact that North America represents enormous untapped PV potential. Hence, component manufacturers and industry players seek answers on how to exploit current and future opportunities – against the background of a challenging market situation, high competitive pressure and complex framework conditions.As North America holds the potential of becoming one a global key solar market, which attracts manifold PV actors, the intensity of competitive rivalry is expected to increase significantly. To withstand these challenges, identify and exploit sales opportunities as well as to secure and enhance your position it is…42. Our Solution – The North American PV EPC Monitor 2013©Market Analysis: legal framework, on both federal and state levels, market development, market segmentation and identification of promising application types/customer groups, etc.Procurement Management & Sales Channels: e.g. procurement channels, purchasing decisions classified according to brands/technologies, sales volumes into different market segmentsPV Supplier Positioning: e.g. measurement of distribution depth and width along with the resulting distribution range, share of technology soldBrand Perception: e.g. brand performance, brand value, level of recommendation and reasons for recommendationsCustomer Satisfaction : e.g. satisfaction factors, benchmarking of the most important suppliersSystem Pricing: e.g. system price according to size ranges, system price break down, expected yields/ pay back timesThe “North American PV EPC Monitor 2013©” published by EuPD Research will offer a comprehensive set of data and information. It will provide you with insights on:53. Research MethodsThe study will be based on a comprehensive primary research (empirical survey). The survey groups are composed of EPCs, system integrators and project developers which actively source PV system components in the core regions defined. The study will employ a quantitative telephone questionnaire carried out by our multilingual interviewers. Our staff draw on long-term, in-depth experience and know-how of sales intermediaries as they have conducted numerous surveys in the solar industry over the past 12 years. The results of the study will be analyzed anonymously in line with the requirements of modern market research. Also secondary research will be involved in the analysis: The use of internal global databases, tools and sources resulting from EuPD Research’s extensive, long-term market observation, efficiently complements the detailed information provided by the EPC’s interviewed .Within this scope, the following EuPD Research databases and reports (excerpt) will be used:?“EuPD Research PV Heaven“ – excel based EuPD tool, regular and detailed assessment of global PV manufacturers (supply) ?“EuPD Research PV Market Tracker“ – EuPD Research database, regular evaluation of global supply, demand, pricing, macroeconomic conditions and news?“EuPD Research PV Market Matrix” – excel-based tool for global quantitative country ratings?EuPD Research functional studies (e.g. “Global Off-Grid PV Markets”)?EuPD Research company database of PV companies and institutions64. Geo Scope & Target SampleThree major regions in focus covering 73% of the market….CA, AZ, NVn = >100NJ, NY, PAn = >100Survey features:? Up to 200 interviews to be conducted, up to 100 interviews in each region targeted? Field time: December 2012/January 2013? Interview length: approx. 40 minThe target states for the survey are seven key PV markets in North America: Arizona, California, Nevada, New Jersey, New York and Pennsylvania. For 2012, about 73 percent of the total installed capacity in North America is expected to be installed in these six states. The population from which the sample will be taken is comprised of about 7,000 solar-specific installation/EPC companies.75. Contents – OverviewContent wise, the “The North American PV EPC Monitor 2013©” is structured in six chapters (A-F). From a system component perspective, PV panels, PV inverters and PV racking systems will be covered. Geographically, the analysis will be carried out for the main regions US East Coast and US West Coast. For each of these markets a separate report will be provided.Part I. – USA EastPart III. –Regional ComparisonPart II. – USA WestExecutive SummaryChapter FSystem pricingChapter AMarket analysisChapter BProcurement management & sales channelsChapter C PV suppliers’ positionChapter DBrand perceptionChapter ECustomer satisfaction8Analysis of key North American PV markets: This chapter does not only depict the current framework conditions in the key regions, but also provides an assessment from an EPC perspective as well as reasons why and impacts.? What is the incentive framework in select PV markets like?? What market development and market segmentation is expected?? Which promising application types and customer groups can be identified?? What are the drivers and hindrances?? How is the market outlook & influencing factors evaluated?5. Content – Market AnalysisExample: Incentive framework in each market analyzed Example: PV market development in each state analyzed ? For the Portuguese market, high growth rates were expected, though its development is partially hindered by bureaucracy. After speculations with grid -connection licenses, the feed -in law and the allocation of licenses have been frozen until 2009. Projects with old licenses are still being implemented, such as the eleven MW plant in Serpa (connected in March 2007) and the 62 MW Moura plant that is in the pipeline. ? In November 2007, a new law for small PV plants (up to 3.68 kW) was passed. With it, amortization is possible within 6/7 years.? Specifics: For 2008, ten MW were allowed; for every following year, 20 percent more. Simultaneously, the basic feed -in -tariff declines by about five percent for every ten MW installed. Size of the plants measured by nominal capacity of the inverter not modules, maximum size of the plant allowed is half the capacity of the connection point of the building. Only companies with at least one professional engineer and installer are allowed to install PV plants.? 2007: 13 MW? 2008e: 50 MW? 2009e: 40 MW? 2010e: 38 MW? 2011e: 35 MWInstalled capacitySource: EuPD Research 2008? 1,300 – 1,900 kWh/m 2a (Germany: 1,000 ±150 kWh/m2)Cumulated 2007: 16 MWFirst five years? Systems <3.68 kW: 0.65 €/kWhAfter this a smaller payment for the next ten years (dependent on the installed capacity).Only small PV systems in combination with solar thermal systems (collectors have to be 2 m ²) will be favored by the government. Solar radiationPV promotion(no security of investment: Ministry for the Economy are allowed to change the feed -in -tariff at any time)2008 FIT amendmentnewly installed? For the Portuguese market, high growth rates were expected, though its development is partially hindered by bureaucracy. After speculations with grid -connection licenses, the feed -in law and the allocation of licenses have been frozen until 2009. Projects with old licenses are still being implemented, such as the eleven MW plant in Serpa (connected in March 2007) and the 62 MW Moura plant that is in the pipeline. ? In November 2007, a new law for small PV plants (up to 3.68 kW) was passed. With it, amortization is possible within 6/7 years.? Specifics: For 2008, ten MW were allowed; for every following year, 20 percent more. Simultaneously, the basic feed -in -tariff declines by about five percent for every ten MW installed. Size of the plants measured by nominal capacity of the inverter not modules, maximum size of the plant allowed is half the capacity of the connection point of the building. Only companies with at least one professional engineer and installer are allowed to install PV plants.? 2007: 13 MW? 2008e: 50 MW? 2009e: 40 MW? 2010e: 38 MW? 2011e: 35 MWInstalled capacitySource: EuPD Research 2008? 1,300 – 1,900 kWh/m 2a (Germany: 1,000 ±150 kWh/m2)Cumulated 2007: 16 MWFirst five years? Systems <3.68 kW: 0.65 €/kWhAfter this a smaller payment for the next ten years (dependent on the installed capacity).Only small PV systems in combination with solar thermal systems (collectors have to be 2 m ²) will be favored by the government. Solar radiationPV promotion(no security of investment: Ministry for the Economy are allowed to change the feed -in -tariff at any time)2008 FIT amendmentnewly installed8080 MWp100 MWp200 MWp300 MWp400 MWp500 MWp600 MWp700 MWp800 MWp900 MWpMarket Volume 37 50 78 121 189 294Cumulated 76 126 204 325 514 8082007 2008 2009e 2010e 2011e 2012especificationsin MWpSource: EuPD Research 2009 761262043255148080 MWp100 MWp200 MWp300 MWp400 MWp500 MWp600 MWp700 MWp800 MWp900 MWpMarket Volume 37 50 78 121 189 294Cumulated 76 126 204 325 514 8082007 2008 2009e 2010e 2011e 2012especificationsin MWpSource: EuPD Research 2009 761262043255149Analysis of EPC Procurement Management & Sales Channels?What are the contract and supply conditions of EPCs??What does the market mapping look like? i.e. what does the channel analysis 2011-2012 by EPC type, trade and size (MW installed) reveal??How are components sourced? (Direct vs. indirect procurement channel analysis)?What are the relevant purchase decisions according to brands/technologies and justification of a suppliers choice??What are key buying factors (KBF)/purchasing reasons??Further topics covered: e.g. what does the resellingbusiness look like (wholesalers/ distributors)5. Content – Procurement Management & Sales Channels27%20%29%22%20%6%15%13%16%14%32%31%51%42%25%21%57%31%41%40%34%39%24%28%23%26%28%36%30%33%23%37%23%29%22%33%23%42%19%29%39%41%47%50%57%68%57%52%54%52%45%31%26%29%53%46%20%28%40%31%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Planning securityLong-term perspectivePurchase pricesGuaranteesDelivery quantitiesSales ConsultingDelivery flexibilityGood will and returns servicesPayment conditionsValue Added ServicesGISIGISIGISIGISIGISIGISIGISIGISIGISIGISIWholesaler Doesn't make a difference ManufacturerSource: EuPD Research 2011Regarding the criteria below, do wholesalers or manufacturers have more advantages?GI = General Installers (Maximum: n=62)SI = Solar Installers (Maximum: n=67)Example: Evaluation of PV Procurement Channels Example: Procurement and Sales Channels 10Positioning within the customer’s portfolios?What is the distribution depth and width of different component manufacturers??How are distribution ranges and how are different companies positioned??What changes in positioning took place compared to last year, i.e. which brand secured market share and which lost market share?5. Contents – PV Supplier PositioningExample: Distribution RangesExample: Brand Positioning11Brand Awareness of Top PV Manufactures and their Distribution Ranges ? How do EPC’s evaluate the importance of brand?? How are brand awareness and brand loyalty assessed? (purchase funnel analysis)? Which level of brand recommendation does each brand reach?? What impact does sponsorships (sports) have on sourcing?? How do equipment manufacturers score in the brand matrix? (mapping of recommendation vs. awareness)5. Contents – Brand PerceptionHow frequently do you recommend a specific brand?Source: EuPD Research 2011n = 30665.264.360.256.050.021.725.725.034.918.88.75.74.54.66.30.91.73.40.912.54.31.46.82.812.50% 20% 40% 60% 80% 100%Large solarinstallers* (n=23)General installers(HVAC and roofingcompanies) (n=70)Small solar installers*(n=88)Electric installationcompanies (n=109)Others (n=16)very frequently (1) frequently (2)occasionally (3) rarely (4)never (5) no responseØ1.411.481.511.521.93Which brand do you recommend?181010998887666550 5 10 15 20 25 30SolarWorldSchottSMASunPowerBosch S. E.SchücoIBC SolarRECSolarwattaleo solarCentrosolarSolarfabrikSolonSuntechYingliSmall solar installers*Large solar installers*Electric installation companiesGeneral installers (HVAC and roofing companies)Others27*Small solar installers: annual installation capacity up to 3,500 kWpLarge solar installers: annual installation capacity > 3,500 kWp Brand TrendSourcedyet (2010)Sourcedyet (2011)Trend 2010 2011 TrendNumber of responses%Number of responses%Number of responses% % % % %SolarWorld 244 89 227 90 356 98 26 41 35 27SMA 240 88 236 94 350 96 86 88 55 65Sharp 246 90 227 90 346 95 26 35 -2 -10Schott 236 86 226 90 344 95 31 47 31 40Sanyo 198 73 223 89 337 93 18 27 26 20SunPower 158 58 196 78 326 90 11 20 4 26Conergy 208 76 209 83 320 88 16 24 -46 -17Suntech 134 49 203 81 318 87 24 34 3 11Yingli 115 42 198 79 309 85 27 34 9 -4Bosch S. E. n.a. n.a. 191 76 307 84 8 24 0 34Danfoss S. I. 171 63 209 83 305 84 21 29 21 26Recommendation (Net Promoter Score)Results in…Sourcing of brandResultsin…Aided Brand Awareness 2009Aided Brand Awareness 2010Aided Brand Awareness 2011Results in…Analysis of AwarenessExample: Aided Brand Awareness Example: Frequency of Recommendation12Supplier-Customer Relationship between Producers and EPC?What are satisfaction drivers? (regression of influencing factors)?How are satisfaction drivers evaluated with respect to different manufacturers? (e.g. yield, quality, mounting ability, etc.) ?What is the benchmark brand??Does product origin play a role and if yes, how important is it? 5. Contents – Customer SatisfactionExample: Regression Analysis Example: Satisfaction with the terms of agreement for supply2.002.252.502.753.003.253.50Mass market strategy 2,68 2,65 2,35 2,58 2,29 2,59Cooperation strategy 2,15 2,35 2,19 2,60 2,08 2,08Disinvestment strategy 2,12 3,27 2,48 2,87 2,27 2,39Nische strategy 2,32 2,72 2,68 2,66 2,51 2,46Indifferent Strategy 2,85 2,78 2,85 2,66 2,38 2,65Conditions of the supply relationship Conditions of paymentAgreements for the delivery volumes Price changes Warranty claims Additional servicesSource: EuPD Research 2009 2.002.252.502.753.003.253.50Mass market strategy 2,68 2,65 2,35 2,58 2,29 2,59Cooperation strategy 2,15 2,35 2,19 2,60 2,08 2,08Disinvestment strategy 2,12 3,27 2,48 2,87 2,27 2,39Nische strategy 2,32 2,72 2,68 2,66 2,51 2,46Indifferent Strategy 2,85 2,78 2,85 2,66 2,38 2,65Conditions of the supply relationship Conditions of paymentAgreements for the delivery volumes Price changes Warranty claims Additional servicesSource: EuPD Research 2009 13System Pricing and Cost Breakdown?What are system price levels according to different size categories??What are the price differences between the regions??What does a break down system price show??What is the demanded yield/ payback time?5. Contents – System PricingExample: System Prices Example: System cost break downExample: Expected Payback times14FrameworkCompetitorsB2B CustomersProduct / BrandCommunicationPricePositioningThe “North American PV EPC Monitor 2013©” will provide your company with decisive competitive advantages. These benefits enable you to...This product contains information about the following topics:*End Customers? Discover and use detailed information about procurement management? Learn the importance of sales channels regarding customer segments? Understand how different PV system component suppliers are positioned within the market? Gain an overview of the most important brands and suppliers from the point of view of North American PV EPC companies ? Understand what EPCs are looking for from systems, suppliers and manufacturers? Understand satisfaction drivers? Find the best position for your company on the market that enables you to meet EPC requirements. (The product does not deal with the topic.) key focus* main topicsomeSatisfactionDistribution6. Benefits of the Product for Your Company157. Order Form – “North American PV EPC Monitor 2013©”Your business is unique – so chose the market intelligence that suits your individual interestNorth American PV EPC Monitor 2013©Price* € Price* $Regional Focus- Pdf Version of the reportUSA West (NJ, NY, PA) 4,950 € $6,750USA East (CA, AZ, NV) 4,950 € $6,750Product Focus- Pdf Version of the reportModules 4,950 € $6,750Inverters 3,500 € $4,800Racking Systems 3,500 € $4,800Topic (Chapter) Focus- Pdf Version of the reportMarket Analysis 1,150 € $1,600 Procurement Management & PV Supplier Positioning 4,950 € $6,750 Brand Perception & Customer Satisfaction4,950 € $6,750System Pricing 1,150 € $1,600___Printed Copy (price per copy) 85 € $100 xls Report Price on request*all prices excluding VATNorth American PV EPC Monitor 2013©Price* € Price* $- Target states: CA, AZ, NV, NJ, NY, PA 7,495 € $10,250- Pdf Version of the report___Printed Copy (price per copy) 85 € $100 xls Report Price on request*all prices excluding VAT167. 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In that case, the terms and conditions, as stated in German law come into effect. 19EuPD Research EuPD Research USAAdenauerallee 134 870 Market Street, Suite 105553113 Bonn 94102 San FranciscoPhone +49 (0) 228-971 43-0 +1 (415) 867 7842welcome@eupd-research.com welcome@eupd-research.comwww.eupd-research.com www.eupd-research.comContact ContactDr. Thomas Olbrecht Ibolya Tarsolyt.olbrecht@eupd-researh.com i.tarsoly@eupd-research.comSenior Research Manager Senior Representative West Coast USADaniela Schreiberd.schreiber@eupd-research.comExecutive Vice President EuPD Research USAEuPD Research® is a brand of HOEHNER RESEARCH & CONSULTING GROUP GmbH.Member of ESOMAR World Research.Editorial