Global solar PV inverter revenues have declined again during the third quarter of 2011 according to a new report published by IMS Research. The report shows that industry revenues in Euro have fallen by over 20 percent year-on-year.

IMS Research indicates that a sluggish quarter in Germany is the main contributor to the global market decline. Third quarter revenues in Germany were over 50 percent down compared to 2010’s third quarter.

The report shows that the market was limited by the inactive German market. Shipments in Germany were over 1GW lower than in Q3’10, resulting in global shipments declining by 8 percent year-on-year.

Shipments have continued to grow over the last two consecutive quarters. However, revenues have decreased because of falling prices. Although Q3’11 shipments failed to hit 2010 quarterly levels, prices stabilised during the quarter, indicating a healthier level of inventory in the market.

IMS Research believes that exchange rates have had a significant effect on revenue and price changes in the third quarter. “The majority of inverters are still sold in Europe where the average price per watt stabilisedlast quarter if measured in Euros. However, companies from outside the Eurozonerealisingtheir revenues in dollars may still have felt the price pressure as Dollar prices fell by 5 percent compared to Q2’11 due to changes in exchange rates”, commented Tom Haddon, PV Market Analyst at IMS Research.

“Price pressure will continue to be a prominent feature of the market for some time and it wouldn’t be wise for PV inverter suppliers to count on prices staying at this level for long”, added Haddon.

Despite declining shipments in Q3’11, IMS Research forecasts that annual inverter shipments will grow in 2011 and break the 25GW mark as new incentives in Asia and an expected end of year rally in Germany (before the January 1 FiT cut) will help stimulate demand.

The full IMS Research report can be viewed here.