While the component shortages (IGBTs) that had lead inverters to be a bottleneck for solar PV systems installations have largely subsided, supply is still noted to be tight. Bookings extend well into 2011, and pricing is not viewed as a major competing factor for the moment. However, the largest of the inverter suppliers is noted to be driving an ongoing cost reduction effort and should serve to lower inverter costs and pricing over the longer term. The inverter suppliers also talked about how the inverter is growing beyond power conversion, and increasingly serving as the center of power generation and control (reactive power, voltage and frequency stabilizer), as well as serving as a gateway to data and control. The descriptions of these enhancing capabilities sounded very similar to descriptions of smart grid, smart meter, and demand response capabilities.
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