PV Inverter Market Size and Trends

The PV inverter market size is valued at US$ 15.28 billion by 2024, from US$ 41.87 billion in 2031, at a CAGR of 15.5% during the forecast period. PV inverters are critical components in solar energy systems that convert the direct current (DC) generated by photovoltaic (PV) panels into alternating current (AC) that can power homes and businesses or be fed into the electric grid. There are two main types of inverters: string inverters and microinverters. String inverters are connected to multiple PV panels in series and invert the combined DC output of the connected string. This allows for maximum power point tracking to optimize performance but presents single points of failure. Microinverters, in contrast, are integrated into or closely coupled to individual PV panels. This provides module level monitoring and optimization, but at a higher cost per watt.

PV Inverter Market Trends

Rising demand for storage along with PV systems: The growing demand for battery storage solutions in conjunction with photovoltaic or solar systems is having a substantive impact on the PV Inverter Market. As more homes and businesses invest in solar panels to generate their own renewable electricity, there is an increasing need for battery backups and other storage technologies to store this electricity for use when solar power generation is low or unavailable. This is because solar power production varies throughout the day and year based on sunlight levels, and many consumers want the ability to rely on electricity even when the sun isn't out. As a result, PV inverter manufacturers are developing more sophisticated inverters that are optimized to work together with battery storage. Traditional solar-only inverters cannot manage the complex power flows associated with diverting power between the solar panels, batteries, and internal and external loads as efficiently as is needed. The new generation of "solar-plus-storage" inverters provides built-in controls and operating modes to charge batteries from solar, discharge batteries to power loads when solar is low, and coordinate seamlessly with the storage system. They are designed from the ground up to maximize the self-consumption of on-site solar power by feeding loads first from solar and batteries before relying on power from the grid. For instance, according to Energy Information Administration (EIA) statistics that residential solar panel installations increased by 15% in 2021 compared to 2020 in the U.S. alone.
Focus shifting to residential PV installations: The rising trend of residential photovoltaic (PV) installations is having a profound impact on the global PV inverter market. With more households and small businesses installing rooftop solar panels to generate their own renewable energy and supply power back to the grid, the demand for smaller and more distributed PV inverters is surging. Previously, the PV inverter market was dominated by large utility-scale projects involving commercial solar farms. Inverters used in such projects tended to be on the higher power end of over 100kW. However, the falling costs of solar modules and supportive government policies have now made distributed solar generation economically viable for residential properties as well. For instance, according to the International Energy Agency, the number of solar rooftops installed on homes increased by 21% from 2019 to 2020 alone across major markets like the U.S., China, Europe, and Japan.