The solar micro inverter market is estimated to be valued at USD 32.14 Bn in 2024, growing at a CAGR of 19.7% over the forecast period (2024-2031). The market is driven by various government initiatives and policies to promote renewable energy installation. In addition, declining costs of solar panels have boosted the adoption of residential solar systems across regions North America and Asia Pacific.
Market Dynamics:
The growth of the solar micro inverter market is driven by increasing renewable energy installations and rapid growth of residential solar photovoltaic systems. Various government schemes in countries around the world provide subsidies for residential solar installations, which has increased demand solar micro inverters. Furthermore, micro inverters have advantages over central/string inverters as they maximize solar panel level energy production. Each panel has its own micro inverter, therefore, panels showing signs of underperformance do not impact the production of the entire array. This independent, module-level power optimization helps reduce maintenance costs over the lifetime of the system. Micro inverters also have built-in monitoring software to detect faults and underperforming panels for improved operation of the solar energy system. The aforementioned factors are expected to propel the solar micro inverter market over the forecast period.
Solar Micro Inverter Market Drivers:
- Increasing adoption of renewable energy sources: One of the major drivers for the solar micro inverter market growth is the increasing adoption of renewable energy sources across the world. With growing environmental concerns about fossil fuels and their impact on climate change, many countries are focusing on developing renewable energy infrastructure and promoting the use of clean energy. Solar energy is one of the most viable and popular renewable energy sources. The deployment of solar panel systems has increased significantly in the past decade. Micro inverters provide several advantages over traditional inverters in solar installations, which is driving their higher adoption.
- Improving efficiency of solar panel systems: Another key driver is the improved efficiency that micro inverters provide for solar panel systems. Unlike traditional string or central inverters that convert DC power from an entire array of solar panels into AC power, micro inverters convert the energy individually panel-by-panel. This ensures that each panel operates at its maximum output regardless of shading or issues with other panels. Micro inverters improve the overall efficiency of solar installations by 5-30% compared to traditional inverters. The energy losses are minimized. This has increased their popularity among residential and commercial customers.
Solar Micro Inverter Market Restraints
- Higher upfront cost compared to traditional inverters: One major restraint for the solar micro inverter market is their higher upfront cost compared to traditional string or central inverters. A micro inverter system requires installation of individual inverters below each solar panel which makes the overall system cost higher than an installation with fewer large central/string inverters. While micro inverters improve efficiency and lifespan, customers are often reluctant to pay higher initial investment. This acts as a barrier, especially in price-sensitive residential installations.
- Limited awareness among customers: Limited awareness among small-scale residential and commercial customers about the technical and economic benefits of micro inverters also acts as a key market restraint. Most customers view solar installations from the perspective of upfront costs. While micro inverters ensure better performance and return on investment in the long-run, customers need to be educated about tangible benefits. Until widespread knowledge grows, the sales of micro inverters may be constrained compared to their capabilities. Concerted marketing efforts are required to address this awareness gap.
Solar Micro Inverter Market Opportunities
- Growing residential solar installations: One major market opportunity is the immense growth expected in the residential solar energy market. More households are adopting rooftop solar panels to generate their own electricity and reduce utility bills. Residential installations are likely to grow at a higher rate than commercial projects. With their advantages of improving yields of individual panels, micro inverters are well-suited for residential solar systems. This growing customer segment provides a solid opportunity to boost sales.
- Emergence of battery storage solutions: The integration of solar energy with battery storage solutions is opening new opportunities. When combined with batteries, solar-plus-storage systems allow customers to use self-generated solar power even when utilities grids face outages. Micro inverters are compatible with battery systems and help maximize the solar energy harnessed for storage. Their capability to work with integrated solar-plus-storage technologies will augment market demand going forward.
Link: https://www.coherentmarketinsights.com/market-insight/solar-micro-inverter-market-3655
Key Developments:
In September 2022, Yotta Energy, a U.S.-based storage system manufacturer, launched a new microinverter designed for commercial rooftop solar panel systems. The new DPI microinverters come in two versions, 208 V and 480 V, and boast features like built-in phase monitoring/balancing, compliance with UL 1741-SA (Rule 21), and NEC 2020 690.12 quick shutdown requirements.
In July 2022, Zhejiang Beny Electric Co. Ltd, a China-based company, introduced a range of micro-inverters for both residential and commercial solar panel setups. These micro-inverters come in three models with different power ratings: 700, 550, and 2,800 volt-amperes.
Key Players:
Enphase Energy , SolarEdge Technologies , ABB Ltd. , SMA Solar Technology AG , Chilicon Power LLC , APsystems , Solis Energy Solutions Inc. , Delta Electronics Inc. , Ginlong Technologies , Darfon Electronics Corp. , SunPower Corporation , Yaskawa - Solectria Solar , Huawei Technologies Co., Ltd. , Altenergy Power System Inc. , SolaX Power , Fronius International GmbH , Green Power Technologies , Growatt New Energy Technology Co., Ltd. , Sungrow Power Supply Co., Ltd. , and Power Electronics.
