Global Solar Photovoltaic (PV) Inverter Market - Growth, Trends, and Forecast (Outlook to 2028)

The rapidly growing demand for renewable energy, continued rural electrification, supportive government policies, and investments in renewable energy are driving the demand for the solar PV inverter market.

The growing number of solar power plants linked to the grid via on-grid inverters and feed-in tariff (FIT) regulations are propelling global solar PV inverter market growth.

Residential solar PV systems are typically employed in rooftop installations, which provide the benefits of feed-in tariffs and net metering, driving the residential sector's adoption of solar PV systems.

A PV inverter, also known as a solar inverter, transforms a solar PV panel's direct current (D.C.) output into alternating current (A.C.), which may either be provided to a commercial electrical grid or utilized by an off-grid network.  The power range produced will be between 250 and 600 volts. They are primarily used in residential, commercial, and utility-scale solar rooftop and ground-mounted systems.

These solar inverters' capabilities include maximizing power, operating temperature, and regulating and monitoring all power plant parameters and operational data.

Off-grid solar panel installations for industrial, residential, and commercial applications continue to drive the solar inverter industry and generate significant demand for dependable and safe power source converters.

Classification based on the application:

• String inverter – A string inverter is linked to a string of solar panels, which is known as a solar array. A typical solar array can be made up of 15 or solar panels. The inverter combines all of the direct electricity received from each solar array and turns it into alternating current all at once.
• Central inverter - Central Inverter or large scale grid inverter is an utility scale solar inverter that ranges from hundreds of KW's to hundred's of MW's. Central inverters combines all of the direct electricity received from each solar panel and turns it into alternating current all at once.
• Microinverter – Each solar panel is equipped with a single inverter. Each micro-inverter transforms direct current (DC) to alternating current (AC), and the output of each panel is aggregated and routed to the grid or battery bank. They electrically separate the panels from one another, ensuring that minor shade, debris, or snow lines on any solar module, or even a total module failure, do not disproportionately lower the output of the entire array.
• Hybrid inverter – An inverter that allows surplus solar energy to be stored in a battery system for self-use. Hybrid inverters work in the same way as traditional solar inverters. They may, however, run in battery backup mode, which gives a small amount of backup power in the case of a power outage. They can also work without a battery, acting as a standard solar inverter by exporting surplus solar energy to the utility grid.

Advantages of solar PV inverter:

• Reduces global warming and greenhouse effect
• Reduce the cost of energy bills
• Increase property value
• Low maintenance costs

General information regarding solar PV inverter market

U.S. – The solar investment tax credit act cut PV generation costs by 26% in 2020, 22% in 2021, 10% for utility and commercial-scale projects, and 0% for residential projects. This modification will have a substantial influence on PV deployments in U.S.

According to IRENA, the solar PV market in U.S. will reach 393 GW by 2030, making it the world's second-largest PV industry. In Feb 2021, U.S. has re-joined the Paris Climate Agreement, with the objective of achieving carbon neutrality by 2035 and the economy overall by 2050.

Germany - Germany plans to achieve carbon neutrality by 2045. Germany passed the Climate Protection Act 2030 to increase renewable energy to more than 65 percent of the total energy supply by 2030.

China - China is the world's largest solar power producer and leads the worldwide solar photovoltaic (PV) industry. Solar PV panels production is predicted to rise as renewable energy gains prominence in China's 14th Five Year Plan (2021-2025).

India – Announced a new target of 450 GW of renewable energy by 2030 at the 26th Conference of Parties (COP26) in Glasgow. PM of India had said that by 2030, 50 percent of installed electricity would be met with renewable energy. Another target is to reach 175 GW renewable energy generation by 2022, and 100 GW is from solar.

Market developments and trends

• Because of the rising cost of fossil fuels, solar electricity is becoming a more cost-effective energy source. Solar inverter prices have also dropped in recent years, making them more accessible to the general population.
• Suppliers of solar inverters extended their software and service capabilities, becoming more than just manufacturers. Vendors have developed internet-of-things systems, investigated artificial intelligence and machine learning, and ventured into other new energy sectors.
• China, U.S., India, Germany, and Japan are the top destination markets that account for half of global solar PV inverter sales, and the trend is expected to continue in the following years.
• As fossil fuel prices increase, solar power is becoming a more economical and environmentally friendly.
• With the decline in costs for solar inverters and panels, owners of solar power are receiving reduced electricity bills, increasing the trend of solar power and influencing the demand for solar inverters.
• Since industries and companies are pressured to adopt more green practices and reduce environmental pollution, they have started relying more on renewable energy sources for their power demand, of which solar energy holds the major share.
• In 2020, FIMER acquired ABB's solar inverter business.
• In Jan 2021, Tesla launched its own solar inverter, getting a step closer to having a fully in-house solar PV system.

Solar Inverter Market Opportunities

• Increasing opportunities to provide electricity to areas in developing countries without proper access.
• Continued rural electrification, particularly in India and China
• Due to government regulations to reduce emissions, solar PV inverter demand will increase in the residential segment.

Blackridge Research's Global Solar PV Inverter Market report provides insights into the current global and regional market demand environment and prognosis.

The study offers a thorough examination of the many factors that impact the global solar PV inverter market growth. The study also comprehensively analyses the global solar PV inverter market by segmenting it based on geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America) and type based on power (String (central), Micro and Hybrid.)

The report also discusses current and future market possibilities, market trends, advancements, and the effect of Covid-19 on the global solar PV inverter market, essential developments, regions, and segments poised for the fastest-growth, competitive landscape. Further, the global solar PV inverter market size, and demand forecast, growth rates will also be provided in the report.