The microinverter market was valued at US$1,599.346 million in 2022.
A micro-inverter is a device designed to connect to an individual solar panel, effectively transforming the direct current (DC) generated by the panel into alternating current (AC). This AC can then be utilized to power household appliances or directed into the grid for energy credits. Unlike string inverters, which manage the output of an entire string of panels, micro-inverters operate at the level of a single panel, providing more precise control. In a solar power system employing micro-inverters, each microinverter is installed at the site of an individual solar panel. This stands in contrast to centralized string inverters commonly found in solar systems, where a single inverter typically manages the entire system. Most solar panel setups using microinverters involve the installation of one microinverter on each panel.
Microinverters fall under the category of Module-Level Power Electronics (MLPE) because each operates independently at the panel site, offering a beneficial solution for intricate installations or those with partial shading. Unlike traditional string inverter setups, where the performance of all panels on the same string is constrained by the lowest-performing panel, microinverters ensure each solar panel operates independently. Even if one panel is not producing as much electricity as others, the rest can continue to perform efficiently. It's important to note that the size of each microinverter is determined by the panel's size and its electricity production capacity. The advantages of micro-inverters, such as improved performance in complex installations and partial shading scenarios, make them a compelling option in certain solar power system setups.
The expansion of the renewable energy sector emerges as a pivotal catalyst driving the demand for microinverters. Fueled by the global energy crisis, solar photovoltaic (PV) and wind are poised to orchestrate the most substantial annual surge in new renewable capacity, as highlighted in a recent report by the International Energy Agency (IEA). Projections indicate a remarkable increase of 107 gigawatts (GW), constituting the largest absolute rise ever, culminating in a total surpassing 440 GW by 2023. This dynamic expansion spans the globe's major markets, with renewables playing a pivotal role in Europe's response to the energy crisis, experiencing accelerated growth in the region. Additionally, new policy measures are instrumental in driving significant capacity increases in the United States and India over the next two years. Notably, China is steadfast in consolidating its leading position and is poised to contribute almost 55% of the global additions to renewable power capacity in both 2023 and 2024, underscoring its central role in the evolving landscape of renewable energy.
In China, the Central government has initiated the phased removal of domestic subsidies for solar photovoltaic (PV) modules, emphasizing technological efficiency, production cost optimization, and improved grid integration. Adhering to ad hoc policies, there is a concerted effort to augment the role of domestic markets. Notably, in 2021, China accounted for 36% of global solar demand while dominating the market with 97% of wafers, 75% of modules, and 85% of cell manufacturing.
Meanwhile, in India, the government has allocated a substantial capacity of 39,600 MW for domestic solar PV module manufacturing across 11 companies under the Production Linked Incentive Scheme for High-Efficiency Solar PV Modules (Tranche-II). This initiative, with a total outlay of Rs. 14,007 Crores, anticipates operational manufacturing capacities of 7,400 MW by October 2024, 16,800 MW by April 2025, and the remaining 15,400 MW by April 2026. thereby propelling growth in the solar PV market and influencing the microinverter sector as well.
Microinverters often come with a higher price tag compared to string inverters, posing a potential obstacle for consumers. This price differential stems from several factors, including the elevated upfront cost of components and the heightened complexity involved in both the manufacturing and installation processes. While microinverters offer certain advantages, such as individual panel optimization, longevity in life, panel monitoring, and improved performance in partially shaded conditions, the associated higher costs can be a significant consideration for those prioritizing budget considerations in their solar energy systems.
The microinverter market is segmented based on its application, categorizing it into residential, commercial, and utility sectors. In residential applications, microinverters play a crucial role in optimizing the performance and lifespan of individual solar panels, ensuring enhanced efficiency and longevity in residential solar energy systems.
For commercial applications, the use of microinverters allows for individual panel monitoring, enabling proactive maintenance measures. In the utility application, microinverters demonstrate their versatility by providing grid-supporting functionalities, including voltage and frequency regulation.
North America is projected to account for a notable share of the microinverter market. In the United States, the shipments of solar photovoltaic (PV) modules, or solar panels, surged to a record electricity-generating capacity of 28.8 million peak kilowatts (kW) in 2021, marking a notable increase from 21.8 million peak kW in 2020. This surge in solar panel shipments is attributed to the sustained demand for solar capacity in the U.S., encompassing both imports and exports, as well as domestically produced and shipped panels.
Further contributing to the growth of the solar energy sector in North America, the Canadian government has committed to investing CA$ 160 million (US$121 million) in nine solar PV projects located in Alberta. These projects, with a combined capacity of 163MW, also feature 48MW of battery storage. The strategic investment in solar PV projects, coupled with the increasing demand for solar energy, underscores the positive trajectory of the microinverter market in North America.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2022 | US$1,599.346 million |
| Growth Rate | CAGR during the forecast period |
| Base Year | 2024 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Million |
| Segments Covered |
Component Application Geography |
| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies Covered | |
| Customization Scope | Free report customization with purchase |
The Microinverter Market is analyzed into the following segments: