Solar micro inverters are electronic devices that convert the variable direct current (DC) output of a solar photovoltaic (PV) panel into a utility frequency alternating current (AC) that can be fed into a commercial power grid or used by a local, off-grid electrical network. Micro inverters are installed close to each solar panel in an array, which maximizes energy production from each panel and prevents loss of production from partially shaded panels or those affected by module mismatch. They are considered advantageous over traditional string or central inverters as they are scalable, more flexible and improve the energy yield from solar power systems.
The global solar micro inverter market is estimated to be valued at US$ 323.28 Mn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing demand for solar installations in commercial and residential sector: The increasing awareness about renewable energy resources and implementation of favorable government policies and incentives is driving the installations of solar photovoltaic systems across commercial and residential buildings. As micro inverters maximize the energy output from each solar panel, their demand is increasing from solar installers to enhance the efficiency of solar power systems in commercial rooftops, industrial facilities and homes.
Scalability and flexibility offered by micro inverters: Micro inverters are easily scalable as additional micro inverters can be added whenever solar capacity is expanded. They provide flexibility to install solar panels individually without needing to install an entire solar array at once. This enables property owners to start small and expand solar capacity over time according to their budget and needs. Their modular nature and easy installation is promoting the growth of solar micro inverter market.
Segment Analysis
The solar micro inverter market is dominated by the residential segment which accounts for over 60% market share. The increasing installations of rooftop solar panels in residential buildings across the world is driving the growth of this segment. The ease of installation and optimized energy production through micro inverters makes them a preferred solution for residential solar systems.
PEST Analysis
Political: Favorable government policies and regulations supporting the adoption of renewable energy in many countries is boosting the solar micro inverter market. Subsidies and tax incentives for both residential and commercial solar installations positively impact the demand.
Economic: Declining prices of solar panels and micro inverters have increased the affordability of solar systems. The lower levelized cost of energy from solar also improves its economic viability.
Social: Rising environmental awareness among consumers is driving the widespread acceptance of solar energy. Homeowners and building owners actively look for ways to reduce carbon footprint through clean energy solutions like rooftop solar systems.
Technological: Advancements in power electronics and MPPT technologies have enhanced the efficiency and power density of micro inverters. Their lightweight and compact design coupled with built-in monitoring capabilities also add to their appeal.
Key Takeaways
The Global Solar Micro Inverter Market Share is expected to witness high growth over the forecast period supported by favorable renewable energy policies worldwide.
The Asia Pacific region currently dominates the market owing to large solar installations in China, Japan, and India.
Key players like Enphase Energy, SolarEdge Technologies, and Altenergy Power Systems collectively hold over 50% of the market share due to their early mover advantage and robust product portfolios. With average system prices declining, micro inverters are becoming competitive against central/string inverters for medium and large commercial rooftop installations as well. The market is also expected to expand into ground-mounted agricultural and utility-scale solar projects in the coming years.
