Solar PV Inverters Market Report

The major driving factor for the solar PV inverter market is the rising demand for renewable energy. Solar energy is considered one of the most workable solutions and a great alternative. Thus, the PV inverters play a major role in converting the direct current formed by solar PV modules into alternative current which can be used in residential or commercial buildings or can be stored directly into an electrical grid.

Furthermore, according to the data of the International Energy Agency, the global renewable energy capacity increased by 50% in 2023 to nearly 510 GW, with solar PV making up 75% of total additions. Also, as per Our World in Data globally, almost one-third of electricity comes from renewables such as solar energy, wind energy, hydropower, and others. Furthermore, for the year 2023, a total of 8988 TWh of renewable electricity was generated globally out of which 1,650 TWh was generated through solar power. Thus, the rising renewable electricity generation is expected to boost the demand for solar PV inverter market. Furthermore, supportive government policies can also be considered as the major driving factor for the overall solar PV inverter market.

For instance, The US Investment Tax Credit (ITC) promotes solar energy by enabling a 30% deduction of installation costs from federal taxes. This incentive lowers upfront expenses, expanding solar accessibility. The ITC's decreasing benefits post-2024 prompt immediate investments to maximize savings similarly Germany's Feed-in Tariff (FiT) program provides fixed payments to solar energy producers for up to 20 years, encouraging investment in solar installations and ensuring stable, long-term revenue. This has driven rapid solar adoption in Germany, making it a leader in renewable energy and reducing greenhouse gas emissions.

The major problem faced by the solar PV inverter is the overheating of the device which results in dysfunction. This occurs in inverters due to various factors such as poor ventilation, excessive electrical loads, high ambient temperatures, dust accumulation, and component failures. This affects the overall solar in many ways such as automatic shutdowns, reduced efficiency, potential damage to internal components, and safety risks such as fire hazards. The major cause of overheating is the installation location of the device if they are installed in enclosed spaces without sufficient airflow, heat build-up can occur, causing the inverter to overheat.

Also, excessive load can be considered as a major cause as if too many appliances are running simultaneously it may result in overloading and eventually overheating of the inverter. Also, intermittency in solar power generation poses a major challenge for solar PV inverter market. Solar power generation depends on the sunlight, which varies due to day and weather conditions. Due to lack of sunlight, solar panels are unable to generate any electricity which results in intermittent. This intermittent electricity generation creates instability in the power supply and mismatches the demand and supply of power. Also, as per the International Renewable Energy Agency (IRENA), global utility-scale solar PV reached 211GW, but only 13.1GW of storage were paired, representing only 6% of total solar capacity.

In December 2023, INVT Solar launched its latest product-XG1-5kW-S on-grid inverter at the State Business Meet2023 held in Ahmedabad and won an award in the most innovative product launch category. The Company bagged the 'State Leadership Awards 2023- Gujarat' for XG1-5kW-S, a single-phase on-grid solar inverter. The award proved INVT Solar's deep technical accumulation, strong R&D strength, and outstanding achievements.

During the on-site new product unboxing, INVT Solar demonstrated the excellent features of the XG1-5KTL-S comprehensively. Specifically designed for household solar power systems, it was part of the smallest power model (1-5kW) of the XG series inverter, demonstrating excellent cost performance. The product was an example of innovative technology with affordable prices. In October 2023, Sungrow launched its new generation of utility-scale solar-plus-storage energy solutions during REI 2023. The solutions included the innovative "1+X" modular inverter, the new generation 320kW string inverter SG320HX-20, and a new generation energy storage system, the PowerTitan 2.0. The "1+X" modular inverter was an innovative product that combined the advantages of central and string inverters. By combining eight units, the "1+X" Modular Inverter could reach 8.8 MW in capacity, offering a minimum capacity of 1.1 MW per unit.

With the latest utility-scale energy storage innovation, the battery contained 314Ah of capacity, integrated a string Power Conversion System (PCS) into the battery container, embedded strong grid support technology, and systematically featured liquid-cooled temperature control. To maximize power density, the 20-foot container was equipped with a 5MWh battery and 2.5MW power conversion system.

North America especially the United States can be considered as a lucrative market due to the rise in solar manufacturing. As per the data of International Solar Alliance solar manufacturing is on the rise due to the expansion and setting up of new factories, resulting in 155 GW of new production capacity across the solar supply chain. This includes 85 GW of solar module capacity, 43 GW of solar cells, 20 GW of silicon ingots and wafers, and 7 GW of inverters. Additionally, 65 GWh of power storage production capacity has been announced. The U.S. solar industry aims to reach 50 GW of domestic solar manufacturing capacity by 2030.

Asia Pacific can also be considered a lucrative market with the growing solar production in China and supportive government policies of India regarding solar energy can boost the market for global solar PV inverters. As per the data of the International Energy Agency the solar PV manufacturing capacity has increasingly moved towards China from Europe, Japan, and the United States over the last decade. As per statistics, an investment of US$ 50 billion is been made by China for PV supply capacity which in comparison to Europe is ten times more.