Solar PV Inverters Market Report

Green building is the construction of structures that use ecologically sustainable and resource-efficient procedures throughout the building's lifecycle, from siting to design, operation, construction, maintenance, renovation and deconstruction. Solar panels are an efficient solution for a building to achieve its sustainability requirements. These PV power panels may give an abundance of environmentally friendly sources of energy, lowering or eliminating the requirement for electricity usage. PV inverters, or controlled admission of clean, pollution-free renewable energy, can lower the building's electrical demand and save energy. Furthermore, using renewable power in commercial buildings can cut the energy consumption of the building's electrical appliances by 10% to 20%. Thus, by implementing optimal PV panel solutions, the overall energy cost for numerous commercial and institutional buildings may be lowered by one-third. The market demand for solar PV inverters is driven by the rising number of installations.

Central inverters, pivotal in large-scale solar photovoltaic systems exceeding 100 kWp, are integral in converting DC power from solar arrays into AC for grid integration. These devices, ranging from 50kW to 1MW, can be installed both indoors and outdoors and often incorporate low-frequency transformers for voltage enhancement and output isolation. With global electric grid standards varying, manufacturers tailor these inverters to meet specific regional requirements, predominantly as three-phase systems. Sungrow's innovative 1+X Modular Inverter represents the forefront of central inverter technology, positioning it as a leading choice for expansive utility solar projects. The market is projected to grow due to increasing electricity demands, governmental decarbonization efforts, and decreasing inverter costs.

The main reasons that will prevent market expansion in the near future are the significant heat loss in big solar inverters, expensive costs, and the absence of monitoring at the panel level. String inverter technological difficulties are projected to hamper the expansion of the solar PV inverters market throughout the forecast period. These advanced technology devices that are complex may lead to high maintenance fees and additional technical problems. Additionally, there is a shortage of skilled technicians available to install, maintain and repair solar PV inverters, which can limit their use especially in less urbanized regions. The market for such products may also be affected by regulatory insecurities including changing government regulations as well as incentives. The inconsistency of solar energy poses challenges for storing energy and integrating it into the grid, leading to a decrease in system reliability. Emerging renewable technologies like wind or hydrogen can influence the demand for solar PV systems. Additionally, challenges related to terminating life cycle procedures for outdated inverters produce difficulties to achieving environmental sustainability.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In June 2024, the CPC 9th Century Photovoltaic Conference and PVBL 12th Global Photovoltaic Brand Rankings Ceremony took place in Shanghai, highlighting key advancements in the solar PV industry. This year's top global photovoltaic inverter brands were unveiled, with Sungrow and Huawei leading the pack. Sungrow's revenue surged to CNY 27.65 billion, marking a 61% increase, while Huawei achieved a new revenue high of CNY 52.607 billion. Despite the competitive landscape, the inverter sector has stabilized, with leading companies advancing core products like central and string inverters.

Furthermore, in June 2024, SolarEdge Technologies launched its advanced SolarEdge TerraMax Inverter and H1300 Power Optimizers in Germany. This new SE300K1 inverter targets small-to-medium utility-scale PV installations, designed for complex terrains and dual-use sites like floating and Agri-PV. With up to 297kW output, 99% efficiency, and 200% DC-oversizing, the system offers significant energy production gains and cost reductions. Integrated with the SolarEdge ONE for C&I platform, it enhances module-level monitoring, reduces O&M costs, and ensures compliance with German grid regulations.

The solar PV inverter market was dominated by Asia-Pacific region. The majority of demand is anticipated to originate from China, which is also the world's largest producer of solar energy. According to the IEA, China issued its 14th Five-Year Plan in June 2022, with an ambitious goal of 33% renewable energy production by 2025, including an 18% target for wind and solar technology. In China, there has been a greater focus on solar inverters that provide a zero-voltage ride through (ZVRT) system. To satisfy the scheme's requirements, the solar PV power plants must run continuously. The country has the highest solar energy production capacity in the whole world, making this even more significant. With rising concerns about pollution caused by development throughout the world, particularly in Asia-Pacific, regional solar power generation has acquired significant traction.

The Indian government set an ambitious aim of 175 GW of renewable energy generation by 2022 as part of its Paris Agreement. Out of the 175 GW, 100 GW were allocated for solar capacity, with 40 GW (or 40%) anticipated to be supplied through decentralised and rooftop solar projects. In order to meet this huge target, the government introduced numerous new programmes in 2019, including solar rooftop phase 2, PM-KUSUM, and the development of ultra-mega renewable energy power parks (UMREPPs). India's solar potential exceeds 750 GW, and the country's energy security scenario indicates that roughly 479 GW of solar PV installed capacity might be achieved by 2047. Solar power in India has already reached grid parity, which stimulates the use of solar power as a mainstream energy source, propelling capacity increases in the utility-scale and rooftop solar segments. Such rapid increase in the manufacturing sector is likely to support the growth of the market throughout the forecast period. As a result, Asia-Pacific is anticipated to dominate the solar PV inverter market throughout the forecast period, owing to several government initiatives made by India, China, Malaysia and others.