A solar micro inverter is plug-and-play equipment used in photovoltaic installations that converts direct current generated by a single module to alternating current. Contrasting to conventional central inverters, micro inverters work on Module Level Power Electronics (MLPE), in which power conversion takes place at the individual module level. This, in turn, reduces the negative effects of module mismatch and enhances overall efficiency of the system. Furthermore, micro inverters enable module-level monitoring, enhanced design flexibility, easier installation, and better safety than conventional inverters. Micro inverters and power optimizers are collectively known as module-level power electronics, wherein it offers significant efficiency over conventional systems and deploys Maximum Power Point Tracking (MPPT). This, in turn, maximizes the output from each module and enhances efficiency of the overall system.
The global Solar Micro Inverter Market was accounted for US$ 231 Mn in terms of value in 2021 and is expected to grow at CAGR of 18.3 % for the period 2022-2030.
Market Trend
Increasing merger and acquisition activities
Key players in the market are focused on merger and acquisition activities, in order to enhance the market presence. For instance, in 2014, SunPower Corp. acquired VC-funded SolarBridge Technologies, Inc., to expand its product offerings by including factory-integrated AC modules. Moreover, in August 2011, SunEdison acquired GreenRay Solar to sell its modules coupled with micro inverter technology.
Constant price drops and reducing margins
Dropping prices have been a continual scenario in the global solar micro inverter market and the trend is expected to continue during the forecast period. For instance, Enphase’s top management stated the company would scrub out 50% of the device's cost in two years and reach parity with string inverters at 10 cents per watt. Moreover, micro inverter companies are facing direct competition from providers of lower-cost solutions. In order to sustain among other players, many companies have significantly reduced prices of their products, which in turn, reducing gross margin. For instance, Enphase financials from Q1-16 indicate that the company’s gross margin percentage reduced from 32.6% in Q1-15 to 18.8%.
Market Opportunity
Advent of fully embedded products can provide major growth opportunities for market players
Embedded micro inverters can fully be integrated into the junction box of a module to create a more reliable and cheaper AC module. This, in turn, offers major cost advantage to customers, which replaces conventional junction box arrangement. As of 2015, additional savings of US$ 0.02 – 0.03/watt were noted, but these savings are not yet passed to the customer due to significant price mark-up for embedded systems. Moreover, this technology is being incorporated by DC optimizer manufacturers to develop embedded mobiles that are called smart modules. Currently, only LG offers a fully integrated AC module – MonoX ACE – and claims capability of saving up to 41% in terms of installation time as compared to conventional systems but comes with only 10 years warranty and costs significantly more.Rise in the Popularity of Electric vehicles
High potential Indian market can offer significant business opportunities
India is targeting 100GW of solar installations by 2022 while status quo being a meager 7.6GW on May 31, 2016. Of this, 40 GW is expected to come from rooftop installations, fuelling the demand for micro inverters in the country. According to Coherent Market Insights’ analysis, revenue from the India solar micro inverters market is expected to expand at a significantly high CAGR of 30% over 2016–2026, and revenue contribution from the market in India to Asia Pacific is expected to increase to 8%. Key companies in the market can capitalize on these opportunities by marketing their solutions in a promising way for Indian commercial and industrial segments.
Market Restraint:
Rising adoption of DC optimizer is expected to hinder the global solar micro inverter market growth over the forecast period
DC optimizers are relatively less expensive than micro inverter solutions, thereby offering a major advantage over the micro inverters. For instance, in 2015, the average selling price of a micro inverter stood at US$ 0.51 per watt; whereas the cost of a DC optimizer was US$ 0.12 per watt. However, as an optimizer system requires a central/string inverter and complex DC wirings, the overall cost of a micro inverter system is only 10–20% higher than that of an optimizer system. Thus, economic solutions offered by DC optimizer is expected to hinder the market growth in the near future.
Solar Micro Inverter Market- Impact of Coronavirus (Covid-19) Pandemic :
Due to the Covid-19 almost each and every industry got heavily impacted due to the various rules imposed by government on the manufacturing of vehicles. The pandemic has imposed lockdown which has led various companies to shutdown for months. Due to this majority of company stopped the production of power-generating inverters. This cause huge impact on the revenue of solar micro inverter market. Moreover, as China is the largest market for solar energy generation, the slowdown in the country’s economic growth has affected the overall generation and renewable energy investment globally. The country is a leader in terms of solar photovoltaic installations and the production of solar inverters and PV panels.
However, as per CMI analysis, the solar micro inverter market is expected to recover in upcoming years.
Competitive Scenario
Key players operating in the global solar micro inverter market are SunPower Corporation, Enphase Energy Inc., iEnergy Co. Ltd., Altenergy Power System Inc., Chilicon Power, LLC, SMA Solar Technology AG, Sparq Systems, SMA Solar Technology AG, Northern Electric and Power Co. Ltd, ABB Ltd., LG Electronics, and Darfon Electronics Corporation.
Recent Developments:
Forecasted North America is expected to hold a dominant position in the Global Automotive Motor Market in 2022
Statistics:
North America region dominated the global Solar Micro Inverter Market in 2021, accounting for 56% share in terms of value, followed by Asia Pacific, Europe, Middle East and Africa and Latin America.
Figure 1: Global Solar Micro Inverter Market Share (%), By Region, 2021
North America Solar Micro Inverter Market is expected to witness a CAGR of 56.0 % over the forecast period.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 231 Mn |
| Historical Data for: | 2017 to 2020 | Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 18.3 % | 2030 Value Projection: | US$ 715.7 Mn |
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| Companies covered: |
SunPower Corporation, Enphase Energy Inc., iEnergy Co. Ltd., Altenergy Power System Inc., Chilicon Power, LLC, SMA Solar Technology AG, Sparq Systems, SMA Solar Technology AG, Northern Electric and Power Co. Ltd, ABB Ltd., LG Electronics, and Darfon Electronics Corporation. |
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North America Solar Micro Inverter Market is expected to be one of the prominent region in the global market and witness high growth during the forecast period. This is owing increasing demand for Solar inverters in emerging economies such as United States, and Canada. Moreover, increasing installations of solar products such as solar panels is one of the major factors that is expected to increase growth of the market over the forecast period.
Figure 2: Global Solar Micro Inverter Market (US$ Mn) Analysis and Forecast, 2022 – 2030
The Solar Micro Inverter Market was valued at US$ 311.5 Mn in 2022 and is expected to reach US$ 715.7 Mn by 2030, growing at a CAGR of 18.3% between 2022 and 2030.
A solar micro inverter or also referred to as a microinverter is an electronic device used to convert direct current (DC) into an alternating current (AC) generated by a single solar module. Generally, the output from several microinverters can be combined and fed to the electrical grid. Microinverters provide numerous advantages including, module-level monitoring, easier installation, enhanced design flexibility, offers better safety than conventional inverters, etc.
Furthermore, micro-inverters enable module-level monitoring, enhanced design flexibility, easier installation, and better safety than conventional inverters. Micro inverters and power optimizers are collectively known as module-level power electronics, wherein it offers significant efficiency over conventional systems and deploys Maximum Power Point Tracking (MPPT). This, in turn, maximizes the output from each module and enhances efficiency of the overall system.
The Global Solar Micro Inverter Market was valued for US$ 231 Mn in 2021.
Market Dynamics
An AC module is a photovoltaic module that has an integrated microinverter. It offers several added benefits, which is expected to make integrated microinverter systems fastest-growing during the forecast period. For instance, it can replace junction box and shorten DC wiring, which saves up to US$ 0.03/watt and enhances safety, reduces installation time on integration thereby saving 30-50% in labor costs. Moreover, advance solar inverters such as micro solar inverters offer numerous advantages over the conventional string and central inverters such as high energy yield, module level monitoring abilities, longer life cycles, enhanced safety, betters flexibility, simplicity, and higher labor efficiency, and no single point of failure. These prime factors have increased the adoption of micro inverters in the photovoltaic industry in the recent past. Therefore, these benefits are expected to boost the global solar micro inverters market growth over the forecast period.
Key features of the study:
Detailed Segmentation
“*” marked represents similar segmentation in other categories in the respective section.
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