The Solar Microinverter and Power Optimizer Market size is expected to reach over USD 3.5 billion by 2030 and is set to grow at 13% CAGR during the forecast period 2021 to 2030.
Increasing demand for reliable and improved power harvesting systems will drive the global market revenue.
Enhanced power point tracking coupled with panel level monitoring will positively impact the market. Flexibility, compact size, lower DC voltage requirement are some of the other additional features which will further favor the business growth.
Growing adoption of photovoltaic systems among residential and commercial applications will propel the market share from 2016 to 2024. Favorable government incentives including tax rebate, low import duty, financial assistance and soft loans would further complement the business landscape.
Solar microinverters and power optimizers offer similar benefits to solar PV systems but operate in different ways. Both systems are mounted inside solar panels and allow the PV cells to perform optimally when one or more panels in the PV system are shaded. The primary difference between the two is that microinverters directly convert the DC current produced by the solar panels into the AC current that can be utilized by household appliances, while power optimizers are used to tune the performance of the solar panel through maximum power point tracking (MPPT), which essentially is a way to condition the DC current generated by the PV cells before sending it to a central inverter.
Strong adoption trends for clean energy technologies including PV systems among residential and commercial end consumers will stimulate the solar microinverter and power optimizer market share over the forecast period. The U.S. federal government has introduced Solar Investment Tax Credit (ITC) scheme under which 30% tax credit is provided for deployment of PV systems across residential and commercial complexes.
Technology innovation pertaining to power harvesting systems coupled with decreasing component prices will drive the solar microinverter and power optimizer market. Companies including Solar Bridge and Tigo are working towards the development of integrated module-inverter smart technology to enhance the efficiency of PV architecture and thereby positively impacting overall return on investments of the end consumer.
Key Trends and Opportunities
The substantial reduction in costs of microinverters and power optimizers and the continuous research and development efforts of manufacturers aimed at refining the technologies, are some of the key factors that will help the already flourishing market gain momentum over the report’s forecast period.
Meanwhile, the regulatory scenario pertaining to the safety of solar panel systems is shaping in a way that could change consumer’s perception of microinverters and power optimizers. The National Electric Code (NEC), the preeminent electrical installation code in the United States, has made it mandatory for solar panel arrays to have a rapid shutdown feature, with a switch to the feature near the solar PV setup, in its 2014 version.
Some analysts speculate that the Code will eventually make it mandatory for solar systems to include functionality of shutting off individual panels remotely with the help of a central switch. Some of the largest players in the microinverters and power optimizer industry have already started to monetize this opportunity by incorporating rapid shutdown features in their new product lines.
As the regulatory framework in other regional markets becomes more wary of the level of safety of solar power systems, similar regulations are projected to be instituted and proactive vendors will benefit from this changing regulatory environment.
Apart from these two opportunities, vendors can also benefit from the rising affordability of energy storage devices for solar power systems. Home batteries running on solar power have the potential of becoming the face of mainstream energy storage systems of the near future.
Of the key regional markets for solar microinverters and power optimizers examined in the report, North America leads the global market, with a dominant share attributed to residential solar PV installations. However, the market may soon witness expansion in other regional markets such as Asia Pacific, as the dropping costs of microinverters and power optimizers seek to lure cost-sensitive regions with untapped growth opportunities.
The market is presently dominated by companies such as SolarEdge and Enphase. However, the market’s competitive landscape is rapidly changing, with a rising number of solar PV manufacturers now developing products readily incorporated with microinverters and power optimizers. The market has also begun to see a favorable rise in investments from capital ventures and the entry of well-funded startups. This is rapidly changing the competitive landscape of the global solar microinverters and power optimizers market.
Some of the notable industry players are SolarEdge Technologies, Enphase Energy, Tigo Energy, Altenergy Power System, SunPower Corporation, Ampt, Delta Energy Systems, KACO New Energy, Array Power, Solantro, Alencon Systems, i-Energy, Chilicon Power, Petra Systems, and Sparq Systems.
This report provides comprehensive analysis of
This report is a complete study of current trends in the market, industry growth drivers, and restraints. It provides market projections for the coming years. It includes analysis of recent developments in technology, Porter’s five force model analysis and detailed profiles of top industry players. The report also includes a review of micro and macro factors essential for the existing market players and new entrants along with detailed value chain analysis.
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