Global Solar Inverter Market Analysis, Drivers, Restraints, Opportunities, Threats, Trends, Applications, and Growth Forecast to 2028

Global Solar Inverter Market Overview :

“The global Solar Inverter Market size is expected to be worth around US$ xx Billion by 2021 from US$ X.xx million in 2031, growing at a CAGR of X.x% during the forecast period 2021 to 2031.”

A solar inverter is an important element of a solar power system. An inverter’s basic function is to convert direct current (DC) into alternating current (AC). Features such as instantaneous conversion of DC to AC power while connected to on-grid system, growing awareness towards the use of renewable energy sources, and rising affordability of energy storage devices is representing major revenue opportunities for the market. Increasing awareness regarding fossil fuel conservation and rising clean fuel demand is expected to complement growth of the industry.

Dynamics

Solar power collection panels are used on rooftops, as well as ground-mounted for applications such as residential, commercial and utility-scale, with system ratings of 3–10 kW, 10 kW–2 MW, and > 2 MW, respectively. Moreover, governments are also setting targets and introducing polices in order to promote use of renewable energy resources, as well as to ensure reduction of carbon emissions. Despite these factors, high costs of solar inverters and high maintenance costs act as a major restraining factor for growth of this market.

Geographically, Asia Pacific is the largest power producer globally, and is the largest market for renewable energy generation across the globe. Continuous growth in industrial & commercial and utility sectors, rising requirement for high amounts of electricity, government initiative for utilization of renewable energy are some of the factors pushing market growth. According to solar power development plan by the National Energy Administration (NEA), there has been over 110 GW capacity addition to China in the 2016–2020 period.

As per news, China plans to invest 2.5 trillion yuan (US$ 364 billion) into renewable power generation by 2020. These initiatives and targets are expected to help China remain the largest solar energy producer in the world. In addition, National Solar Mission, aiming to achieve 100 GW of solar energy by 2022, has boosted solar inverter adoption, and is anticipated to increase competition in the market.

National Bank for Agriculture and Rural Development (NABARD) came forth for alternative solutions in the state of Andhra Pradesh. To promote solar and to help electricity crisis, NABARD is providing 40% subsidy for purchasing solar inverters. Ministry of New and Renewable Energy’s (MNRE’s) Jawaharlal Nehru National Solar Mission (JNNSM), which mandates for subsidy of solar lighting and solar PV systems of smaller capacity.

Global solar inverter market segmentation:

Segmentation by Type:

• Central
• String
• Micro

Segmentation by System Type:

• On-Grid
• Off-Grid

Segmentation by End-Users:

• Residential
• Commercial
• Utility

Segmentation by region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa