Micro-inverter Market Size, Share & Trends

Updated on : October 23, 2024

Micro-inverter Market Size

[204 Pages Report] The global micro-inverter market size was valued at USD  4.9 billion in 2024 and is estimated to reach USD 14.5 billion by 2029, growing at a CAGR of 24.1% during the forecast period from 2023 to 2024. Government subsidies, incentives, and renewable energy adoption have driven the demand for micro-inverters. Also, rising investments in solar energy and technological advancements in solar energy systems are fueling the market's growth.

Micro-inverter Market size  Forecast to 2029

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Micro-inverter Market Trends & Dynamics:

Driver: Increasing energy prices across the globe

Over the recent years, gas, coal, and electricity prices have surged to levels not seen in decades. The simultaneous increase in gas and coal prices and the rising trajectory of carbon prices in Europe have resulted in a noticeable upswing in electricity prices. These price upswings are expected to place significant upward pressure on household energy bills, presenting a potential difficulty for consumers dealing with heightened costs in the energy sector. With the ongoing escalation of traditional energy prices, homeowners and businesses are increasingly exploring alternative and cost-efficient solutions to fulfill their energy requirements. Rooftop solar panel installations powered by microinverters emerge as a compelling solution in response to this challenge.

Restraint: Limited power handling capacity

Microinverters are tailored to manage designated power ranges, and this constraint can pose challenges, especially in expansive solar installations. There are instances where a lone microinverter might be unable to control the power output from specific high-wattage solar panels. Consequently, larger systems may require multiple microinverters per panel or additional units to effectively handle the overall power generation.

Opportunity: Government incentives and policies for renewable energy

Governments worldwide have acknowledged the significance of transitioning to cleaner and sustainable energy sources to address environmental concerns and diminish reliance on traditional fossil fuels. Governments frequently provide financial incentives, tax credits, or subsidies to individuals, businesses, and utilities investing in solar energy infrastructure to encourage the adoption of solar power systems. For example, the government of India offers subsidies ranging from 30% to 90% for on-grid solar systems, hybrid solar systems, and solar water pumps. Additionally, in the US, subsidies for renewable energy reached USD 15.6 billion in 2022. These incentives can substantially impact the economic viability of solar installations, rendering them more financially feasible for consumers and businesses.

Challenge: Complexity during installations

The installation complexity is a notable hurdle for the micro inverter industry. In contrast to string inverters, usually centralized in a solar power system, microinverters are situated on or near individual solar panels. This decentralized positioning demands a more intricate installation procedure, given that each microinverter must be connected to its respective solar panel. This complexity extends the time and labor necessary for installation, potentially resulting in increased overall installation expenses. Furthermore, the requirement for specialized knowledge and training among installers presents an additional challenge, as not all solar technicians may be acquainted with the distinctive demands of micro-inverter setups.

Micro-Inverter Market Ecosystem

The Micro-inverter market size is consolidated, with major companies such as Enphase Energy, Altenergy Power Systems, Hoymiles, Ningbo Deye Inverter Technology Co Ltd, Chilicon Power LLC, and numerous small- and medium-sized enterprises. Almost all players offer various products in micro-inverter. These products are used for residential, commercial, and PV power plant applications.

Micro-inverter Market Share

Based on communication technology, the wired segment is expected to dominate during the forecast period.

Wired communication methods offer a stable and reliable data transfer environment. This is crucial for micro-inverters, as consistent and uninterrupted communication is essential for their effective performance in solar energy systems. Wired communication typically provides higher data transfer speeds compared to wireless options. This is advantageous for micro-inverters, especially in scenarios where large amounts of data need to be transmitted quickly, such as monitoring and optimizing solar system performance. These advantages of wired over wireless communication technology is fueling the market growth.

Based on application, the residential segment is projected to have the largest market share during the forecast period

The residential solar market has experienced significant growth in recent years, with more homeowners adopting solar energy systems to reduce electricity costs and environmental impact. This surge in residential solar installations naturally contributes to the prominence of micro-inverters. Micro-inverters are effective in mitigating the effects of shading and panel mismatch issues. In residential settings, shading from nearby structures or trees is more likely, and micro-inverters enable individual panels to operate optimally, even if others are partially shaded. Micro-inverters are generally easier to install and maintain than centralized string inverters, making them more appealing for residential solar installations. Moreover, simplified installation processes can save homeowners and installers costs. Some regions offer specific regulatory support or financial incentives for residential solar installations, further driving this sector's market share of micro-inverters. These advantages are leading to the installation of micro-inverters for residential applications.

Micro-inverter Market Regional Analysis

Based on region, the Asia Pacific region is projected to grow at the highest CAGR for the micro-inverter market

Numerous countries in the Asia Pacific region, including India, China, and Australia, are actively engaging in investments and advocacy for adopting renewable energy sources. The rising awareness of environmental sustainability and the imperative to diminish carbon footprints have resulted in a notable upswing in the request for solar power. This heightened demand is contributing to the expansion of the micro-inverter market size. Moreover, these countries are implementing supportive policies, offering financial incentives, and promoting research and development initiatives to further accelerate the adoption of solar technologies, particularly micro-inverters, in their pursuit of sustainable energy solutions.

Micro-inverter Market by Region

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Top Micro-inverter Companies: Key players

The micro-inverter companies is dominated by a few globally established players such as

• Enphase Energy (US),
• Altenergy Power Systems (US),
• Hoymiles (China),
• Ningbo Deye Inverter Technology Co Ltd (China),
• Chilicon Power LLC (US),
• Econversion GmbH & CO. KG (Germany),
• Envertech (China), ZJBENY (China),
• Bluesun Solar Co., Ltd. (China), and
• Solar Panels Plus (US).

Micro-inverter Report Scope :

Micro-inverter Market Highlights

This research report categorizes the micro-inverter market based on offerings, communication technology, type, power rating, connection type, application, and region

Recent Developments in Micro-inverter Industry

• In November 2023, Enphase Energy, Inc., a renowned global energy technology firm and the primary provider of microinverter-based solar and battery systems worldwide, unveiled its latest offering – the IQ8 Commercial Microinverters. This release includes the IQ8P-3P Microinverter, explicitly designed for the North American small commercial solar market.
• In May 2023, APsystems introduced the latest Wi-Fi & Bluetooth EZ1 Microinverter series. This single-phase microinverter solution is designed for balcony installations and do-it-yourself (DIY) PV systems, and it was unveiled at the 16th SNEC International Photovoltaic Power Generation and Smart Energy Conference & Exhibition in Shanghai, China.
• In March 2023, Hoymiles introduces the cutting-edge HMS-2000DW microinverter series, tailored for high-powered PV modules and featuring seamless Wi-Fi integration. Tailored for small home solar systems, these microinverters offer enhanced efficiency and reduced operational costs compared to alternative devices.
• In January 2023, Hoymiles launched innovative microinverters to reduce initial customer costs without compromising overall performance. The HMS-C series is accessible in North America and Oceania, while the HMS-D series is available in Latin America and the Asia Pacific region.
• In August 2022, Enphase Energy, Inc., a prominent global energy technology firm and the top microinverter-based solar and battery systems provider, announced its agreement to acquire GreenCom Networks AG. Headquartered in Munich, Germany, GreenCom Networks specializes in Internet of Things (IoT) software solutions, enabling users to connect and oversee various distributed energy devices within their homes.
• In June 2020, Enphase Energy partnered with Australia-based Excel Power. Under this partnership, Excel Power installed a 50 kW Enphase micro-inverter-based system for Wippells Autos, a Jaguar and Land Rover dealer based in Toowoomba City, Queensland (Australia). 

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