Solar microinverter market to increase 15 percent over next decade
The global solar microinverters market is expected to witness a CAGR of 15.3% and reach nearly $2 billion by 2026 according to the Global Solar Micro Inverters Market Size, Share, Development, Growth and Demand Forecast to 2026.
The increasing awareness toward the benefits of energy storage devices and enhanced regulatory structures have increased their penetration in the global market. Based on system type, the stand-alone segment is expected to be the largest segment of the global solar microinverters market during the forecast period. The residential segment was the largest market for solar microinverters during 2012 – 2015. The segment is estimated to be the largest market during the forecast period.
The appeal of microinverters, of course, allow power conversion at individual modules or panels, so the performance of solar PV cells are not jeopardized when one or more panels are shaded. Microinverters monitor the performance of each solar panel individually while string inverters also exhibits the performance of each string.
Growing awareness towards the use of renewable energy sources across the world have led to the large-scale adoption of solar installations. The report expects this to escalate the demand for solar microinverters during the forecast period. Additionally, the enhancement in the solar power capacity and the growing electricity needs in these countries have further strengthened the market growth in the residential sector.
Solar microinverters are used in utilities, and residential and commercial sectors. The increasing government incentives and improved renewable energy expenditure has led to increase in demand for micro inverters in residential PV installations in the U.S., Japan, China and India.
The key trend observed in the solar microinverters market is the growing focus towards integrated module systems, also known as AC modules. In the recent years, companies such as Enphase Energy, Inc., Solar World, Northern Electric and Power (NEP) and ETSolar Group (ET Solar) have been increasingly focusing on developing innovative and high performance integrated module systems, also known as AC modules, to meet the increasing electricity demands of customers in the global market.
The factors driving the growth of the solar microinverters market are:
- Increasing consumer preference towards greater efficiency of solar power systems,
- Rising electricity demand,
- Increasing government investments and tariffs on photovoltaic technology and
- Growing applications in the residential sector.
Additionally, the drop in microinverter prices along with various government initiatives have resulted in higher adoption of PV installations across the globe. Such trends are expected to propel the demand for microinverters during the forecast period.
Higher capital expenditure and significant rise in power optimizers are the major factors that are expected to hamper the growth of global solar microinverters market. Microinverters replace large parts of a central inverter, which makes them costlier as compared to other traditional inverters. Additionally, the installation of micro inverters requires the installation of a communication bus, which would further add up to the final costs.
Moreover, similar usage of power optimizers and microinverters could pose a threat to the growth in the solar microinverters market during the forecast period. The application of power optimizers as an alternative to microinverters is expected to have adverse ripple effects on the solar microinverters market.
The “Global Solar Micro Inverters Market Size, Share, Development, Growth and Demand Forecast to 2026” report is available for purchase over at Research and Markets.
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