Microinverter Market Size, Share, Opportunities, And Trends By Component (Hardware, Software, Services), By Application (Residential, Commercial, Utility), And Geography - Forecasts From 2024 To 2029

The microinverter market was valued at US$1,599.346 million in 2022.

A micro-inverter is a device designed to connect to an individual solar panel, effectively transforming the direct current (DC) generated by the panel into alternating current (AC). This AC can then be utilized to power household appliances or directed into the grid for energy credits. Unlike string inverters, which manage the output of an entire string of panels, micro-inverters operate at the level of a single panel, providing more precise control. In a solar power system employing micro-inverters, each microinverter is installed at the site of an individual solar panel. This stands in contrast to centralized string inverters commonly found in solar systems, where a single inverter typically manages the entire system. Most solar panel setups using microinverters involve the installation of one microinverter on each panel.

Microinverters fall under the category of Module-Level Power Electronics (MLPE) because each operates independently at the panel site, offering a beneficial solution for intricate installations or those with partial shading. Unlike traditional string inverter setups, where the performance of all panels on the same string is constrained by the lowest-performing panel, microinverters ensure each solar panel operates independently. Even if one panel is not producing as much electricity as others, the rest can continue to perform efficiently. It's important to note that the size of each microinverter is determined by the panel's size and its electricity production capacity. The advantages of micro-inverters, such as improved performance in complex installations and partial shading scenarios, make them a compelling option in certain solar power system setups.

Market Drivers

• Expansion of the renewable energy sector

The expansion of the renewable energy sector emerges as a pivotal catalyst driving the demand for microinverters. Fueled by the global energy crisis, solar photovoltaic (PV) and wind are poised to orchestrate the most substantial annual surge in new renewable capacity, as highlighted in a recent report by the International Energy Agency (IEA). Projections indicate a remarkable increase of 107 gigawatts (GW), constituting the largest absolute rise ever, culminating in a total surpassing 440 GW by 2023. This dynamic expansion spans the globe's major markets, with renewables playing a pivotal role in Europe's response to the energy crisis, experiencing accelerated growth in the region. Additionally, new policy measures are instrumental in driving significant capacity increases in the United States and India over the next two years. Notably, China is steadfast in consolidating its leading position and is poised to contribute almost 55% of the global additions to renewable power capacity in both 2023 and 2024, underscoring its central role in the evolving landscape of renewable energy.

• Government support for Solar PVs

In China, the Central government has initiated the phased removal of domestic subsidies for solar photovoltaic (PV) modules, emphasizing technological efficiency, production cost optimization, and improved grid integration. Adhering to ad hoc policies, there is a concerted effort to augment the role of domestic markets. Notably, in 2021, China accounted for 36% of global solar demand while dominating the market with 97% of wafers, 75% of modules, and 85% of cell manufacturing.

Meanwhile, in India, the government has allocated a substantial capacity of 39,600 MW for domestic solar PV module manufacturing across 11 companies under the Production Linked Incentive Scheme for High-Efficiency Solar PV Modules (Tranche-II). This initiative, with a total outlay of Rs. 14,007 Crores, anticipates operational manufacturing capacities of 7,400 MW by October 2024, 16,800 MW by April 2025, and the remaining 15,400 MW by April 2026. thereby propelling growth in the solar PV market and influencing the microinverter sector as well.

Market Challenges

Microinverters often come with a higher price tag compared to string inverters, posing a potential obstacle for consumers. This price differential stems from several factors, including the elevated upfront cost of components and the heightened complexity involved in both the manufacturing and installation processes. While microinverters offer certain advantages, such as individual panel optimization, longevity in life, panel monitoring, and improved performance in partially shaded conditions, the associated higher costs can be a significant consideration for those prioritizing budget considerations in their solar energy systems.

• By application microinverter market is segmented into residential, commercial, and utility

The microinverter market is segmented based on its application, categorizing it into residential, commercial, and utility sectors. In residential applications, microinverters play a crucial role in optimizing the performance and lifespan of individual solar panels, ensuring enhanced efficiency and longevity in residential solar energy systems.

For commercial applications, the use of microinverters allows for individual panel monitoring, enabling proactive maintenance measures. In the utility application, microinverters demonstrate their versatility by providing grid-supporting functionalities, including voltage and frequency regulation.

North America is anticipated to hold a significant share of the microinverter market.

North America is projected to account for a notable share of the microinverter market. In the United States, the shipments of solar photovoltaic (PV) modules, or solar panels, surged to a record electricity-generating capacity of 28.8 million peak kilowatts (kW) in 2021, marking a notable increase from 21.8 million peak kW in 2020. This surge in solar panel shipments is attributed to the sustained demand for solar capacity in the U.S., encompassing both imports and exports, as well as domestically produced and shipped panels.

Further contributing to the growth of the solar energy sector in North America, the Canadian government has committed to investing CA$ 160 million (US$121 million) in nine solar PV projects located in Alberta. These projects, with a combined capacity of 163MW, also feature 48MW of battery storage. The strategic investment in solar PV projects, coupled with the increasing demand for solar energy, underscores the positive trajectory of the microinverter market in North America.

Market Developments

• November 2023-  TSUN successfully secured over RMB 150 million in Series B funding, marking a significant milestone in its pursuit of advancing innovation in photovoltaic technology and sustainable energy solutions. The capital raised in this funding round will be strategically allocated to several key areas. A substantial portion will be invested in the construction of automated production lines, the expansion of production capacity, and the technological enhancement of core products, particularly microinverters. Moreover, the funds will play a pivotal role in expanding both domestic and international business channels, solidifying and extending TSUN's influence within the photovoltaic industry. Notably, TSUN's microinverter product portfolio, which includes the Gen3, Gen3 Plus, and TITAN series, covering power ranges from 300W to 3000W, is positioned for further innovation and market expansion fueled by this strategic funding infusion.
• December 2023-  Enphase Energy, Inc., a prominent global energy technology company and a leading provider of microinverter-based solar and battery systems, introduced its most robust Enphase® Energy System™ tailored for customers in Italy. This latest system incorporates the cutting-edge IQ® Battery 5P and IQ8™ Microinverters, showcasing the company's commitment to advancing energy solutions. The modular design of the IQ Battery 5P comes with a 5 kWh capacity, offering a flexible and scalable energy storage solution. Complementing this, the newly introduced IQ8 Microinverters deliver peak AC power up to 384 W, supporting the latest high-powered solar modules.
• April 2023-  Hoymiles unveiled a new range of 4-in-1 three-phase microinverters, specifically engineered for small commercial or industrial solar systems. With a focus on maximizing energy yield for customers, Hoymiles prioritizes delivering products that excel in technical performance. The brand consistently reviews and enhances its existing product offerings to ensure optimal solutions for diverse markets. The newly introduced HMT three-phase microinverters present three power options – 1600 VA, 1800 VA, and 2000 VA, catering to the needs of commercial and industrial applications. Currently available in Europe and the Asia-Pacific region, a version tailored for American customers is anticipated to be released shortly. This initiative reflects Hoymiles' ongoing commitment to providing innovative and effective solar solutions for varying market demands.

Company Products

• IQ8A Microinverter (MC4)- IQ8A Microinverter (MC4), is a groundbreaking innovation in the industry. The Q8A Microinverters stand out as the first grid-forming microinverters featuring split-phase power conversion capability, ensuring efficient conversion of DC power to AC power. At the core is an application-specific integrated circuit (ASIC), serving as the brain of the system. This ASIC empowers the microinverter to seamlessly operate in both grid-tied and off-grid modes, offering a versatile solution for various energy system configurations. Fabricated using advanced 55nm technology, the chip incorporates high-speed digital logic, enabling super-fast response times to change loads and grid events. This capability is instrumental in mitigating constraints on battery sizing for home energy systems, ensuring optimal performance and adaptability to dynamic energy demands.
• Micro inverter(Texas Instruments Incorporated)-    Product features, integrated circuits, and reference designs, contributing to enhanced power density and efficiency while facilitating real-time communication and monitoring. Real-time communication and monitoring capabilities are integrated to enable swift and efficient data exchange, providing timely insights into system performance. Safety considerations are paramount, particularly in managing high-voltage outputs, with solutions prioritizing robust safety measures to ensure secure and reliable microinverter operation. This holistic approach addresses key design requirements, advancing power efficiency, compact design, communication capabilities, and safety in the domain of solar energy conversion.
• APsystems QT2 Microinverter- The APsystems QT2 Microinverter is a cutting-edge solution designed for 3-phase grid connections, catering to both 208V and 480V systems. With its innovative features, a single unit seamlessly connects to four modules, each capable of producing over 600W, incorporating dual maximum power point tracking (MPPT) for optimized performance at the module level, and providing precise module-level DC voltage control. The QT2 Microinverter boasts impressive power output capacities, offering 1728W for the 208V variant and 1800W for the 480V variant. Notably, the QT2 Microinverter operates with a native 3-phase configuration (L1, L2, L3), enhancing safety measures, the QT2 Microinverter features an integrated safety protection relay, ensuring the secure and reliable operation of the system.

Microinverter Market Scope:

Market Segmentation

• By component
  • Hardware
  • Software
  • Services
• By Application
  • Residential
  • Commercial
  • Utility
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Others