Residential Solar PV Inverter Market Size - By Product (String, Micro), By Phase (Single Phase, Three Phase), Regional Insights, Growth Opportunity & Global Forecast, 2024 – 2032

Residential Solar PV Inverter Market Size

Residential Solar PV Inverter Market was valued at USD 6.95 billion in 2023 and is projected to grow at a 10.9% CAGR from 2024 to 2032. The increasing global energy demand, along with significant investments in rooftop solar deployment, has created a favorable business environment. The adoption of solar technologies has been encouraged by effective energy utilization norms, shifting consumer and regulatory preferences towards solar power.
 

The rise in renewable-based power generation in established markets, coupled with a moderate increase in electricity demand, presents favorable prospects for residential solar PV inverter market growth in developing economies. However, import-dependent developing markets, particularly those lacking carbon mandates or comprehensive reforms for integrating smart units, will encounter significant competition from conventional technologies.

The upfront cost of installing a residential solar PV system, including the inverter, can be relatively high. This cost can deter some homeowners from investing in solar energy, especially in regions where government incentives or subsidies are limited. The initial cost can be a significant barrier to entry for many potential residential solar customers. Although solar PV inverters have improved in terms of efficiency and performance, there are still limitations that affect their overall energy conversion. Inverters can experience power losses during the conversion process, reducing the overall efficiency of the system. Moreover, advancements in technology, decreasing costs, supportive government policies, and increasing environmental consciousness are gradually addressing these challenges influence residential solar PV inverter market growth.

COVID-19 Impact

The solar industry has faced challenges during the COVID-19 pandemic, including project shutdowns, disruptions in supply chains, delays in construction progress, and financial difficulties. These factors have had negative effects on the manufacturing and deployment of solar and related products. Despite these challenges, the solar industry is expected to experience minimal impact overall. This is due to favorable operating conditions and ongoing efforts towards clean energy practices. Organizations are focused on resuming normal operations as opportunities arise and adapting to the new normal.

The continuous demand for electricity, particularly to sustain various industrial operations in a sustainable manner, remains a driving force in the global business outlook for the solar industry. As the world strives for a green and resilient energy transition, solar energy solutions continue to be in demand.

Residential Solar PV Inverter Market Trends

The growing environmental concerns and strict government mandates to reduce emissions have prompted residential consumers to adopt effective energy conservation measures. In this context, photovoltaic inverters have become essential components in modern solar power systems over the past decade. The solar industry has witnessed significant restructuring in key power markets, impelled by rapid technological advancements in terms of product operations, efficiency, and flexibility. These advancements have played a crucial role in the evolution of photovoltaic inverters.

Manufacturers have focused on implementing variations and upgrades in manufacturing practices to enhance the performance and capabilities of inverters. This includes improving efficiency, reliability, and grid integration features. Furthermore, cost-competitiveness has become a key factor in the industry, augmenting manufacturers to optimize production processes and reduce overall costs.

Residential Solar PV Inverter Market Analysis

Based on product, the market is segmented as string and micro. The string inverter market from the residential application was exceeded USD 2.8 billion in 2022. The increasing adoption of string inverters in the residential solar PV inverter market can be attributed to their cost-effectiveness compared to micro inverters. String inverters offer better operational feasibility by allowing individual connections with a single solar module, resulting in lower failure rates and cost implications. Additionally, there is a growing regulatory concern to ensure effective interconnection of grid-tied solar installations, which further enhances the deployment potential of string inverters compared to their counterparts.

Based on phase, the residential solar PV inverter market is segmented as single phase and three phase. Single-phase PV inverters have become increasingly popular due to their operational feasibility in both small and large residential installations. Positive regulatory prospects, such as feed-in tariff schemes, have had a significant impact on the industry landscape, accelerating the adoption of single-phase inverters. While the rated capacities of these inverters may lean towards the lower end, consumers in developed economies have shown a strong inclination towards integrating advanced inverter units. Furthermore, there is a growing demand for residential solar installations worldwide as homeowners seek to reduce their reliance on traditional energy sources, lower their electricity bills, and contribute to environmental sustainability.

The European solar industry is currently undergoing a transition phase within the industrial landscape. While the recent years have seen significant growth, it is important to consider the overall picture across the continent, excluding the UK. The European industry has been steadily escalating, although the growth trajectory has undergone changes. The initial growth in the region can be attributed to Feed-in Tariff (FIT) programs implemented in countries such as Italy, Spain, Germany, and a few others. These programs provided incentives for solar investments and played a crucial role in driving the early expansion of the residential solar PV inverter market.

 Homeowners in Europe are increasingly focusing on self-consumption and energy storage solutions to maximize the use of solar energy. This trend is propelled by the desire to reduce reliance on the grid and achieve greater energy independence. Residential PV inverters are being integrated with energy storage systems to allow for efficient self-consumption of solar energy and to provide backup power during grid outages. The integration of residential PV inverters with smart home and energy management systems is gaining popularity in Europe. This integration allows homeowners to monitor and control their solar energy production and consumption in real-time, which is set to boost the demand for residential solar inverters across the region.

Residential Solar PV Inverter Market Share

Some of the key market players operating across the residential solar PV inverter market are :

• Solar Edge Technologies,Inc.
• Eaton
• Enphase Energy
• Siemens
• Sungrow
• Panasonic Corporation
• Fronius International GmbH
• Delta Electronics, Inc.
• SMA Solar Technology AG
• Schneider Electric
• TMEIC
• Tabuchi Electric Co., Ltd.
• Huawei Technologies Co., Ltd.
• Hitachi Hi-Rel Power Electronics Private Limited
• Ginlong Technologies
• SHENZHEN SOFARSOLAR CO., LTD.
• Altenergy Power System, Inc.
• Sineng Electric Co., Ltd.
• Darfon Electronics Corp.
• Canadian Solar
• General Electric
• GoodWe
• Fimer Group.

Major manufacturers across Asia Pacific, the U.S., and the Middle East & Africa are inclined toward mergers & acquisitions, strategic collaborations, partnerships, and joint ventures to further gain a competitive advantage in the market.
 

Residential Solar PV Inverter Market News:

• In November 2021, Ginlong Technologies introduced Hybrid Inverter from Solis series. This can be an ideal product for the energy storage of off grid solar PV backup This product can fills the key vent for residential customers who wants to be rely on Solis’s brand for their off grid solar power requirements. The inverters come in four versions with power rating of 4kW to 5kW in the standard version. It is able form off grid completely as well as on grid while using grid backup power.
   
• In May 2021, Schneider Electric announced safety certification named UL 9540 for its hybrid inverter XW Pro and Discover Battery’s AES (Advanced Energy System). LiFePO4 battery. This certification will simplify the design and installation approval process for residential power storage systems. The feature of LiFePO4 lithium battery will easily integrate with Schneider Electric’s hybrid PV inverters.
   

This residential solar PV inverter market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in MW & USD Million from 2019 to 2032, for the following segments:

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By Product

• String
• Micro

By Phase

• Single Phase
• Three Phase

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • Italy
  • Poland
  • Netherlands
  • Austria
  • UK
  • France
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea 
• Middle East & Africa
  • Israel
  • Saudi Arabia
  • UAE
  • South Africa
  • Egypt
  • Nigeria
• Latin America
  • Brazil
  • Chile
  • Mexico