Utility Scale PV Inverter Market Analysis

Utility Scale PV Inverter Market Analysis

The central utility scale PV inverter market held over USD 9.8 billion revenue in 2022, on account of the rising focus toward the distributed generation technologies with the expansion of sustainable energy systems. Low operating & maintenance costs, easy installation, and upgradation of manufacturing facilities will surge the product adoption. These systems consist of centralized power control, which allow product easy management and cost optimizations, which will further stimulate the market growth. Utility-scale solar projects have gained momentum worldwide. These large-scale installations require central inverters with high power ratings to accommodate the higher capacities.
 

As a result, central inverter manufacturers focused on developing and optimizing their products for utility-scale applications. Central inverter manufacturers are continuously investing in research and development to enhance the efficiency, reliability, and performance of their products. Technological advancements included improvements in power density, thermal management, and grid integration capabilities. Additionally, some manufacturers started incorporating advanced features like data analytics, remote monitoring, and grid support functionalities into their central inverters.
 

The utility scale PV inverter market from < 1500 V inverter segment is anticipated to record 9% CAGR through 2032. Rising awareness toward the use of low CO2-intensive products to mitigate GHG emissions will stimulate the industry growth. 1500 V string inverters have gained significant traction for utility scale projects. String inverters offer various advantages including module-level MPPT, simplified installation, and improved system monitoring capabilities. These inverters were particularly popular in residential and commercial applications, where smaller to medium-sized PV arrays were deployed. These systems offer low management and maintenance, which is anticipated to sway the utility scale PV inverter market demand. The market of utility scale string inverter will reach USD 6.8 billion by 2032.
 

Policymakers, private investors, and end users have embraced innovative solutions for less than 1500 V applications as sustainable and reliable solution for electricity access. Moreover, there have been a large number of projects which have utilized 1500 V technology including 300 MW Sakaka solar PV plant in Saudi Arabia.
 

The Asia Pacific utility-scale PV inverter market will witnessed substantial growth till 2032, due to favorable regulatory reforms and increasing investments in renewable energy. However, despite the high solar capacity in these regions, there is a projected shift in the market towards other regions such as the Middle East, Africa, and Latin America. This shift is driven by factors such as favorable solar densities, economies of scale, flexible financing and delivery models, effective government policies, tax incentives, and declining technology costs. In recent years, China's solar PV installations faced challenges including limited availability of land, grid connection issues, financial constraints, and delays in policy execution, resulting in a shortfall.
 

However, the country experienced a significant surge in solar installations in 2020, followed by the commissioning of ongoing PV projects. China's solar market is expected to continue growing due to a shift in investment priorities resulting from the COVID-19 crisis and an increased focus on larger project developments to achieve lower bids and economies of scale benefits. Nevertheless, the development schedule for solar PV projects in China may face cancellations or postponements due to emerging financial issues, the absence of subsidies, and insufficient penalties for non-completion. These factors can impact the pace of solar PV project implementation in the country. Overall, the Asia Pacific region has been a key driver of the utility-scale solar industry, but a shift in market dynamics towards other regions is anticipated.