Utility Scale String Inverter Market Analysis

Utility Scale String Inverter Market Analysis

Solar power generation in utility scale facilities is becoming increasingly popular, with the power being supplied to the grid through power purchase agreements (PPAs) with utilities. Factors such as cost competitiveness and clean properties are driving the deployment of solar power, with economies of scale associated with large-scale installations driving further investments in technology integration and grid expansion worldwide.
 

Solar energy deployment is outpacing conventional power capacity additions in many regions, with solar installations being the dominant renewable technology. Promising government incentives, such as auctions, tariffs, and tax exemptions, are expected to increase investments in the solar market. Rapid technological innovation and growing public awareness are transforming PV power plants from an expensive and risk-driven industry to an economical and highly efficient one.
 

The utility scale string inverter market from three phase segment held over USD 1.5 billion revenue in 2022, due to rising awareness toward the use of low CO2-intensive products to mitigate GHG emissions. 1500 V string inverters have gained significant traction for utility scale projects. These systems offer low management and maintenance, which is anticipated to sway the market demand. Policymakers, private investors, and end users have embraced new 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.
 

Asia Pacific utility scale string inverter market is set to show tremendous growth through 2032, owing to favorable regulatory reforms and rising renewable investments. Despite high solar capacity in these regions, the market is likely to experience a significant shift to other regions including Middle East, Africa and Latin America owing to favorable solar densities, economies of scale, flexible financing and delivery models, effective government & tax policies and low technology costs. In recent past, the solar PV installations in China experienced a considerable shortfall owing to limited availability of land, grid connection, financial challenges, and delayed execution of policies.
 

However, the installations in the country experienced a significant surge in 2020 followed by the commissioning of ongoing PV projects. A shift in investment priorities due to Covid-19 crisis and increased focus toward larger project development to achieve lower bids & economies of scale benefits are likely to foster large scale PV installations in China. However, the development schedule for solar PV projects will probably be cancelled or postponed due to increasing financial issues, absence of subsidies and insufficient penalties for non-completion.