The global solar microinverter water market is segmented based on end-users, type, and connectivity. End users (residential end-users and commercial end-users), type (single-phase, three-phase), connectivity (Standalone, On-Grid), are the major focus areas considered while analyzing and defining the installation of solar microinverters at the global scale. In 2018, the residential end-users dominated the global solar microinverter market with a maximum share in terms of revenue. Based on estimation, the segment occupied 77.9% share. Increasing disposable income as well as rapid urbanization along with changing lifestyles, rising education and health awareness among the consumers with respect to conservation of energy have catalyzed the demand for installation of solar microinverters among the residential households. The factors would help the segment to grow at a faster rate of 27.53% during the forecast period (2019-2025). However, strengthening real estate development along with stimulating preference for safety and reliability has also contributed towards rapid rise in sales of solar microinverters in recent years and is also anticipated to register highest CAGR over the forecast period.
Initially, the traditional solar systems consisted of only one inverter. Therefore, in case of failure of an inverter, there was no alternate energy transfer. Hence to resolve this issue, the idea of string inverter was proposed and implemented. However, even with string inverters, a PV system was not suitable as a plug and play device for domestic applications. Therefore, it was considered desirable to design systems that have inverters inside the PV modules which ensure the stable operation and MPPT for each and every module. This type of module, also known as AC module, can be defined as a combination of a single module and a single power electronic inverter that converts light into electrical alternating (AC) power when it is connected in parallel to the network. The primary functions of microinverters are to extract maximum power from its companion solar panel using advanced MPPT algorithms and to convert the panel output voltage to AC. This AC power is online and can be either grid-tied or directly connected to load. The average life of microinverter based systems is about 25 years because of low rise of internal temperature and elimination of bulky electrolytic capacitors. Such systems have a better physical and economical scalability as compared to the string inverters.
4.1.1 Advantages of Microinverters:
• Reliability: Microinverters increase the reliability of solar power systems as the failure of a single piece or solar panel affects only that solar panel and not the whole solar array of solar panels in contrast to traditional inverters.
• Increased Efficiency and Performance through MPPT: MPPT is a technology where variables, such as solar irradiation, ambient temperature, etc., are taken into account to ensure that a system yields maximum performance. A microinverter would perform MPPT on a system consisting of just one inverter and one solar panel. Microinverter-based systems yield 5-25% increased power compared to systems using central inverters.
• Real-time performance reports for each panel and inverter: Web-based monitoring on a panel-by-panel basis is available for both the users and the installers. Analyzing the respective information can be used to further improve performance and ensures timely maintenance and repair.
• Ease of installation: Installing solar panels with microinverters is easier and faster and leads to lower installation costs compared to traditional inverters. Installers are no longer restricted by string design, marginal designs, co-planarity, and matched modules. Moreover, microinverters reduce wiring time and remove the need for DC switching points.
• Longer life: Microinverters usually come with a warranty of 10–25 years. The mean life of microinverters is more than the life of the traditional string inverters.
• Cost-effective: The cost savings use of micro-inverters is manifold. Microinverters individually are less expensive than a conventional inverter. When a conventional inverter fails, it is expensive to replace but in the case of microinverters, they are far less likely to fail because of the smaller amount of electricity they process when compared to a conventional inverter.
• Elimination of space and heat problems of string inverters: String inverters occupy more space, though not really big, and generate a lot of heat which has to be cooled by using fans
• Flexibility: One of the major benefits of micro-inverters is its flexibility and scalability. One can start with a minimal set of solar modules and add modules as needs and budgets grow without requiring the replacement of a large centralized inverter. Moreover, in 2018, single-phase microinverters in the microinverter industry held a prominent share of 68.1%, followed by a three-phase microinverter. The single-phase microinverter market at a global scale was evaluated at US$ 665.8 million in 2018 and is projected to witness astonishing CAGR of 27.39% during the forecast period accredited to surging investments and growing residential demand for solar microinverters.
To conclude, the installation of solar microinverters has been growing at a very accelerating pace due to the growing number of consumers preferring for safety and cost reduction in electricity consumption. It has been observed that the market size as well installation rates are reaching all-time highs at global scale and do not show any signs of slow down. Based on connectivity, the report segments the market into integrated and standalone; integrated connections occupied the maximum share in solar microinverters attributed to their simplicity and cost-effective connectivity mode in terms of installation. The system aims to pay for themselves by offsetting utility bills within 3-8 years. The segment registered the CAGR of 27.58% over the forecast period. Global Solar Microinverter market-derived at US$ 977.5 million revenues in 2018 and is expected to fetch US$ 5604.6 million by 2025 experiencing robust CAGR of 28.41% over the forecast period (2019-2025). Also, for better understanding of solar microinverter market globally, detailed analysis has been done for different regions along with their countries including North America (US), Europe (UK, France, Germany, Italy), Asia Pacific (China, India, Australia, and Japan), and rest of the world. The rest of world includes regions such as Latin America and Middle East. Based on the estimation, North America dominated the global solar microinverter water market, accounting for revenue share of 49% in 2018. On account of majority of consumers now preferring energy efficiency along with increasing research and development and surging investments coupled with numerous companies foraying into solar microinverter segment, the regional market has fostered significantly in last few years.
Numerous companies have earmarked their presence in the global solar microinverter market that continue to focus on business expansions, product expansions, surging investments, and collaborations, for instance, SMA Solar Technology AG, Altenergy Power System Inc, Northern Electric & Power Inc, Darfon Electronics Corp, Chilicon Power, Sparq Systems, Solar Edge Technologies, Fimer SPA, Enphase Energy and Green Rays Enersol Pvt Ltd to name a few. They continue to offer wide range of solar microinverters that cater to consumer needs and specifications in various domains that further resulted in escalating demand for respective solar inverters.
Global Solar Microinverter generated revenue of US$ 977.5 milllion in 2018. The sector is expected to witness CAGR growth of 28.4% during the forecast period 2019-2025, to reach a market size of US$ 5,604.6 million by 2025. North America dominated the market, owing to increased adoption of such technology in the commercial sector.