US Solar Inverter Market to Grow at a CAGR of 12.8% to reach US$ 2,773.99 million from 2022 to 2030

The US solar inverter market size is expected to grow from US$ 825.86 million in 2022 and is expected to reach US$ 2,773.99 million by 2030; it is estimated to record a CAGR of 12.8% from 2022 to 2030.

Analyst Perspective:

The increased push toward using green power to achieve sustainability and energy security is the primary factor driving the deployment of US solar inverter market players to meet the rising demand and replace fossil-fuel-based power generating sources. The growth is majorly attributable to increasing government initiatives and incentives, technological advancements, constantly reducing costs, and rural electrification. Through constant technological advancements, solar PV inverter manufacturers have successfully developed advanced inverters with higher efficiency, better reliability, and user-friendly features. Micro inverters and power optimizers are gaining popularity through their ability to improve the performance of solar panels.

Market Overview:

Solar PV inverters track voltage, establish grid communication, and shut down operations during emergency conditions apart from converting direct current (DC) into alternating current (AC) via solar panels. US Solar inverter market players inverter are commonly used in residential and utility applications and are increasingly used in commercial and industrial projects globally. Solar photovoltaic (PV) inverters aid in maximizing energy production, ensuring safe system operations, improving grid capabilities, and tracking power output. Critical factors to be considered while adopting US solar inverter market are roof orientation, shading, roof inclination, tilting panels, and summer and winter production difference that result in the required output.

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US Solar Inverter Market: Strategic Insights

Market Size Value in	US$ 825.86 million in 2022
Market Size Value by	US$ 2,773.99 million by 2030
Growth rate	CAGR of 12.8% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Market Driver:

Growing Utility and Residential Solar Installations

Residential solar solutions can provide free, uninterrupted electricity for years while contributing to a greener environment. Residential solar rooftop systems are easy to install and require minimal maintenance. The electricity produced in excess can be sold to the grid through a net-metering facility, which helps reduce electricity bills. With depleting fossil fuel reserves, accelerated environmental degradation, and pressure on the power generation infrastructure, several governments have taken various steps in the form of subsidies to accelerate the adoption of solar energy by providing residential solar solutions.

Various vendors have shown growth in the shipment of US solar inverter market growth related products and services in the country. For instance, in January 2021, Sungrow Power Supply Co Ltd, a leading US solar inverter market player, announced that it had crossed 10 gigawatts (GW) of cumulative inverter shipments in the Americas. The shipment includes various countries in America, such as Brazil, Chile, Argentina, Mexico, and the US. Additionally, in 2020, Sungrow deployed 5 GW solar PV inverters in North America alone. Sungrow Power Supply Co Ltd's success in the Americas is a testament to the growing demand for solar power in the region as more and more people and businesses switch to solar inverters.

Segmental Analysis:

Based on product type, the US solar inverter market is segmented into string, micro, and central. The central segment held the largest share of the market in 2022, and the central US solar inverter market product segment is anticipated to register the highest CAGR in the market during the forecast period. Central inverters convert the direct current (DC) collected from an array of solar modules into alternating current (AC) for connection to the grid. Contrary to string inverters, which are often installed on a wall or other vertical structure, central inverters are typically floor or ground mounted. Central inverters have power outputs ranging from 50 kW (kilowatt) to more than 1 MW (megawatt) and are used for both indoor and outdoor applications. The main advantages of central inverters include credibility due to their high market presence, lower costs, and capability to generate higher output voltages, as well as reliability as these are placed in protective environments. These factors influence the use of central US solar inverter market player, thereby offering lucrative opportunities to the players in the US solar inverter market growth. For instance, SUNGROW announced the launch of its new central inverter with a power of 8.8 MW for solar energy storage in 2022.

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Country Analysis:

Utility-scale solar projects in the US are getting bigger and growing in number. In April 2020, BayWa r.e., a globally operating developer of renewables, secured a tax equity investment and construction term financing for its Fern Solar project with 134 MW installed capacity in Edgecombe County, North Carolina, with RBC Capital Markets syndicating the tax equity investment. The project will provide solar power to six US-based brands—Bloomberg, Cox Enterprises, Gap Inc, Salesforce, Workday, and Starbucks. Fern Solar Project is likely to provide solar power to the first five brands through a market-first, multiparty virtual PPA (VPPA) with the Corporate Renewable Energy Aggregation Group. Further, the US invested in 20.2 GW of solar PV capacity projects in 2022, which mounted the total capacity of the country to 142.3 GW. This solar capacity is enough for generating electricity for 25 million American homes. Thus, the rising number of solar power projects is boosting the US solar inverter market growth in the country.

Key Player Analysis:

Some of the key US solar inverter market players are GoodWe Technologies Co Ltd, Delta Electronics Inc, CyboEnergy Inc, Yaskawa America Inc, Danfoss AS, SMA Solar Technology AG, SolarEdge Technologies Inc, Power Electronics SL, Ginlong Technologies Co Ltd, Chicago Digital Power Inc, Sungrow Power Supply Co Ltd, and Caterpillar Inc.

Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies operating in the US solar inverter market. A few recent key market developments are listed below:

• In 2023, Ginlong Technologies Co Ltd, the largest manufacturer of PV string inverters, partnered with Sollega to create the UL 3741 PV System across North America. A safe and dependable combination system shortens installation times and costs. The inverter has ten independent MPPTs with wide full-power operating ranges, allowing it to perform effectively with both 600Vdc and 1000Vdc PV arrays.
• In 2022, Solaredge Technologies Inc and grid operator Rocky Mountain Power announced that SolarEdge Home Battery was qualified to join Rocky Mountain Power's award-winning Wattsmart Battery program.
• In 2022, SMA announced its intentions to double the production capacity in Germany from 21 GW to 40 GW by 2024. This will allow the company to expand ts Germany-based operations and make it even stronger.
• In 2021, Sungrow Power Supply Co Ltd, an inverter solution supplier for renewables, released the SG350HX string inverter at Intersolar Europe. This release showcased the company's technological progress and introduced a new era of string inverters exceeding 300 kW.