Global Solar Inverter and Battery Market - 2023-2030

Global Solar Inverter and Battery Market - 2023-2030

Global solar inverter and battery market reached US$ 10.1 billion in 2022 and is expected to reach US$ 22.9 billion by 2030, growing with a CAGR of 10.8% during the forecast period 2023-2030.

Solar inverters are an essential component of solar energy systems as they convert direct current (DC) generated by solar panels into alternating current (AC) for use in electrical grids or on-site consumption. The market for solar inverters is driven by the increasing deployment of solar photovoltaic (PV) systems across residential, commercial and utility-scale sectors. Technological advancements, such as the integration of smart grid features and advanced monitoring capabilities, are further fueling market growth.

Europe has been a significant contributor to the growth of the global solar inverter and battery market. SMA, a German manufacturer, has been a leading player in the solar inverter market. The company has focused on developing high-quality inverters with advanced features such as grid management capabilities, system monitoring and integration with energy management systems. SMA has been at the forefront of technological advancements in the European market.

For example, SolarEdge, an Israeli company with a strong presence in Europe, has played a significant role in advancing solar inverter technology. The company's DC optimized inverters and power optimizers have gained popularity due to their ability to maximize energy production and provide module-level monitoring. SolarEdge has established partnerships with European installers and has been actively expanding its market share in the region. Therefore, Europe accounts for nearly 1/3th of the global market share.

Market Dynamics
Growing Installation of Solar PVs
Solar inverters play a crucial role in maintaining grid stability and ensuring power quality. They provide grid support functionalities such as reactive power control, voltage regulation and frequency response. With the increasing penetration of solar PV systems in the energy mix, solar inverters contribute to the stability and reliability of the electrical grid.

The growth of solar PV installations has led to an increased focus on energy storage systems. Energy storage, in conjunction with solar inverters, enables the capture and utilization of excess solar energy produced during peak generation periods. Battery storage systems store the excess energy for later use when solar generation is low, such as during nighttime or periods of low sunlight. This enhances self-consumption, improves energy resilience and allows for time shifting of solar energy to align with peak demand periods.

Rise in Battery Storage Systems
Battery storage systems provide grid resilience and backup power during grid outages or disruptions. By storing energy, solar PV systems combined with battery storage can continue to provide electricity when the grid is unavailable. This capability is essential for critical infrastructure, homes and businesses that require uninterrupted power supply.

Solar inverters facilitate the seamless transition between grid-connected solar power and battery backup, ensuring a reliable and continuous energy supply. The need for grid resilience and backup power solutions has driven the demand for solar inverters and battery storage systems, contributing to the market growth.

Higher Installation Cost
Higher installation cost can pose challenges in securing financing and accessing capital for solar PV projects. For residential customers, affordability and access to favorable financing options play a crucial role in decision-making. Similarly, commercial and industrial customers may face difficulties in obtaining financing for large-scale solar projects with battery storage due to the perceived higher risks associated with the initial investment. Limited access to capital can restrict the growth of the solar inverter and battery market.

In some cases, higher installation costs can be influenced by regulatory factors and policy frameworks. Certain regulations, permitting processes and local building codes may impose additional requirements or costs, impacting the overall installation expenses of solar PV systems with battery storage. In regions where policy support for renewable energy and energy storage is lacking or inconsistent, higher installation costs can deter market growth and hinder the widespread adoption of solar inverters and batteries.

COVID-19 Impact Analysis
Disrupted Demand and Market Uncertainty: The pandemic introduced uncertainties and weakened demand in the global solar inverter and battery market. Economic downturns, reduced consumer and investor confidence and the financial strains faced by businesses and households impacted the adoption of solar PV systems with battery storage. Uncertainties surrounding government policies, incentives and future energy markets also affected the decision-making process for solar investments, leading to a cautious approach among customers.

Policy Support and Stimulus Packages: Governments worldwide implemented various stimulus packages and policy measures to support economic recovery, including the promotion of renewable energy and energy storage. Many countries introduced or expanded renewable energy targets, subsidies and incentives to accelerate the transition to clean energy. These policy interventions aimed to revitalize the solar inverter and battery market by providing financial support, reducing barriers and stimulating demand.

Segment Analysis
The global solar inverter and battery market is segmented based on connection, inverter, battery, end-user and region.

The Growing Demand for Off-Grid and Hybrid Systems in the Global Solar Inverter and Battery Market

While on-grid connection types dominate the global solar inverter and battery market, it's important to note that the demand for off-grid and hybrid systems is also growing, especially in remote areas or regions with unreliable grid infrastructure. Off-grid systems with battery storage provide energy independence and can operate autonomously, making them suitable for locations without access to a stable grid. Hybrid systems combine the benefits of both on-grid and off-grid solutions, allowing solar PV systems to be connected to the grid while also incorporating battery storage for backup power and load management. Therefore, off-grid segment is the second largest segment.

Geographical Analysis
Government Support and Incentives Drives the Market Growth
Governments in the Asia-Pacific have implemented supportive policies and financial incentives to promote solar energy deployment. Feed-in tariffs, net metering programs, tax credits and subsidies have encouraged the installation of solar PV systems with battery storage. These measures have created a favorable investment environment and stimulated market growth.

Therefore, the combination of supportive government policies, declining costs, technological advancements and the region's large population and energy demand has positioned Asia-Pacific as the dominant market for solar inverters and batteries. The region is expected to continue leading the global solar inverter and battery market in the coming years.

Competitive Landscape
The major global players include Huawei Technologies Co., Ltd., SMA Solar Technology AG, Sungrow Power Supply Co., Ltd., ABB Ltd, Schneider Electric SE, Enphase Energy, Inc., Fronius International GmbH, LG Electronics Inc., Tesla, Inc. and SolarEdge Technologies Inc.

Why Purchase the Report?
• To visualize the global solar inverter and battery market segmentation based on connection, inverter, battery, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of solar inverter and battery market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.
The global solar inverter and battery market report would provide approximately 69 tables, 66 figures and 208 Pages.

Application 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies