US Solar Inverter

US Solar Inverter

A solar inverter, also known as a photovoltaic (PV) inverter, is an important part of a solar energy system. Its main function is to convert the variable direct current (DC) output of photovoltaic panels to grid-frequency alternating current (AC), which can be fed into the commercial power grid or used in local off-grid power networks. This change allows the use of traditional AC-powered devices. Solar inverters are designed to absorb the fluctuating DC output of your panels and convert that power into 120 or 240-volt AC output. These replace the DC power collected by solar panels.

The US Solar Inverter Market is expected to grow at a strong CAGR of 11.8% during the forecast period owing to the rising sales of solar panels and increasing investment in the renewable sector. The country acquired the second most share in the Global Solar Inverter market in the world and is one of the leading countries in the Solar Inverter industry in both revenues and research funding. It is mainly owing to supportive government policies, investment, and financial grants for the development of Solar Inverter facilities in the country that are fueling the market size. The USA has introduced new policies to fully monetize manufacturing tax credits in the United States which could bring all the country’s segments of solar PV manufacturing to cost parity with the lowest-cost manufacturers. In the United States, expansion already planned includes the manufacturing of roughly 9 GW of integrated crystalline silicon (c-Si) modules and 6 GW of thin-film panels.

The majority of states in the United States of America are heavily investing in renewable energy to meet their renewable energy targets and the solar energy market is one of the prominent sources of energy which has seen a massive boom in the last decade. For instance, In the USA, one of the leading nations for solar power, solar has experienced an average annual growth rate of 24% in the last decade alone. Thanks to strong federal policies like the Solar Investment Tax Credit, rapidly declining costs, and increasing demand across the private and public sectors for clean electricity, more than 155 gigawatts of solar capacity are installed nationwide, enough to power 27 million homes.

• Based on Product Type, the US Solar Inverter market is divided into central, string, and micro inverter segments. The Micro-Inverter segment is expected to showcase significant growth in the US Solar Inverter market during the forecast period due to rising sales of microinverters in the commercial and industrial segment. A micro inverter is an inverter that performs the same functions as a string inverter, but they are installed underneath the solar panels. The main driver for their growth is due to the functionality of improved solar panel monitoring in microinverters.
• Based on End-User, the US Solar Inverter market is divided into Residential, Commercial & Industrial, and Utility-scale segments. The Utility-scale segment acquired a majority share in the US Solar Inverter market and is expected to showcase a substantial growth rate during the forecast period. Utility-scale PV remains the most competitive source of PV generation globally; however, building large-scale installations is becoming increasingly challenging in many regions of the world due to the lack of suitable sites. Moreover, Solar PV is the main choice for the private sector if they want to invest in renewable energy. Companies investing in distributed (including rooftop) solar PV installations on their commercial buildings and premises are responsible for around 30% of the total installed PV capacity, moreover, Companies are entering into corporate power purchase agreements with solar PV plant operators which would drive the market for US Solar Inverter during the forecast period.
• Based on Phase, the US Solar Inverter market is divided into Single-Phase and Three-Phase segments. The Three-Phase segment is expected to showcase significant growth in the US Solar Inverter market during the forecast period due to increasing investments in utility-scale plants which usually deploy three-phase inverters. The main advantage that a three-phase inverter has over a single-phase is that it can transmit more power. A poly-phase system itself will produce power at constant rates within a load. The efficiency is also higher than in machinery that might be operated through a single phase.
• Based on System Type, the US Solar Inverter market is divided into On-Grid and Off-Grid segments. The On-Grid segment captured a significant share in the US Solar Inverter market during the forecast period on account of rising investments by private corporations in solar panels which are usually grid-connected. On-grid systems connect to the electric grid and supplement the power you receive from your utility company. In contrast, off-grid systems are entirely independent and rely on battery storage.
• For a better understanding of the market adoption of the US Solar Inverter industry, the market is analyzed based on its regional presence in regions such as the Northeast, Southwest, West, Southeast, and Midwest. Northeast registered the highest market share in the US Solar Inverter market and is expected to witness an influential CAGR in the forecasted period. This is mainly owing to many Solar Photovoltaic (PV) Cell projects taking place in the area and states such as New York City, Philadelphia, and Boston having significant investments in the solar inverter industry. Moreover, favorable government policies, regulations, and investments in achieving renewable energy targets set by various states are driving the market. The Northeast is also one of the wealthiest parts of the United States in terms of per capita income and average household disposable income. The Massachusetts solar energy market is shaped by net metering and a renewable portfolio standard with a solar goal, along with an accompanying SREC market. The Solar Massachusetts Renewable Target (SMART) program was established in 2018 and has driven significant solar deployment in the state, acting as a template for other states to follow.
• Some of the major players operating in the market include Siemens, Schneider Electric, Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC), Power Electronics S.L., SMA Solar Technology AG , Yaskawa Solectria Solar, Fimer Group, Chilicon Power, Huawei Technologies Co., Ltd. And Sungrow.