US Solar Inverter Market 2024–2033

Reports Description

US Solar Inverter Market was valued at USD 1,121.5 Million in 2024 and is expected to reach USD 3,018.2 Million by 2033, at a CAGR of 11.52% during the forecast period 2024 – 2033.

The World is moving towards green and sustainable energy solutions, the demand for solar power inverters is increasing across the various end use industries.  Solar Inverter is a device that converts the direct current (DC) from solar panels to alternating current, which is used residential and commercial applications.

Solar inverters are crucial in converting solar energy into usable electricity, making them an essential component of any solar power system. Solar inverter converts power from the sun into more useful energy and is often referred to as the brain of a solar system.

US Solar Inverter Market Growth Factors

Increasing Investment in the Renewable Energy

The increasing awareness about renewable energy and growing global energy crisis, ongoing recovery from the COVID-19 pandemic, as well as alignment across climate change policy ambition, energy security goals and industrial strategies are some of the factors increasing the investment in the renewable energy.

The US government is heavily investing in the renewable energy sources to cope with increasing electricity demand and reduce the carbon emissions. The stakeholders operating in the market are unlocking record-breaking levels of private investment in building the clean energy economy.

For instance, in the last two years the US clean energy industry received more than USD 500 billion in clean energy investment and over 160 new manufacturing facilities expansion have happened. These facilities are expected to provide over 100,000 new manufacturing jobs.

Furthermore, recently as part of the President Biden’s Investing in US America agenda, the US Department of Energy announced USD 71 million investment in solar energy supply chain.

Through this investment the US government is fostering the research, development, and demonstration projects to grow the network of domestic manufacturers across the US Thus, such growing investment in the renewable energy sector is driving the demand for continuous and advanced power supplying solutions, thereby driving the demand for solar inverter from renewable energy, grid modernization, and energy storage applications.

Supportive Government Policies

The US government providing the supportive policy landscape for stakeholders operating in the solar inverter industry through various forms such as federal grants loans, and tax incentives and financial incentives to implement the solar PV panels.

The US government has implemented various tax incentives schemes to foster the adoption of solar energy and related technologies. For instance, US government has implemented the Inflation Reduction Act in August 2022. Through this act the government allotted USD 369 billion for promotion of renewable energy sector.

Growing focus by the US government on reduction of carbon emissions and increasing awareness about solar energy is expected to drive the demand for the solar inverter during the forecast period. The US government has launched the federal solar investment tax credit facility, under this scheme the residential and commercial end users get financial assistance in a percentage of their solar installation costs from their federal taxes.

Furthermore, US government under their Department of Energy have crated the Solar Energy Technologies Office (SETO) to supports research, development, and demonstration of solar energy. Thus, above mentioned supportive policies are expected to drive the demand for the market growth of US solar inverter market during the forecast period.

US Solar Inverter Market Restraints

High Costs of Solar Inverters

The installation cost of the solar Inverters is very high as requires high-quality raw materials and skilled expertise for installation and maintenance activities. The prices of the solar inverters are increasing periodically due to the increasing cost of its components and machineries.

Solar inverters price variers as per their capacity to convert the electricity and some solar inverters are usually more expensive because they optimize each solar panel individually. The solar inverter is made up of various components such as solar panel, inverter, battery, charge controller and other processing chemicals.

The prices of these components are fluctuating periodically due to increasing inflation. Thus, such factors are increasing production cost of the solar inverter, thereby increasing the selling prices consequently reducing the adaption among price sensitive consumes.

Furthermore, for installation and maintenance of the solar inverter requires skilled labours and trained engineers. The remuneration of these engineers and skilled expertise is very high, which in turn increases the overall maintenance cost. Thus, high installation and maintenance costs the solar inverter is restraining the market growth.

US Solar Inverter Market Opportunities

Technological Advancements in Solar Inverter

The key players operating in the market are heavily investing in the innovations of the technologies and research development in the solar industry. The technological advancements and innovations to reduce the installation cost of the solar installations and solar inverters is expected to create lucrative opportunities for market during the forecast period.

Various technological advancements such as smart inverters, advanced durability in the solar inverter, integration of emerging technologies such artificial intelligence and advancements in the battery technologies and smart inverters are expected to create the lucrative opportunities for market during the forecast period.

The key players are heavily investing on the integration of AI-powered predictive algorithms can manage energy, while machine learning can optimize system performance. The advancements in the battery technologies such as development of the high-capacity lithium-ion batteries, and can also integrate with solid-state batteries is also increasing the efficiency and productivity of the solar inverter.

The innovation and advent of the smart inverter is expected to create lucrative opportunities for market during the forecast period. The smart inverters communicate with energy management systems and smart grids and can be remotely monitored and controlled.

They can also automatically adjust to optimize energy output and support grid stability. Furthermore, growing emphasis by the key players and other stakeholders on the reduction of installation costs for solar inverters through technological innovations is expected to create lucrative opportunities for market during the forecast period.

US Solar Inverter Market Segmentation Analysis

US Solar Inverter market is segmented by type, by system type, by application, by phase, by distribution channel and by region. By type, the US Solar inverter market is segmented into central inverter, micro-Inverter and string Inverter. Among all of these, string inverter segment dominated the market and is expected to keep its dominance during the forecast period owing to growing adoption of string inverter in the commercial and residential applications.

The string inverter is very reliable and cost-efficient type of solar inverter because it relates to a string of solar panels, which is called the solar array. There are many ways of connecting a string of solar panels. The less installation and maintenance cost of the string inverter is major driver of the market growth of this segment.

Micro-Inverter segment is expected to grow at fastest CAGR during the forecast period owing to its rapid adoption in many end use industries. The presence of many leading brands in this segment, high energy efficiency of the micro inverter, growing reliability of the micro inverter among the end users are some of the factors driving the market growth of this segment.

Microinverters individually receive a separate current from each individual panel. This means these inverters are much smaller than their string counterparts and have an increased efficiency.

By system type, market is segmented into on grid and off grid systems. Among all of these, on grid system dominated the market and is expected to keep its dominance during the forecast period owing to growing installations of the on-grid systems across the various end use industries.

On grid system are tied to local utility’s grid. The On-grid system is mainly used in the residential applications because solar system under produces varying energy needs. Off grid segment is expected to grow at fastest CAGR during the forecast period. The main benefits of grid connected PV systems with batteries include increased energy independence, reduced energy costs, and improved energy efficiency.

By application, the market is segmented into commercial, residential and utilities. Among all of these, utilities application segment dominated the market and is expected to keep its dominance during the forecast period owing to growing installation of solar panels and solar inverters in the various utilities such as industrial utilities and educational utilities. The commercial segment is expected to grow at substantial growth rates during the forecast period.

Report Scope

US Solar Inverter Market Regional Analysis

The US Solar Inverter market is mainly influenced by the various regional factors such as growing installation of solar panels in the residential and commercial construction infrastructures and growing supportive policies. The densely populated cities such as New York city, Log Angeles, Texas, Washington DC, California, Florida, Pennsylvania, Chicago, and Los Angeles are renovating their construction projects, thereby boosting the adaption of Solar Inverters.

US Solar Inverter Market Recent Developments

• In August 2022, The GoodWe Technologies Co., Ltd, a leading-edge PV inverter and energy storage systems manufacturer signed a 100 MW distribution contract with TradeCorp onsite. Through this partnership the company is aiming to strengthen the distribution channel.

• In August 2024, the GoodWe Technologies Co Ltd a global leader in solar inverters and smart energy solutions, launched its LVSMT- US inverter to meet the needs of small C&I installations.

List of the prominent players in the US Solar Inverter Market:

• GoodWe Technologies Co Ltd
• Delta Electronics Inc
• CyboEnergy Inc
• Yaskawa America Inc
• Danfoss AS
• Sun Power Corporation
• Solectria Renewables
• SMA Solar Technology AG
• SolarEdge Technologies Inc
• Power Electronics SL
• Chicago Digital Power Inc
• Others

The US Solar Inverter Market is segmented as follows:

By Type

• Central Inverter
• Micro Inverter
• String Inverter

By System Type

• On-Grid
• Off-Grid

By Phase

• Single-Phase
• Three-Phase

By Application

• Residential
• Commercial
• Utilities

By Distribution Channels

• Online
• Offline

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America