India Solar Inverter Market Overview
The India solar inverter market is expected to grow at a CAGR of over 21% during the period 2018-2024. The market is driven by the increasing demand for renewable energy, declining cost of solar PV systems and supportive government policies.
Rapid industrialization and urbanization, along with the growing need for uninterrupted power supply, are leading to the increased adoption of solar inverters in India. Solar inverters are devices that convert direct current (DC) into alternating current (AC), which can be used to run electrical equipment. These inverters are used in both small and large-scale solar photovoltaic (PV) systems.
The India solar PV market has been growing rapidly, with installed capacity reaching around 27 GW as of June 2018. The government’s target to install 175 GW of renewable energy by 2022 is expected to provide a further boost to the solar PV market, which would in turn drive the demand for solar inverters over the forecast period.
Some of the key players operating in the Indian solar inverter market include ABB Ltd., Delta Electronics India Pvt. Ltd., Huawei Technologies Co., Ltd., KACO new energy GmbH, SMA Solar Technology AG and Sungrow Power Supply Co., Ltd.
Solar inverters have undergone significant changes in recent years due to the declining cost of PV panels and the need for higher efficiency. String inverters are the most commonly used type of solar inverter, followed by central inverters.
India solar inverter market Segmentation
By Type of Technology
The solar inverter market in India is classified into two types based on technology – AC and DC.
AC Solar Inverters: AC solar inverters are the most used type of inverters in India. They are simple to operate and maintain, and have a long lifespan. AC inverters are available in a variety of sizes and capacities, making them suitable for use in both small and large-scale solar PV systems.
DC Solar Inverters: DC solar inverters are less common than AC inverters but are growing in popularity due to their higher efficiency levels. DC solar inverters also have a shorter lifespan than AC inverters, but require less maintenance. DC inverters are available in a variety of sizes and capacities, making them suitable for use in both small and large-scale solar PV systems.
By Type of Product (On Grid, Off Grid)
The global solar inverter market is classified into two types on the basis of product type. These are on grid solar inverters and off grid solar inverters. On grid solar inverters are further sub segmented into central inverters and string or distributed inverters. Off grid solar inverters are used in stand-alone photovoltaic (PV) systems and are not connected to the electricity grid. They are further sub segmented into DC to AC converter and DC to DC converter.
In India, the on grid solar inverter market is anticipated to grow at a CAGR of around 21% during the forecast period. The increasing demand for renewable energy sources, government policies and incentives, and declining cost of PV systems are some of the major factors driving the growth of on grid solar inverters market in India. The off grid solar inverter market in India is expected to grow at a CAGR of around 19% during the forecast period. The rising demand for stand-alone PV systems in remote locations, lack of access to electricity, and government initiatives are some of the key factors driving the growth of off-grid solar inverter market in India
By Application (Residential, Non-Residential)
The solar inverter market in India is segmented by application into residential and non-residential. The residential segment is further sub-segmented by grid-connected and off-grid.
The grid-connected solar inverters are used for feeding DC power generated by the solar PV panels into the grid. These inverters are also known as utility interactive or gridtie systems. On the other hand, off-grid solar inverters are used in stand-alone photovoltaic (PV) systems where there is no connection to the utility grid.
The residential solar inverter market is expected to grow at a rapid pace during the forecast period on account of the increasing awareness about the benefits of solar energy among consumers and government initiatives to promote the use of renewable energy sources. In addition, declining cost of solar PV modules and increasing availability of financing options are also fuelling the growth of this market segment.
The non-residential solar inverter market includes segments such as commercial, industrial, and institutional. Of these, commercial applications are expected to be the largest contributors to the overall market growth during the forecast period on account of factors such as growing demand for onsite power generation from businesses and favourable government policies encouraging rooftop Solar PV installations.
By Region (North America, Europe, Asia Pacific, and Rest of the World)
The global solar inverter market is divided into four major regions: North America, Europe, Asia Pacific, and the Rest of the World.
North America: The United States is the leading country in the North American solar inverter market with a share of xx%. The country has a well-developed solar industry with a large number of installed solar PV capacity. The US solar inverter market is expected to grow at a CAGR of xx% during the forecast period.
Europe: Germany is the largest solar inverter market in Europe with a share of xx%. The country has a strong focus on renewable energy and has been promoting the use of solar energy through various policies and incentives. The German solar inverter market is expected to grow at a CAGR of xx% during the forecast period.
Asia Pacific: China is the leading country in the Asia Pacific solar inverter market with a share of xx%. The country has ambitious plans for the development of its renewable energy sector and has been investing heavily in solar energy. The Chinese solar inverter market is expected to grow at a CAGR of xx% during the forecast period.
Trends in the India solar inverter market
The India solar inverter market is forecast to grow at a CAGR of around 20% during the period 2018-2024. The market is expected to be driven by the increasing focus on renewable energy, declining cost of solar PV systems and supportive government policies.
The residential segment is expected to continue to dominate the market, followed by the commercial and industrial segments. On the basis of technology, string inverters are expected to account for a major share of the market, followed by central inverters.
Major players in the Indian solar inverter market include ABB Ltd., Tata Power Solar Systems Ltd., Huawei Technologies Co. Ltd., Schneider Electric India Pvt. Ltd., and Delta Electronics (India) Pvt. Ltd.
