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A recent study by Global Market Insights Inc. suggests that the residential solar PV inverter market size is likely to reach $6 billion by 2028 end.
Rising electricity demand and increasing GHG levels worldwide are putting different power systems under strain. This has produced a significant demand for renewable sources of energy, a prominent one being solar energy. As per reliable estimates, 55% of the global renewable energy is now solar, with industry experts anticipating that the majority of the world could run wholly on solar power by 2050.
The growing fad of solar energy has prompted diverse nations to deploy solar panels and inverters across different residential buildings. Speaking of which, the US announced installing 4 million units by 2023 end, while China aims at becoming the first nation to collect space solar power by 2050. Imperatively, the average carbon footprint associated with the production of solar PV panels and inverters is more or less 85 tons of CO2 equivalent per gW.
These facts point to the need for having a solar PV inverter in residential spaces to save on cost and energy. Having said that, research and development in this market are scaling and leading to groundbreaking innovations, bringing onboard leading players that have a lot to contribute to this industry.
To illustrate, Tesla, a leading automaker, announced debuting in the solar PV inverter industry, with its new addition to Powerwall- its own solar power inverter. Company officials claim that Tesla Solar Inverter encloses the Tesla home solar system, for the purpose of home energy consumption.
Tesla’s breakthrough in the residential solar PV inverter industry space is just one of the many innovations that the industry is witnessing in the modern day. Given below is the list of contributions made in the field that would open new growth avenues for the market growth:
1. GE’s entry into the United States residential solar inverter business
One of the prominent household appliances brands, General Electric (GE), in December 2021, announced foraying into the US residential solar inverter market with a technology that has already been gaining ground in Brazil and Australia.
Through this launch, the company is moving on with its goal of being a major contributor toward the country’s renewable energy transition, while offering homeowners a more confident choice for choosing solar energy for their energy requirements.
2. Introduction to residential inverter and batteries by SolarEdge
In October 2021, Israel-based SolarEdge Technologies declared the North American launch of two novel products: Energy Hub Inverter and Energy Bank battery for residential purposes. The Energy Hub inverter has a range between 7.6kW to 11.4kW PV power with 200% DC oversizing to deliver a relatively higher energy yield for homes.
In fact, officials stated that the backup power inverters simplify installations by decreasing the need for main panel upgrades.
3. SolarEdge’s partnership with Sunrun to expand Energy Hub Inverter offerings worldwide
The smart energy technology leader, SolarEdge, in 2021, announced entering into a strategic supply pact with the U.S.’s leading provider of residential solar services-Sunrun. Under this alliance, the latter is speculated to offer SolarEdge’s next-gen PV inverter-Energy Hub- for its residential customers.
With such developments at peak, different countries are now emphasizing the deployment of solar energy services, be it panels, inverters, or other solutions, across different spheres, mainly the residential buildings. One of these countries is Australia.
Could Australia be the next hotspot for burgeoning residential solar PV inverter sales?
Speaking on the lines of solar energy consumption and prominence in Australia, consider the given pointers:
- Australian homes produce and deploy solar panels at a relatively higher rate than any other country worldwide, with a whopping 15% of roofs deploying these panels.
- During the past 15 years, the population in South Australia has installed more large-scale renewable capacity than any other state.
- Close to 25% of homes in South Australia have solar panels.
In an attempt to enhance the rate at which solar energy is taking over the country, different central and state governments are undertaking norms and policies to adopt next-gen solar energy services. For instance, the Australian Energy Market Commission announced introducing compulsory novel standards for new and upgraded solar power systems in New South Wales, Queensland, Victoria, Tasmania, and others. It would be pivotal to note that the South Australian government has already implemented some solar inverter standards, while the other states would follow.
Meanwhile, the central government is also firm on introducing clean energy initiatives in the country, which is speculated to support the market expansion to a larger scale. Recently, Australia’s Clean Energy Initiative Solar Flagships Program has committed $1.5 billion to support the demonstration and construction of 4 large-scale power plants in the country, making use of PV and solar thermal technologies.
Such norms and initiatives that promote the use of solar energy across different residential spaces are certain to have a positive impact on Australia’s residential solar PV inverters market over 2022-2028.
With the popularity of solar energy incredibly expanding worldwide, its need across different commercial, residential, and industrial dimensions is anticipated to surge dynamically through the coming years, with the residential sector accounting for a massive share. This has propelled the demand for solar PV inverters in these areas, offering a positive growth trajectory to the market.