Solar microinverter market could break $1 billion by 2018

The market for global photovoltaic (PV) solar microinverters and power optimizers is forecast to more than triple in the coming years, to more than $1 billion in 2018, with established and new regions increase their adoption, according to IHS Technology.

The United States is the largest region for microinverter shipments, and residential systems are the largest market for microinverters in U.S.

Microinverters are devices that convert direct current (DC) electricity from a single solar module into alternating current (AC) used by all electrical devices.

Although they are more costly, microinverters can in some cases harvest up to 25% more electricity than conventional string or central inverter devices, which convert power from multiple solar panels.

Worldwide market revenue for PV solar microinverters and power optimizers—collectively known as module-level power electronics (MLPE)—will rise at a compound annual growth rate of 27% to $1.1 billion in 2018, up from $329 million in 2013, according to IHS data.

"Demand for MLPE has been driven by key markets such as the United States, the United Kingdom and Australia,” said Cormac Gilligan, senior analyst for solar inverters at IHS. “The market has grown to more than $300 million in size, despite continued price pressure due to new entrants into the business and decreasing PV system prices.

He said demand for microinverters and power optimizers is expected to be driven by continued acceptance in mature European PV markets, such as Germany and France. Some of the major Asian markets, such as Japan and China, will also generate significant opportunity.

With microinverter suppliers expected to soon gain Japan Electrical Safety & Environment Technology Laboratories (JET) certification in Japan, microinverters will likely be shipping soon into this huge residential market.

In the next few years more microinverters are expected to go into commercial installations in the United States, which will keep the U.S. as the largest market for microinverters through 2018.