Solar Hybrid Inverter Market Size (2024 – 2030)

The Global Solar Hybrid Inverter Market was valued at USD 8.1 billion and is projected to reach a market size of USD 15.29 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 9.5%.  

A solar hybrid inverter is a device that converts solar energy into AC power. Solar hybrid inverters store excess energy in batteries for later use. Solar hybrid inverters are used for backup power during grid outages. The Solar Hybrid Inverter Market is expected to grow significantly in the coming years due to the increasing adoption of solar energy systems, especially in residential and commercial sectors. The major well-established key players in the Solar Hybrid Inverter Market are SMA Solar Technology AG, SolarEdge Technologies Inc., Huawei Technologies Co., Ltd., GoodWe Power Supply Technology Co., Ltd., and Fronius International GmbH.

Key Market Insights:

Solar hybrid inverters are inverters that manage both solar power and battery storage.  This enables efficient utilization of solar energy. Renewable energy adoption, energy security concerns, government incentives, technological advancements, and increasing grid instability propel the Solar Hybrid Inverter Market. The restraints to the Solar Hybrid Inverter Market include the high initial investment costs, technical challenges, limited energy storage capacity, regulatory uncertainty, grid interconnection issues, permitting delays, and limited awareness. Ongoing advancements in technology result in the development of more enhanced and efficient Solar Hybrid Inverters. Asia-Pacific occupies the highest share of the Solar Hybrid Inverter Market. North America is the fastest-growing segment during the forecast period.

Solar Hybrid Inverter Market Drivers:

Increasing Adoption of Renewable Energy drives the demand for Solar Hybrid Inverter Market

The increasing adoption of renewable energy is a significant driver of the solar hybrid inverter market.  Consumers prefer cleaner and more sustainable energy sources to fight climate change and reduce the usage of fossil fuels. Solar energy provides a prominent solution to this. Solar energy is environmentally friendly and low in cost. Governments are increasingly investing in solar energy systems.  These systems meet the electricity needs while reducing carbon emissions and energy costs. Solar hybrid inverters maximize the efficiency and reliability of solar energy systems. This is by integrating solar power with battery storage. Solar hybrid inverters enable energy self-consumption and provide backup power during grid outages. The growing focus on renewable energy adoption also drives the demand for solar hybrid inverters in residential, commercial, and industrial sectors.

Energy Security Concerns are propelling the Solar Hybrid Inverter Market

Energy security concerns are a significant driver of solar hybrid inverters. The need for a reliable and resilient power supply is resulting adoption of solar hybrid inverters. Regions prone to grid outages, natural disasters, or unreliable electricity infrastructure are increasingly adopting solar hybrid inverters. Solar hybrid inverters offer energy security. Solar hybrid inverters provide backup power during grid failures. Solar hybrid inverters ensure uninterrupted electricity supply for critical loads such as medical equipment, communication systems, and essential services. Solar hybrid systems reduce dependence on centralized power grids. Solar hybrid inverters are adopted particularly in regions with vulnerable or unstable power infrastructure. The demand for solar hybrid inverters equipped with energy storage capabilities is expected to grow in the coming years.

Solar Hybrid Inverter Market Restraints and Challenges

The major challenge faced by the Solar Hybrid Inverter Market is the high upfront costs associated with solar hybrid inverters. The inverters, solar panels, and energy storage systems can be relatively high in price. This initial investment can be challenging for some consumers. Another challenge in the Solar Hybrid Inverter Market is technical complexities. Solar hybrid systems often involve the integration of multiple components like solar panels, inverters, batteries, and energy management systems.  Managing technical complexities can create challenges for installers. Ensuring compatibility and optimizing system performance can also be difficult. The other restraints to the Solar Hybrid Inverter Market include limited energy storage capacity, regulatory uncertainty, grid interconnection issues, permitting delays, and limited awareness.

Solar Hybrid Inverter Market Opportunities:

The Solar Hybrid Inverter Market has various opportunities in the market. With the integration of smart home systems, the Solar Hybrid Inverter Market is anticipated to witness significant growth in the coming years. Technological advancements and ongoing research present significant opportunities. These latest advancements improve the efficiency, reliability, and performance of solar hybrid inverters. This enhances competitiveness in the market and drives the adoption of solar hybrid inverters. Other Opportunities in the Solar Hybrid Inverter Market include expansion in emerging markets, innovative financing models, rural electrification initiatives, collaboration with utility companies, and adoption of microgrid solutions.

SOLAR HYBRID INVERTER MARKET REPORT COVERAGE:

Solar Hybrid Inverter Market Segmentation: By Type

• • Single-phase Hybrid Inverters

  • Three-phase Hybrid Inverters

In 2023, based on market segmentation by type, Single-phase hybrid inverters occupy the highest share of the Solar Hybrid Inverter Market. This is mainly due to their compatibility with single-phase electrical systems.  Single-phase hybrid inverters are often used in residential and small commercial applications.  In residential and small commercial applications, the power demand is relatively lower compared to industrial applications. Thus, Single-phase hybrid inverters are popular among homeowners and small businesses.

However, Three-phase hybrid inverters is the fastest-growing segment during the forecast period and is projected to grow at a CAGR of 12%.  This is due to the increasing adoption of solar energy in commercial and industrial sectors. Three-phase hybrid inverters are often used in commercial and industrial applications where the power demand is higher. These inverters are capable of handling larger loads.

Solar Hybrid Inverter Market Segmentation: By End-User

• • Residential

  • Commercial

  • Industrial

In 2023, based on market segmentation by end-users, the residential segment occupies the highest share of the Solar Hybrid Inverter Market. This is mainly due to the growing adoption of solar energy systems to reduce their electricity bills. Solar Hybrid Inverters also help in gaining energy independence and contribute to environmental sustainability.

However, the commercial is the fastest-growing segment during the forecast period. This is mainly due to the economic and environmental benefits of solar energy systems.  Solar hybrid inverters help in cost savings and carbon footprint reduction. Solar hybrid inverters optimize energy usage, manage peak demand, and provide backup power.

Solar Hybrid Inverter Market Segmentation: By Power Rating

• • Below 5 kW

  • 5 kW - 20 kW

  • Above 20 kW

In 2023, based on market segmentation by the Power Rating, the below 5 kW segment occupies the highest share of the Solar Hybrid Inverter Market. This below 5 kW segment is often used in residential and small-scale commercial applications. They opt for below 5 kW Solar Hybrid inverters to meet their electricity needs while also leveraging the benefits of battery storage and grid connectivity. This also reduces operating costs.

However, 5 kW - 20 kW is the fastest-growing segment during the forecast period. This growth is driven by increasing adoption in both residential and commercial sectors.5 kW - 20 kW Solar Hybrid Inverters are more affordable and efficient. Larger systems within this power range maximize energy savings and reduce reliance on the grid.

Solar Hybrid Inverter Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

In 2023, based on market segmentation by region, Asia-Pacific occupies the highest share of the Solar Hybrid Inverter Market. This growth is due to rapid urbanization, increasing electricity demand, supportive government policies promoting renewable energy adoption, and declining costs of solar PV systems. Countries like China, India, Japan, and Australia, have significant market share due to significant investments in solar energy infrastructure, both in residential and commercial sectors.

However, North America is the fastest-growing segment during the forecast period. This is mainly due to the favorable regulatory environment, tax incentives, and high renewable energy installations. The growth is driven by the increasing awareness of climate change and the desire to transition toward cleaner energy sources. Nations like the U.S. and Canada have higher growth due to increasing residential solar installations. Hybrid inverters play a crucial role in maximizing energy utilization and providing backup power.

COVID-19 Impact Analysis on the Global Solar Hybrid Inverter Market:

The COVID-19 pandemic had a significant impact on the Solar Hybrid Inverter Market. During the pandemic, there were lockdowns, travel restrictions, and safety rules. This led to disruptions in the global supply chain and affected the production and distribution of solar hybrid inverters. There was a decline in demand for solar hybrid inverters, particularly in the residential and commercial sectors. However, the pandemic prompted a shift in consumer preferences toward energy resilience and reliability. The pandemic accelerated the adoption of solar hybrid inverters with energy storage capabilities. They offer backup power during grid outages and enhance energy self-sufficiency. Thus, the pandemic accelerated certain trends in the Solar Hybrid Inverter Market.

Latest Trends/ Developments:

One of the developments, in the Solar Hybrid Inverter Market is the rise in the integration of energy storage systems, particularly lithium-ion batteries, with solar hybrid inverters. This manages solar energy by storing excess energy generated during the day to use when sunlight is not available. Ongoing advancements in battery technology decrease costs. Advancements in power electronics like silicon carbide (SiC) and gallium nitride (GaN) semiconductors are other significant developments. This enables higher efficiency and power density. Other trends in the Solar Hybrid Inverter Market include Microgrid Deployment, Digitalization and Smart Grid Integration, Modularity and Scalability, Grid-forming Capability, and Focus on Energy Efficiency and Performance.

Key Players:

1. SMA Solar Technology AG

2. Schneider Electric

3. Huawei Technologies Co., Ltd.

4. Fronius International GmbH

5. GoodWe Power Supply Technology Co., Ltd.

6. Victron Energy B.V.

7. Sungrow Power Supply Co., Ltd.

8. ABB Ltd.

9. Delta Electronics, Inc.

10. SolarEdge Technologies Inc.

Market News:

• In February 2024, Redington Limited, a prominent IT technology provider, revealed its collaboration with Enertech, a reputable solar inverter manufacturing company, aimed at meeting the increasing demand for solar hybrid inverters in India. Leveraging Enertech's proficiency in solar solutions manufacturing and Redington's extensive distribution network across the country, the partnership seeks to optimize sales and post-sales service of solar hybrid inverters.

• In March 2023, Fronius unveiled its latest GEN24 Plus single-phase hybrid inverter, boasting high efficiency, flexibility, and backup power solutions tailored specifically to single-phase markets.

• In November 2023, Solis, a renowned figure in solar inverters, and Sungrow, a prominent provider of energy storage systems, forged a strategic cooperation agreement to collaboratively pioneer integrated solutions for solar hybrid inverters and energy storage systems. This partnership endeavors to elevate product innovation, marketing initiatives, and technical support, thereby offering customers enhanced reliability and cost-effective solutions for renewable energy generation and storage.