USA Micro Inverter Market Outlook to 2028

USA Micro Inverter Market Overview

The USA Micro Inverter Market was valued at USD 1 billion in 2023, driven by increased adoption of renewable energy, advancements in micro-inverter technology, and rising demand for more efficient and reliable solar power systems.

The key players in the USA micro-inverter market include Enphase Energy, Sun Power Corporation, Solar Edge Technologies, ABB Ltd, and SMA Solar Technology AG. These key players have a substantial impact on the market by driving technological advancements and setting industry standards.

In 2023, Solar Edge Technologies announced a partnership with Tesla to integrate its microinverter technology into Tesla’s solar roof systems. This collaboration is expected to enhance the efficiency and performance of Tesla’s solar solutions, potentially increasing Solar Edge’s market share.

The Western region, particularly California, dominated the market in 2023. The state’s strong solar policies and high solar penetration rates drive this dominance.

USA Micro Inverter Market Segmentation

The USA micro-inverter market is segmented into product type, application, and region.

By Product Type: The USA micro inverter market is segmented by product type into single-phase micro-inverters and three-phase micro-inverters. In 2023, single-phase micro inverters held a dominant market share due to their widespread use in residential solar installations.

By Application: The market is segmented by application into residential, commercial, and industrial sectors. In 2023, the residential segment dominated the market due to the increasing adoption of rooftop solar systems by homeowners, driven by rising electricity costs and environmental concerns, which have fueled the demand for micro inverters.

By Region: The market is segmented by region into North, South, East, and West USA. The market in the Western region in 2023, especially California, Arizona, and Nevada, was dominant due to the favourable solar energy climates in the area.

USA Micro Inverter Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Enphase Energy

2006

Fremont, California

Sun Power Corporation

1985

San Jose, California

Solar Edge Technologies

2006

Herzliya, Israel

ABB Ltd

1988

Zurich, Switzerland

SMA Solar Technology

1981

Niestetal, Germany

Enphase Energy: Enphase Energy launched its IQ8 micro inverters in 2023, which can operate without a grid connection, providing continuous power during outages. This innovation addresses the increasing demand for reliable and resilient energy solutions. Enphase reported a 20% revenue increase in Q1 2023, highlighting the market’s positive reception to the new product.

ABB Ltd: ABB Ltd introduced a new line of smart micro inverters in 2024, featuring advanced monitoring and diagnostic capabilities. These innovations improve energy management and system reliability, catering to the growing demand for smart grid solutions.

USA Micro Inverter Market Analysis

USA Micro Inverter Market Growth Drivers:

Increased Adoption of Solar Energy Systems: The USA has witnessed a growth surge in the adoption of solar energy systems, with over 5,000 MW of new solar capacity added in 2023 alone. This growth is driven by both residential and commercial sectors seeking to reduce energy costs and carbon footprints. The micro-inverter market benefits directly from this trend, as micro-inverters are integral to optimizing solar power systems.

Energy Storage Integration: In 2023, the USA saw the installation of 1,500 MW of energy storage systems, with projections for 2024 indicating an increase to 2,000 MW. The growing demand for reliable and continuous power supply, especially in regions prone to outages, is a major driver for micro inverter adoption.

Grid Modernization and Smart Grid Initiatives: The modernization of the power grid and the implementation of smart grid technologies are key drivers of the micro inverter market. In 2023, the U.S. Department of Energy allocated USD 2.5 billion for grid modernization projects, focusing on improving grid reliability, resilience, and integration with renewable energy sources.

USA Micro Inverter Market Challenges:

High Initial Costs: One of the primary challenges facing the micro inverter market is the high initial cost compared to traditional string inverters. In 2023, the average cost of a microinverter system was USD 0.50 per watt higher than that of a string inverter system.

Supply Chain Disruptions: The micro-inverter market has been affected by supply chain disruptions, particularly in the procurement of semiconductors and other critical components. In 2023, the global semiconductor shortage led to extended lead times and increased production costs for microinverter manufacturers.

USA Micro Inverter Market Government Initiatives:

DOE’s Solar Energy Technologies Office (SETO) Funding: The U.S. Department of Energy’s Solar Energy Technologies Office (SETO) announced USD 128 million in funding for solar energy research and development projects in 2023. This funding aims to advance solar technology, reduce costs, and enhance grid integration.

Solar Investment Grants: In 2023, the U.S. Department of Agriculture (USDA) announced the availability of USD 500 million in grants through the Rural Energy for America Program (REAP). These grants aim to support renewable energy projects, including solar installations, in rural areas. By providing financial assistance to farmers, ranchers, and small businesses, the USDA is promoting the adoption of solar energy and, consequently, micro inverters.

USA Micro Inverter Future Market Outlook

The USA micro inverter market is expected to grow in the coming years. The market is also likely to shift towards more organized with established players and online platforms expanding their reach.

USA Micro Inverter Future Market Trends

Integration of Artificial Intelligence (AI): The integration of artificial intelligence (AI) in micro inverters is anticipated to revolutionize the market. AI-enabled micro inverters will offer advanced monitoring, predictive maintenance, and real-time optimization of energy output. By 2028, it is estimated that AI-driven micro inverters will account for a substantial portion of the market, enhancing system efficiency and reliability.

Expansion of Solar-Plus-Storage Solutions: The integration of solar power with energy storage solutions is anticipated to expand over the next five years. By 2028, the USA is expected to see a substantial increase in the deployment of solar-plus-storage systems, with an estimated 20,000 MW of new capacity.
Please Note: It will take 5-7 business days to complete the report upon order confirmation