Microinverters Heating Up in the Solar Industry

Solar Photovoltaic (PV) microinverter shipments are predicted to quadruple in 2017, reaching 2.1 GW per year worldwide according to the report, The World Market for PV Microinverters and Power Optimizers - 2013 Edition" by IHS Electronic & Media. Microinverters convert the direct current (DC) electricity generated by each solar panel into alternating current (AC) power to be compatible for household use. Although more expensive than conventional inverters, they have a higher energy yield, and are more efficient and reliable. Microinverters prevent the "Christmas light effect" that conventional inverters face, in which the entire system will fail with just one error in part of the system. Each panel has its own microinverter that converts the electricity as it is generated. Therefore, shading or any electrical problems will only affect that one panel, instead of the entire system. This makes them more efficient and reliable, whereas conventional inverters are only as strong as the systems weakest link. 

Until recently, microinverters were restricted to the U.S residential market, but the suppliers are striving to expand the efficient technology to new regions and commercial markets. Regions with new solar PV markets like Australia and the United Kingdom are great targets because they are open to new technology options. The U.S. accounted for 72% of global microinverter shipments last year, but that number is expected to fall to 50% by 2017 due to the expansion of the microinverter market in Europe and Asia. The rise in new companies and growth in supply of microinverters are increasing competition and therefore, dropping costs. According to the IHS report, microinverter prices will drop by 16% this year, yet revenue will still increase to more than $250 million, and will reach $700 by 2017. 

Enphase Energy, the world's 2012 leading microinverter supplier and the supplier of NC Solar Now, is facing growing competition and has resulted in targeting new markets, specifically commercial projects. They recently announced that they will be doing a 2MW installation in Canada. Almost 1/3 of global microinverter shipments will be going to commercial projects in 2017, compared to only 9% in 2012, mainly systems sized between 10-11 kw. Microinverters have become the technology of choice in the solar world and will continue to make solar systems more efficient and reliable as they are welcomed in commercial projects all across the globe.