On Grid PV Inverter Market Size - By Product, By Phase, By Application, By Nominal Output Power, By Nominal Output Voltage, Forecast, 2025 - 2034

On Grid PV Inverter Market Size

The global on grid PV inverter market size was valued at USD 29.5 billion in 2024 and is estimated to grow at a CAGR of 9.1% from 2025 to 2034. Increasing advancements in PV technology to make the product efficient, reliable, and cost-effective including features such as advanced grid support functions, and enhanced energy management capabilities, will augment the business scenario. Additionally, the declining cost of solar panels and related components to make renewable power systems more affordable is set to stimulate product demand.
 

Supportive government policies and standards, along with the increasing integration of smart grid technology, are anticipated to influence product adoption. In March 2024, India's Ministry of Power launched the Standards and Labeling (S&L) Program for grid-connected solar inverters to enhance efficiency. The initiative aims to save 21.1 billion kWh by 2033-34, reducing CO? emissions by 15.1 million tonnes, fostering consumer confidence, thereby driving market growth.
 

Rising governments and organizations' ambitious targets for renewable energy adoption to combat climate change will influence product adoption. Ongoing introduction of supportive policies and incentives including net metering to encourage the adoption of solar power will positively influence the industry growth. Growing awareness of environmental issues and increasing companies' push towards solar power to reduce the issues and their carbon footprint will enhance the product demand.
 

The proliferation of utility-scale solar projects and the rising demand for energy storage solutions are anticipated to stimulate the demand for on grid PV inverters. For instance, in November 2024, the 140 MW Wolf Run Solar Park in Illinois became operational, powering 35,000 homes. Such large-scale installations, coupled with advanced storage integration, require efficient inverters for seamless power conversion and grid stability, thereby driving market growth.
 

On Grid PV Inverter Market Trends

• The introduction of demand flexibility programs and the increased use of AI-based energy management systems will support the adoption of on grid PV inverters. In February 2025, a GBP 6.7 million UK government pilot scheme for 500 solar panel and battery-equipped homes was launched to maximize energy usage during low-cost times. The program is anticipated to reduce electricity costs and improve grid stability, helping to drive product demand.
   
• Rising cost of electricity from traditional sources is prompting consumers and businesses to seek alternative solutions thereby building opportunities for product adoption. Shifting focus towards energy security will accelerate the product demand owing to its ability to generate electricity locally, thereby enhancing energy security and reducing dependence on external sources.
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• Smart grid infrastructure development and IoT technology innovations will enhance real-time monitoring and control in solar power systems, improving product efficiency and reliability, thereby complementing market expansion. In October 2024, Sungrow launched the SG150CX at REI Expo, featuring 48A MPPT input current for larger PV modules and AFCI 3.0 for enhanced safety. With real-time temperature monitoring, over-temperature protection, and improved grid compatibility, the inverter boosts efficiency and reliability, fostering market growth.
   
• The establishment of standardized cybersecurity protocols for distributed energy resources is anticipated to influence the on grid PV inverter market. In April 2023, UL Solutions, in collaboration with the National Renewable Energy Laboratory, released UL 2941, a cybersecurity standard providing testable requirements for energy storage and generation technologies on the distribution grid. This framework is expected to enhance the security of PV inverters and other distributed resources, thereby driving market expansion.
   

On Grid PV Inverter Market Analysis

• The on grid PV inverter market was valued at USD 22.1 billion, USD 25.7 billion, and USD 29.5 billion in 2022, 2023, and 2024, respectively. The industry is segmented into string, micro, and central based on product.
   
• String inverter segment is anticipated to grow at a CAGR of over 10.1% during 2025-2034, boosted by cost-effectiveness and flexibility of solar installation in residential and commercial sectors. Massive product installations and increased manufacturing will further drive industry growth. For instance, in December 2023, Howd Innovations' Solar Yaan introduced grid-connected three-phase string inverters from 5 kW to 25 kW with a peak efficiency of up to 99.8% and support for bifacial PV modules.
   
• The central inverter segment held a market share of 37.3% in 2024, which is anticipated to improve further by the year 2034, augmented by its increasing adoption in utility projects and large solar farms. It is economical and offers high power capacity, making it the preferred choice for grid-connected solar systems. Moreover, continuous technology advancements in inverters will improve efficiency and grid stability, further increasing product utilization.
   
• The microinverter market is expected to be valued at around USD 8.7 billion in 2034, driven by technological innovation and increasing residential solar uptake. Improved efficiency benefits and easier installations will further drive the market expansion. In February 2025, Hoymiles released its MiS series grid-tied microinverters in Intersolar North America with a 2.43 lb lightweight and reducing the installation time by 70% over conventional systems.
   

• Based on the phase, the on grid PV inverter market is segmented into single phase and three phase. The three phase segment holds a market share of 89.4% in the year 2024.
   
• ?The three phase market segment is expected to witness growth due to its suitability for commercial and industrial-scale solar energy installations. Moreover, greater power capability and grid reliability make these inverters a preferable option. In April 2024, Dutch solar company Autarco introduced LH-MII models of grid-tied three-phase hybrid inverters with DC capabilities ranging from 8 kW to 16 kW, AC outputs ranging from 5 kW to 10 kW, and with a 97.5% European efficiency ranking, boosting industry innovation.
   
• The market for single phase inverters is anticipated to exceed USD 9.3 billion by 2034 supported by its growing application in small commercial and residential solar installations. It is an ideal choice for distributed solar power generation due to its affordability, ease of installation, and compact design. Higher rooftop solar installations and government policies will also fuel product installations.
   

• As of 2024, North America holds a market share of approximately 19% which is expected to improve further by 2034. The U.S. on grid PV inverter market was valued at USD 4.3 billion, USD 4.9 billion, and USD 5.5 billion in 2022, 2023, and 2024, respectively.
   
• ?Growth in grid modernization investments, increasing adoption of solar-plus-storage, and federal incentives for renewable integration will drive the expansion of the U.S. on grid PV inverter market. Increasing demand for high-efficiency storage systems to improve grid stability will support the product adoption. In March 2025, SMA America introduced the Sunny Central Storage UP-S, a grid-tied battery inverter with a maximum efficiency of 99.2% and 4,600 kVA capacity, for utility-scale solar and storage deployment.
   
• The European on grid PV inverter market is projected to grow at a CAGR of more than 12.4% between 2025 and 2034, influenced by rising residential solar adoption and advancements in hybrid inverter technology. Government incentives promoting clean energy and increasing efficiency demands will complement industry expansion. Additionally, expanding grid modernization initiatives and smart inverter deployments will support market penetration.
   
• The Asia Pacific industry is expected to be valued beyond USD 25.3 billion by 2034. The government initiative towards renewable energy adoption, innovation in inverter solutions, and rising demand for energy storage systems will drive industry expansion. In October 2024, Solis launched its 8kW, 15kW, and 50kW grid-connected PV inverters, providing high-strength energy storage solutions for residential and commercial use, which reflects the region's focus on advanced solar technology.
   

On Grid PV Inverter Market Share

• The top five players, Darfon Electronics, Delta Electronics, Eaton, Enphase Energy, and Fimer Group, hold a 42.1% market share in the on grid PV inverter industry. Industry leaders collaborate strategically to strengthen technical expertise, drive innovation, and enhance their market position. Strategic alliances between solar developers, grid managers, and energy storage solution providers assist in facilitating easy integration of PV inverters into existing grid networks.
   
• Eminent players are focusing on the implementation of IoT and AI technologies in their inverters to offer remote monitoring and diagnostic capabilities to gain a competitive edge, and to gain market share. Major players are spending heavily on research and development and product innovation such as smart inverters with advanced grid-support capabilities, and advanced maximum power point tracking (MPPT) algorithms to build brand reputation and gain market position.
   

On Grid PV Inverter Market Companies

Eminent players operating in the On grid PV Inverter industry are:

• Canadian Solar
• Darfon Electronics
• Delta Electronics
• Eaton
• Enphase Energy
• Fimer Group
• GoodWe
• Schneider Electric
• Servotech Power Systems
• SMA Solar Technology
• Sungrow Power Supply
• Solis Inverters
• SolarEdge Technologies
• Statcon Energia
• UTL Solar
• V-Guard Industries
   

• Schneider Electric is a growing player in the on grid PV inverter market, producing USD 41.5 billion in revenue and USD 7.6 billion in adjusted EBITA in 2024. It invested USD 2.3 billion in R&D to enhance inverter technology for seamless grid integration, focusing on improving efficiency and simplifying renewable energy adoption.
   
• Eaton Corporation is a growing company in the on grid PV inverter market through its sophisticated power solutions. It registered USD 24.5 billion in revenue and USD 4.1 billion in adjusted EBITDA in 2024. It combines energy storage and renewables to maximize inverter efficiency. The company concentrates on enhancing grid resilience and sustainability through its innovations.
   

On Grid PV Inverter Industry News:

• In May 2024, Statcon Energiaa launched a 3-kW single-phase grid-tied solar inverter that is particularly suitable for residential and small office usage. The inverter features high-end capabilities such as MPPT for enhanced solar output, remote monitoring over WiFi, and robust anti-islanding protection for maximum efficiency and safety. With the launch of the product, the company aims to expand its customer base and market share in the Indian PV inverter market.
   
• In March 2024, GoodWe India forges a strategic partnership with Antyodaya Ujas. As an Authorized Distributor, Antyodaya Ujas will sell and distribute GoodWe's solar inverters and energy storage products in West Bengal and Pan-India. The two companies have joined forces in this partnership to leverage their synergies and accelerate the adoption of clean and green energy solutions in India.
   

The on grid PV inverter market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion & MW)” from 2021 to 2034, for the following segments:

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Market, By Product

• String
• Micro
• Central

Market, By Phase

• Single phase
• Three phase

Market, By Nominal Output Power

• ≤ 0.5 kW
• 0.5 - 3 kW
• 3 - 33 kW
• 33 - 110 kW
• > 110 kW

Market, By Nominal Output Voltage

• ≤ 230 V
• 230 - 400 V
• 400 - 600 V
• > 600 V

Market, By Application

• Residential
• Commercial & industrial
• Utility

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • Italy
  • Poland
  • Netherlands
  • Austria
  • UK
  • France
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Israel
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Chile