Press release
United States Solar Inverter And Battery Market is seeing strong growth at a CAGR of 10.8%, China leads 80% of Asia Pacific region | Key Players:- Huawei Technologies Co., Ltd., SMA Solar Technology AG, Sungrow Power Supply Co.
The Solar Inverter And Battery Market reached US$ 10.1 billion in 2022 and is expected to reach US$ 22.9 billion by 2030, growing with a CAGR of 10.8% during the forecast period 2024-2031.DataM Intelligence unveils its latest report on the "Solar Inverter And Battery Market size 2026," offering an in-depth analysis of market trends, growth drivers, competitive landscape, and regional dynamics. The study covers market size in value and volume, CAGR forecasts, and emerging opportunities that can guide businesses in seizing growth potential and crafting winning strategies. Packed with data-driven insights on current developments and future trends, this report is essential for companies aiming to stay ahead in the competitive Market.
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United States: Key Industry Developments
✅ December 2025: Wood Mackenzie reported record residential battery installs projected for Q4, with 647 MW deployed in Q3 alone, driven by 70% year-over-year growth and attachment rates hitting new highs ahead of federal ITC expiration.
✅ November 2025: U.S. solar inverter shipments peaked at 47 GWac amid strong demand, though a 22% decline was forecasted for 2026 post-Inflation Reduction Act phaseout, boosting hybrid solar-battery adoption.
✅ September 2025: Residential solar and battery storage markets expanded with 4-7 year paybacks in top states, fueled by dropping cell prices below $100/kWh and rising household electrification from EVs and heat pumps.
Asia Pacific / Japan: Key Industry Developments
✅ November 2025: Japan's solar inverter demand surged within Asia Pacific's industrialization push, with central inverters gaining traction for large-scale PV projects amid renewable infrastructure builds.
✅ October 2025: Panasonic unveiled advanced hybrid solar inverters with integrated battery management in Japan, enhancing energy storage efficiency for off-grid and residential use in high-demand urban areas.
✅ August 2025: Japanese firms accelerated subsidies for solar-battery systems, promoting on-grid inverters to cut carbon footprints and support rural electrification amid declining solar component costs.
Latest M&A Activity
◾ Amber Group (via IL JIN Electronics India) acquired majority stake in PowerOne Micro Systems in July 2025, entering solar inverters, BESS, and EV chargers with pan-India manufacturing synergies.
◾ 50 solar M&A deals occurred in H1 2025, up from 40 in H1 2024, driven by policy shifts and corporate funding despite a 39% YoY decline.
◾ Waaree Solar Americas invested in a polysilicon company in December 2025 to bolster supply chain resilience.
Recent Partnerships:-
◾ Major investors (NIIF, KKR, Sembcorp) compete for Shell's Sprng Energy stake as of January 2026, targeting India's renewable portfolio growth.
◾ Corporate giants like Google, Apple, and Amazon expanded solar+battery procurement, capturing 18% of U.S. capacity via strategic supplier alliances.
Recent Product Developments:-
◾ EG4 Electronics launched GridBOSS MID and FlexBOSS21 hybrid inverters in November 2024, emphasizing high-power efficiency for residential/commercial microgrids.
◾ Market innovations focus on grid-tied hybrids with smart monitoring, supporting 9.4% CAGR to $26.67B by 2035 amid solar PV growth.
Key Players:-
Key players are Huawei Technologies Co., Ltd., SMA Solar Technology AG, Sungrow Power Supply Co., Ltd., ABB Ltd, Schneider Electric SE, Enphase Energy, Inc., Fronius International GmbH, LG Electronics Inc., Tesla, Inc. and SolarEdge Technologies Inc.
Key Growth Drivers
Government Initiatives: PM-KUSUM, National Solar Mission, PLI schemes, and net metering boost residential/commercial installs amid 42+ GW solar capacity.
Rising Power Demand & Outages: Urbanization, EVs, data centers drive hybrid inverters; frequent grid failures spur backup storage needs.
Falling Costs & Tech Advances: Cheaper panels, >99% efficient GaN/SiC inverters, lithium-ion batteries reduce reliance on lead-acid for solar hybrids.
Sustainability Push: Solar parks (40 GW approved), rural electrification, and carbon goals accelerate rooftop + BESS adoption.
Rooftop & Residential Surge: Maharashtra/Gujarat lead; subsidies cut costs, enabling 1-10 kW inverters for 63% market share.
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Regional Highlights:-
Asia-Pacific Highlights
Asia-Pacific dominates with the largest market share, driven by massive solar PV installations in China and India, government incentives, and rapid renewable investments. China leads exports at 80% globally, while India projects solar battery growth to USD 529 million by 2030 at 15.22% CAGR. The region holds 40% share, fueled by policies like China's 14th Five-Year Plan.
North America Highlights
North America, led by the U.S., captures about 25% share with strong residential solar-plus-storage growth, federal tax credits like the Inflation Reduction Act, and utility-scale projects. The U.S. accounts for nearly 3/4 of regional demand, boosted by Enphase's microinverters and grid modernization. Battery storage inverters see rapid adoption amid EV integration and peak demand management.
Europe Highlights
Europe holds around 30% share, with Germany leading at 26% via feed-in tariffs and utility-scale solar. The PV inverter market expects sales to triple from 2.32 million units in 2024 to 6.74 million by 2030 at 21% CAGR, driven by smart grids and hybrid systems in France, Italy, and the UK. Regulatory support and net-zero goals accelerate demand.
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Market Segmentation:-
Connection Type
On-grid solar inverters and batteries connect directly to the utility grid, enabling excess power export and grid supplementation during low generation, which ensures reliability and cost savings through net metering. These systems suit urban and commercial setups with stable infrastructure, holding the largest share at approximately 65% of the market due to widespread adoption and efficiency. Off-grid systems operate independently with full battery reliance for remote or unreliable grid areas, capturing about 22% share driven by rural electrification needs. Hybrid-grid (or hybrid) combines both, storing energy for outages while allowing grid interaction, accounting for 17% amid rising demand for resilient backups.
Inverter Type
Central inverters manage large-scale utility projects by aggregating power from multiple strings at high voltage for optimal efficiency in ground-mounted arrays, though they hold around 16% share due to higher costs and single-point failure risks. String inverters, the market leader at 53%, connect series of panels for balanced residential and commercial use, offering scalability and lower upfront costs. Micro inverters, installed per panel for shade tolerance and individual optimization, claim 21% share, gaining traction in complex rooftops despite premium pricing.
Battery Type
Lead-acid batteries provide cost-effective, recyclable storage for basic off-grid needs but limit depth-of-discharge and lifespan, securing 20% market share in budget applications. Lithium-ion batteries lead with 63% dominance, delivering higher energy density, faster charging, and 10-15 year lifespans ideal for frequent cycling in residential hybrids. Others, like flow or sodium-ion, represent 11% as emerging options for specialized large-scale or high-temperature uses.
End-User
Residential users prioritize compact hybrids for self-consumption and backups, holding 32% share boosted by incentives and falling costs. Commercial segments, at 44%, deploy larger string or central systems for rooftops to cut peak tariffs and ensure uptime. Industrial and utility end-users favor scalable central inverters with lithium storage for 24/7 operations, comprising 24% amid corporate sustainability mandates.
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