Grid-Forming Micro-Inverter Market Size, Share & Industry Analysis, By Application (Residential Solar Installations and Commercial Solar Installations), and Regional Forecast, 2025-2032

The global grid-forming micro-inverter market size was valued at USD 19.20 million in 2024. The market is projected to grow from USD 20.25 million in 2025 to USD 32.22 million by 2032, exhibiting a CAGR of 6.86% during the forecast period.

Grid-forming micro-inverter is a device that helps convert Direct Current (DC) electricity from solar panels into Alternating Current (AC). They are also capable of regulating the voltage and frequency of the power system. These devices play a key role in creating self-sufficient solar energy systems, allowing them to function independently during outages.

Enphase Energy, a U.S.-based microinverter technology provider, is one of the prominent players in the market. The company’s IQ 8 series is the flagship microinverter product, which is designed for compatibility with the latest-generation high-efficiency PV modules. It is easy to use, lightweight, and compact with a plug-and-play solution. The company offers a range of other solutions for easy and better adoption of solar energy.

MARKET DYNAMICS

MARKET DRIVERS

Government Incentives and Policies are Anticipated to Support Market Growth

Government policies and renewable energy incentives play a critical role in driving the global market. Many countries are emphasizing clean energy solutions and implementing regulations and energy storage technologies. Such measures support the growth of the demand for such inverters that enable grid stability, integration of renewable energy sources, and others. For instance, the European Union’s Renewable Energy Directive mandates that at least 42.5% of the EU’s energy mix must come from renewables by 2030, boosting demand for advanced solar technologies and thereby supporting global grid-forming micro-inverter market growth.

MARKET RESTRAINTS

Technical Complexity and Limited Application could Hinder Market Expansion

Grid-forming micro-inverters need to actively regulate voltage and frequency, making them more complex than conventional grid-following inverters. Integration into existing solar PV systems can be challenging due to compatibility issues with grid infrastructure. Unlike string and central inverters that find application in wind power plants and energy storage systems, grid-forming micro-inverters find their application mainly in solar installations.

MARKET OPPORTUNITIES

Expansion of Solar Energy to Positively Impact Market Growth

The global solar energy market has been experiencing exponential growth, driven by declining solar panel costs and increasing awareness of renewable energy benefits. As the adoption of solar energy expands across residential and non-residential sectors, the demand for micro-inverters will experience growth. The rapid expansion of solar energy deployment is one of the primary factors driving the market growth. These inverters are emerging as a critical solution due to their ability to enhance energy reliability and optimize power generation.

GRID-FORMING MICRO-INVERTER MARKET TRENDS

Growing Need for Grid Stability and Resilience

Transition to decentralized renewable energy systems is driving the need for solutions for grid stability and resilience. Grid-forming micro-inverters play a critical role in enhancing the operational reliability and flexibility of power grids.        These products can establish and regulate voltage and frequency independently. Grid-forming micro-inverters can autonomously energize a grid after a power outage. They can also enable intentional islanding, where a system can continue operating independently from the main grid, which is important for microgrids and critical infrastructures.

Request a Free sample to learn more about this report.

Segmentation Analysis

By Application

Commercial Solar Installations Owing to Growing Adoption of Solar Energy

Based on application, the market is classified into residential solar installations and commercial solar installations.

Commercial solar installations are anticipated to dominate global grid-forming micro-inverter market share. It includes installations on commercial buildings and other facilities that require high efficiency, reliability, and grid-supporting capability. The growing adoption of solar energy in these areas is anticipated to support the growth of micro-inverters as they play a critical role in enabling efficient integration.

Residential solar installations are anticipated to grow fastest over the forecast period. Residential solar systems generally consist of rooftop solar panels installed on individual homes. Homeowners are increasingly integrating micro-inverters owing to their ability to enhance energy self-sufficiency and improve system efficiency. Thus, their increasing adoption is driving the segment’s growth.

Grid-Forming Micro-Inverter Market Regional Outlook

By geography, the market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific

To get more information on the regional analysis of this market, Request a Free sample

Asia Pacific region is anticipated to dominate the market share. Asia Pacific is one of the most prominent markets for solar technologies owing to the high adoption of solar energy by countries in the region, particularly China and others. China is at the forefront of manufacturing solar technologies as well as boasts 887 GW of installed solar capacity, the highest globally. As of January 2025, India's total solar capacity installed stands at 100.33 GW, which is another crucial market followed by China. Thus, such high penetration of solar energy in the region is anticipated to support the adoption of grid-forming micro-inverters.

North America

The rise in residential solar installations, favorable government policies, and advancements in technology drive the market in North America. The region’s emphasis on renewable energy and energy autonomy boosts demand, establishing it as a key participant globally.

The U.S. market is experiencing growth, driven by increasing solar energy adoption, supportive government policies, and technological advancements. Key factors include rising demand for clean energy, government incentives, and the advantages of micro-inverters for residential and small commercial applications.

Europe

The expansion of solar energy in Europe is fueled by various factors, such as the energy crisis, favorable government initiatives, falling technology prices, and heightened environmental consciousness, resulting in a considerable rise in solar capacity and production. The advent of solar renewable energy in the region is anticipated to support the adoption of grid-forming micro-inverters.

Latin America

In Latin America, Mexico and Brazil are driving the clean energy transition movement in the region and contributing to global climate goals. With increasing solar energy adoption in the region, the utilization of micro-inverters is anticipated to rise. According to the Brazilian Association of Photovoltaic Solar Energy (ABSolar), solar power has reached the 52 GW mark of operational installed capacity in Brazil. This aspect presents an immense opportunity for the growth of the micro-inverter market.

Middle East & Africa

The adoption of solar energy in the Middle East & Africa region is swiftly increasing, fueled by plentiful solar resources, a surge in energy needs, and an emphasis on renewable energy, as solar emerges as a financially viable substitute for fossil fuels. Saudi Arabia is actively promoting solar energy adoption, driven by Vision 2030 goals to diversify its economy, reduce reliance on hydrocarbons, and achieve 50% renewable energy by 2030, including 40 GW from solar PV.

COMPETITIVE LANDSCAPE

Key Industry Players

Technological Advancements and Products Launches by Market Players Anticipated to Grow Product Adoption 

The market players in the market are introducing new product offerings with enhanced features and reliability. For instance, In December 2023, Spitzer Energy introduced a new series of micro-inverters with enhanced AC production capacity that minimizes clipping, extends daytime output, and offers improved DC-to-AC conversion.

LIST OF KEY GRID-FORMING MICRO-INVERTER COMPANIES PROFILED

• Infineon Technologies AG (Germany)


• SUNGROW (China)


• Sparq Systems (Canada)


• Enphase Energy (U.S.)


• Hoymiles Power Electronics Inc. (China)


• SMA Solar Technology AG (Germany)


• Benyi New Energy Co, Ltd. (China)


• Altenergy Power System Inc. (China)


• Chilicon Power, LLC. (U.S.)

KEY INDUSTRY DEVELOPMENTS

• November 2024: Deye, a China-based manufacturer, introduced a new microinverter series presenting three models, with PV input capacities ranging from 1,320 W to 2,200 W and output capacities between 600 W and 1,000 W.


• November 2024: Servotech Power Systems introduced several new solar offerings, such as on-grid microinverters, among other solutions. STMSI-800 and STMSI-1600 micro inverters feature automatic power point tracking and a patented reverse AC power transmission system. This technology focuses on delivering power to the load while returning any unused power to the grid.


• June 2024: Hoymiles unveiled a 5 kW three-phase microinverter, MIT-5000-8T. It can hold eight solar panels and is considered especially ideal for large residential PV systems or commercial uses.


• March 2024: Envertech, a power electronics manufacturer, introduced an 800 W microinverter for home and balcony solar power, which is stated to have a maximum efficiency of 96.8%.


• February 2024: Canada-based Sparq Systems Inc. announced the execution of a manufacturing and supply agreement with Jio Things Limited. The agreement includes the development, production, and global distribution of microinverters in India.

REPORT COVERAGE

The global grid-forming micro-inverter market report delivers a detailed insight into the market. It focuses on key aspects, such as leading companies in the global market. Besides, it offers insights into the market trends & technology and highlights key industry developments. In addition to the factors above, it encompasses several factors and challenges that contributed to the growth and downfall of the market in recent years.

To gain extensive insights into the market, Request for Customization

Report Scope & Segmentation