The European solar supply chain has been immensely dependent on inverter manufacturing. In 2023, more than 80 GW of inverters were manufactured in the region, of which 86% were string inverters. The European Secretariat in association with the SolarPower Europe Board highlighted the importance of reinforcing the manufacturing base for solar inverters in the region. This is attributed to the increasing price pressure on the manufacturers. Manufacturers are forced to discount their prices owing to rising global competition.
The string inverters have major applications in rooftop PV systems in residential and small-scale commercial facilities. However, the global manufacturing overcapacity and a slowdown in rooftop PV adoption are challenging the regional market growth. Inverters are critical to Europe as they electrify and digitalize its energy systems, by connecting the solar output to grids, batteries, and other clean energy technologies. Thus, the government established an Important Project of Common European Interest (IPCEI) on smart and secure electrification, in November 2024.
The manufacturers are focusing heavily on product innovation to maintain the position of Europe in the global competition. For instance, in July 2024, SolarEdge Technologies, Inc., launched its high-power SolarEdge TerraMax™ Inverter combined with H1300 Power Optimizers. The inverter is well-suited for small-to-medium utility-scale PV installations. It also applies to varied topologies and challenging site conditions, such as ground-mounted sites on sloped, uneven, or irregularly shaped terrains, and dual-use sites.
Additionally, in June 2024, Enphase Energy, Inc. showcased various products at The Smarter E Europe (Intersolar Europe) in Munich, Germany. The product portfolio includes IQ® Battery 5P with FlexPhase, IQ® System Controller 3, IQ8X™ Microinverters, IQ8P™ Microinverters, IQ® Energy Management, Solargraf® software platform, IQ® EV Chargers, and IQ® Balcony Solar Kit.
In June 20204, SolarEdge Technologies, Inc. unveiled a three-phase solar inverter and dedicated home battery for the European residential market, at the Intersolar 2024. The battery is expected to be available in the second half of 2025. The inverters will provide a power of up to 20kW, suitable for full home backup applications. The product will feature Silicon Carbide (SiC) switches.
In June 2024, Solar Solutions Group launched a new product line, at ‘The Smarter E’ in Munich. The product line caters to 360° solutions for home and business. It offers a stackable battery for modular energy storage, a matching hybrid inverter, and high-efficiency Back-Contact and N-Type solar modules ranging from 435 to 615 Wp.
In a nutshell, the European solar inverter market calls for immediate action to sustain its position in the global markets. The market players are playing their part by incorporating R&D and product innovation to maintain the pricing levels. However, the revival of the industry demands the enforcement of the highest standards on cyber- and energy security, and provisions for direct financial support mechanisms to enhance its competitiveness on a global scale.