3 trends influencing the adoption of residential solar PV inverters

Global Market Insights Inc. Mar 03, 2022 EST

The growing adoption of renewable energy sources in tandem with regulatory measures by governments to minimize harmful emissions has led to a paradigm shift in the incorporation of effective energy conservation methods in residential spaces. Energy products have undergone a spate of developments including flexibility, optimized product operations, efficiency, and cost-competitiveness. With increasing investments in the renewable energy sector and an upsurge in the deployment of solar inverters against conventional microinverters, the residential solar PV inverter market forecast is expected to remain strong in the years to come.

The onset of COVID-19 pandemic slowed down many businesses and industries globally. However, the pandemic did not severely affect the solar deployment in 2020. As per National Renewable Energy Laboratory, the countries were adapting more solar PVs in the second half of 2020. Asian countries like India and China were termed to be the largest contributors to the growing market demand owing to advantages like lower costs, easy installation and reliability as compared to the other systems.

For instance, In December 2021, London-based battery and inverter firm Invergy launched hybrid solar inverters in India, which target residential arrays with 3-12kW products to be used in single and three-phase setups. In another instance, Sungrow Power Supply Co Ltd declared shipping almost 10GW solar inverters due to the rising demand in the country. According to the reports by Global Market Insights Inc., the residential solar PV inverter market will depict growth of 4% CAGR through 2028. Given below are the three prominent trends which are anticipated to drive the market growth through 2028:

Positive outlook towards clean energy

Increasing concerns regarding the rising global warming coupled with less reliance on fossil-fuel-based power generation will augment the adoption of solar energy sources. Pilot projects and private investments combined with federal research could support development of emerging technologies like advanced batteries, green hydrogen which can provide zero-carbon electricity and cater to the issues of long-term electricity shortages. In a recent analysis, it was reported that the ongoing growth in solar PV additions globally will record a growth of 162 GW in 2022, accounting for almost over 55% of all renewable energy expansions.

Large-scale renewable integration

Solar-grid integration is a network that allows substantial penetration of photovoltaic power into the national utility grid. The integration of standardized PV systems into grids optimizes building energy balances, reduces operational costs, improves the economies of PV systems and provides added value to the customer and utility. With rapid adoption of green energy, solar-grid integration is now a common practice worldwide. In a recent example, the Australian Energy Market Operator (AEMO) has published a report focusing on speeding up the introduction of grid-scale inverters to back up Australia’s future power system in its transition to inverter-based resources like solar PV.

Growing demand for distributed energy

Distributed energy generation is the process in which numerous technologies produce electricity like solar panels and combined heat and power. The process serves a single structure like the residential sector, in which common distribution systems include solar photovoltaic panels. The use of distributed generation has increased particularly in the United States due to the widespread use of renewable technologies like solar panels. Multiple governments are advancing policies to propel the deployment of renewable technologies because of their benefits like resiliency, energy and emission control. In a nutshell, the deployment of green and renewable sources of energy with technologically advanced methods for producing solar electricity for residential energy will drive the market over the forecast years.

Rooftop solar installation price will temporarily increase in 2022, says GlobalData

Edwin Baranian Feb 16, 2022 EST

A recent report by the leading data and analytics specialist GlobalData reveals that the value chain of the solar industry has experienced a significant hindrance since the pandemic outbreak in 2020. This situation is primarily due to a rise in the price of raw materials and a sharp increase in solar PV system prices caused by the delay in shipments, combined with a lack of workforce availability. This report predicts that the cost of rooftop solar for typical residential homes will moderately increase in 2022, at approximately USD$1.6/W.

However, according to Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData, the cost will decline gradually between 2023 and 2030, thanks to advancements in technology, the reduction of component posts, and the increasing production scale. Some countries have also provided temporary relief in the form of incentives and rebates to overcome the pandemic's challenges.

Beyond the prediction, this report, "Rooftop Solar Photovoltaic (PV) Market, 2021: Global Market Size, Market Share, Major Trends, and Key Country Analysis to 2030", found that the price of panel systems dropped every year between 2013 and 2020, after which COVID-19-related supply chain disruption abruptly stopped this trend.

"To put this in perspective, the cost of installing a rooftop solar system on an average detached residential property* was around $9,300 in 2014. This dropped by between $600-$900 each year, until 2020, with a price of $4,550. In 2021, this price rose by $700—a cost not seen since 2018. We don't expect these costs to go back down now until 2023," says Saibasan.

One-third of global rooftop solar cumulative capacity was installed in residential areas in 2020, with the rest present in the commercial and industrial (C&I) segment.

"The transition of both residential and C&I consumers to 'prosumers'—someone that both produces and uses their own electricity—is increasing due to the adoption of solar panels within building materials, and a preference for small-scale solar in smart cities and microgrids. These are expected to stabilize growth in rooftop solar installations," adds Saibasan.

Wärtsilä Launches "Front-Loading Net Zero" Report Ahead of COP26

Steven Kwok Oct 06, 2021 EDT

The technology group Wärtsilä presents its "Front-Loading Net Zero" report at the Economist Sustainability Week event today, 6 October. This 52-page report states that electricity production costs could be reduced by up to 50% by 2050 if countries adopt 100% renewable systems faster than planned. These significant cost reductions can be achieved by front-loading renewables deployment and utilizing associated technologies (such as energy storage and thermal balancing power plants) to balance their inherent intermittency. California, India, and Germany are the key regions studied in this report. Parts of the benefits bought to these regions by accelerating the 100% renewable energy transition are:

• The acceleration can cut down the overall Levelized cost of electricity (LCOE) significantly. India can halve its electricity costs by 2050, while Germany and California can cut costs by 8% and 17% by 2040, respectively.
• Coal-fired power, which takes up 70% of generation in India and 33% in Germany—can be securely replaced by renewables and flexible energy storage and thermal balancing power plants as early as 2040.
• California can meet 100% Renewables Portfolio Standard (RPS) by 2040 and become carbon neutral by 2045 fully.

To illustrate the measures needed for cost-optimal paths to 100% renewable electricity, Wärtsilä has modeled the transition in California, India, and Germany. Despite vastly different socio-economic dynamics, energy systems, and challenges, these regions' clear and viable pathways show that affordable net-zero economies are in reach for many other countries. Besides the deep dive models, the report also studies and provides pathways for the energy transition in Australia, Chile, and the U.K.

The key steps to front-load net zero © Wärtsilä Corporation

One should acknowledge that there is no single solution that fits all countries. The Front-Loading Net Zero report states that most countries already have all the technologies needed. The key to achieving 100% renewable energy is to front-load and start now

As it is presented ahead of the UN Climate Change Conference (COP26) which will take place from 31 October to 12 November, Håkan Agnevall, President & CEO of Wärtsilä, views that the report "should act as a wake-up call for leaders, as this is our last and best chance to get countries on pathways to carbon neutrality. Our modelling shows that it is viable for energy systems to be fully decarbonised before 2050." Visit the official page of the report and download it for free.

Growing demand for distributed energy

Distributed energy generation is the process in which numerous technologies produce electricity like solar panels and combined heat and power. The process serves a single structure like the residential sector, in which common distribution systems include solar photovoltaic panels. The use of distributed generation has increased particularly in the United States due to the widespread use of renewable technologies like solar panels. Multiple governments are advancing policies to propel the deployment of renewable technologies because of their benefits like resiliency, energy and emission control. In a nutshell, the deployment of green and renewable sources of energy with technologically advanced methods for producing solar electricity for residential energy will drive the market over the forecast years.

Solargis Launches Whitepapers on Better Albedo Measurements for Bifacial PV Projects

pv MAG Sep 30, 2021 EDT

• According to the “Albedo for bifacial PV projects” (2021) report, bifacial technology has the potential to generate up to 4-17% more solar power than traditional modules.
• Understanding the albedo resource is vital in developing bifacial projects.
• The solar industry is facing great challenges in accurately predicting the power output of bifacial installations in locations with snow and extreme seasonal climates.

The solar industry has made breakthroughs by creating solar bifacial technology, bifacial modules can achieve a 29% power output efficiency. This technology fully uses a solar resource known as ‘Albedo’, which consists on the reflection of solar radiation on different soils.

To fast-track this revolutionary technology, the industry needs to show the true gain of bifacial modules by creating precise tools that measure albedo, justifying the 4-17% power gain advertised for this technology and grab the interest and trust of investors. Solar developers and asset owners who are optimizing their albedo assessment, make significant gains in a competitive ground such as the solar industry. Solargis, the largest solar data and software developer for bankable solar investments, has released a two-part report titled “Albedo for bifacial PV projects” (2021). This report analyzes and explains the lack of understanding and need for improvement in measurement techniques of the albedo resource, outlining the best approach to this practice.

Solar project developers are currently looking towards bifacial technology to maximize solar power production at their sites. Developers are especially interested in this technology because the cost for bifacial solar modules is growing closer to traditional modules and they are looking to ride this new wave of cost reductions that yields great profits in a rapidly growing industry.

The use of bifacial modules and sun tracker technologies is still lacking in key growth markets, which is why it requires gaining greater confidence by using more price tools that yield better energy predictions. The Solargis report has shone a light on the real understanding over the albedo resource, vital to accurately predict the production of bifacial modules. Regularly used tools do not consider that bifacial technology is more sensitive to variations than monofacial, creating uncertainty on the energy estimates yielded by these. The Solargis report explains that the real challenge of accurately predicting bifacial production is to consider the high degree of temporal and spatial variability. Commonly available databanks do not have the required resources to make these predictions as assessed by Solargis. Additionally, the albedo measurements performed for large-scale installations are acquired using short-term data, creating another layer of uncertainty and making them not reliable.

According to Marcel Suri, the CEO of Solargis, the uncertainty that could be caused in the bifacial industry due to inaccuracy in calculations of the albedo resource and power predictions, will be inconvenient when making decisions in bankable bifacial projects. This will be affecting long-term financial modeling and projections for these projects. The solar industry must tackle these obstacles beforehand, by creating accurate models that use more precise data reflecting the real efficiency gain of these modules, allowing the further development of bifacial projects worldwide. Vicente Lara-Fanego, the author of the Solargis report, commented that their work (performed alongside solar asset owners) has shown them that truly understanding the albedo resource using reliable data, is crucial for these projects. The goal of this report is to truly understand the implications of not having reliable calculations for the albedo resource, create proper methodologies for this, and pave the way to help the solar sector further develop the tools to achieve its goals with bifacial technology. To further understand the implications and information in this report, you can read the “Albedo for bifacial PV projects” (2021) report by Solargis.