The solar inverter market in India is an essential link in the solar supply chain. The solar inverter industry has evolved over the years from relying on conventional central inverters to deploying high-power string inverters and microinverters, which offer improved efficiency, modularity and flexibility. Policy developments and government initiatives have further catalysed this transition, ensuring that inverters meet stringent performance standards while also supporting large-scale solar deployments. The demand for solar inverters continues to grow, driven by utility-scale solar projects, residential rooftop installations, and hybrid storage systems. With the share of solar energy increasing in India’s renewable energy mix, the role of solar inverters extends beyond energy conversion. They are now pivotal in stabilising grid operations, providing real-time voltage and frequency adjustments, and mitigating fluctuations caused by intermittent solar energy generation.
Renewable Watch presents an overview of India’s solar inverter market – covering the market landscape, technological advancements, and the recent policy initiatives, along with the challenges faced by the segment and the path forward…
Market landscape and technology advancements
Globally, the solar inverter market is set to experience key shifts in 2025, influenced by innovation and competition. According to S&P Global Commodity Insights, global inverter shipments are expected to increase by 7 per cent to reach 570 GWAC in 2025. Market revenue in this space is also anticipated to grow by 8 per cent, with a strong recovery expected in the European residential segment and increased demand from weak-grid markets in Africa, the Middle East and Southeast Asia.
The solar inverter market in India has also experienced exponential growth in recent years, driven by the country’s push for renewable energy adoption. The key global and Indian players in this segment are Sungrow, TBEA Energy India, FIMER India, Sineng Electric, Ginlong (Solis) Technologies, Microtek, UTL Solar, Su-Kam, Livguard, Delta Electronics, Servotech, Luminous Power Technologies, Hitachi, Nexus Solar, Waaree, Eapro Global, Goldi Solar, Lento India and Smarten Power Systems.
In the technology space, the demand for traditional central inverters remains high, particularly for large-scale projects, with these inverters accounting for 49 per cent of the market share in 2024. String inverters are widely adopted in commercial and residential segments due to their lower initial cost and ease of installation. Meanwhile, microinverters are gaining traction in distributed generation applications. Hybrid and smart inverters using IoT and AI-ML are also entering the solar market.
According to CLASP, grid-connected solar inverters account for nearly 80 per cent of the solar PV market in India, with the market size reaching 2,520 MW in 2022-2023. The market is expected to grow to $1.1 billion by 2026, with a projected CAGR of 14.4 per cent from 2020 to 2026. Inverters with a rated output power capacity of 1-10 kW dominate the market, accounting for nearly 63 per cent of installations. Single-phase solar inverters are prevalent in the up to 5 kW segment, while three-phase inverters are preferred for higher capacities.
The competition within the inverter industry remains intense, pushing suppliers to continuously innovate. Key trends include the rise of hybrid inverters, which integrate energy storage capabilities, allowing consumers to optimise self-consumption and grid interaction. The introduction of large 2,000 V central inverters is also expected, enabling longer module strings and reducing balance of system (BoS) costs by 10-15 per cent. Additionally, cybersecurity concerns are driving regulators to implement stricter controls, with growing scrutiny on foreign inverters and concerns over remote access vulnerabilities.
Technological advancements have also shifted the industry towards high-power string inverters, which offer reduced balance of system costs due to fewer required units per block and improved DC-to-AC conversion efficiency. High-power string inverters have also improved the levellised cost of energy by increasing DC overloading capacity, thus allowing for greater energy capture from solar modules. Furthermore, the integration of smart communication technologies in inverters has allowed real-time remote monitoring, predictive maintenance and seamless integration with emerging grid management systems.
The solar inverter market is also witnessing rapid integration of digital technologies and the IoT. AI driven monitoring systems, machine learning-based performance optimisation and remote diagnostics are improving inverter efficiency and operational reliability. Major manufacturers are launching inverters with built-in IoT capabilities, allowing real-
time monitoring, fault detection and predictive maintenance.
Additionally, an important advancement in solar inverter technology has been the introduction of modular central inverter designs for large-scale solar plants. In April 2024, SMA introduced the Sunny Highpower PEAK3 modular central inverter, capable of handling up to 150 kW of power with a system voltage of 1,500 V DC. Its high-power density and compact size have enabled cost-effective installations with reduced system losses. These inverters support project-specific DC combiner boxes, allowing system oversizing up to 150 per cent. Furthermore, such inverters include smart Ethernet-based communication that enables real-time monitoring and rapid system configuration.
The market has also witnessed an increase in the adoption of microinverters, particularly in the residential and commercial rooftop segments. Microinverters offer improved panel-level optimisation, making them more resilient to shading and soiling losses. These inverters have facilitated greater energy independence, as they allow for modular system expansion and simplified installations. In November 2024, Servotech launched its Microsync series microinverters, STMSI-800 and STMSI-1600, that include automatic power point tracking and patented reverse AC power transmission technology. The microinverters have built-in Wi-Fi connectivity, allowing users to monitor and control energy performance via the Sun Plus IoT app. Servotech has also launched on-grid solar inverters ranging from 1 kW to 100 kW, single-phase and three-phase hybrid inverters, battery storage systems (1.2 kWh to 15 kWh for domestic users and a 5.1 kW model for e-rickshaws) and solar pump controllers.
Manufacturers are focusing on enhancing inverter efficiency and power density. The adoption of gallium nitride and silicon carbide transistors has enabled inverters to achieve efficiency levels above 99 per cent, significantly reducing electricity losses. Over the past decade, power density has increased from 50 Watts per cubic inch to over 500 Watts per cubic inch, reducing the number of inverters required per project and lowering overall system costs. Transformer-less technologies have further optimised efficiency by eliminating bulky components, resulting in lighter and more cost-effective inverters. In addition, hybrid inverter solutions, which incorporate energy storage, are gaining traction as the demand for self-consumption and backup power increases across residential and commercial installations.
Policy developments
The Indian government has introduced several initiatives to improve the performance and standardisation of solar inverters. In March 2024, the Bureau of Energy Efficiency launched the Standards and Labelling Programme for grid-connected solar inverters without storage. Under this, the minimum energy performance standards mandate efficiency levels ranging from 92 per cent for inverters below 1 kW to 98 per cent for inverters above 20 kW. This initiative is expected to lead to energy savings of 21.1 billion kWh between 2024-25 and 2033-34 and a reduction in carbon emissions by an estimated 15.1 million tonnes. Furthermore, these standards ensure a minimum level of reliability and performance, protecting consumers and improving grid stability.
The PM-Surya Ghar: Muft Bijli Yojana, which was launched in June 2024, marked a big step for the residential rooftop solar segment. To enhance consumer confidence, enlisted inverters in the scheme were mandated with meeting energy labelling standards and carrying a product warranty of at least eight years – showing the reliance on high quality, durable inverters to ensure long-term performance, consumer protection and efficient energy generation. The scheme has increased the demand for string inverters, driving manufacturers to scale up production and improve efficiency standards. Additionally, the increased uptake of string inverters has contributed to a more decentralised energy landscape, enabling households to maximise solar self-consumption while reducing their reliance on the grid.
Furthermore, in January 2025, the Ministry of New and Renewable Energy issued the Solar Systems, Devices, and Components Goods Order, 2025, enforcing Bureau of Indian Standards compliance for all solar components, including inverters. Non-compliance will result in penalties under the Bureau of Indian Standards Act, 2016. The standardisation of inverters in this order is expected to improve the overall quality of products in the market and reduce performance variability among different manufacturers.
Challenges and the way forward
The solar inverter industry faces several challenges, including cybersecurity concerns, high heat losses in large solar inverters and grid integration complexities. Furthermore, excessive costs and lack of panel-level monitoring remain key limitations in certain inverter types.
In response to supply chain uncertainties and growing demand, companies are expanding their manufacturing facilities in India. However, reaching cost parity with Chinese inverters remains another significant challenge, necessitating investment in local production capabilities and improved supply chain efficiencies.
Looking ahead, the Indian solar inverter market is poised for continued growth. Ongoing advancements in inverter technology, including higher efficiency, improved durability and smarter capabilities, will make solar power systems more attractive to consumers, further boosting demand. As energy storage becomes more prevalent, the need for inverters capable of handling both solar power and battery storage will rise. The increasing penetration of high-power string inverters will drive down costs while improving energy yields, making solar power more competitive against conventional energy sources. Additionally, modular architectures will likely dominate the market, allowing for greater customisation and flexibility across projects of varying scales.
The expected surge in electric vehicle adoption will also influence inverter technologies, as bidirectional inverters capable of vehicle-to-grid integration gain traction. The evolution of smart inverters with self-learning capabilities, predictive analytics and real-time energy optimisation will further redefine India’s renewable energy landscape. These developments, coupled with continued policy support to ensure quality product development, will cement India’s position as a leader in solar energy adoption.
