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Oct 28, 2024

Hybrid Inverter Makers Expect Good Days Ahead In India

After the Ministry of New and Renewable Energy (MNRE) clarified the eligibility of hybrid inverters under the PM Surya Ghar scheme, solar inverter manufacturers in India are anticipating increased

After the Ministry of New and Renewable Energy (MNRE) clarified the eligibility of hybrid inverters under the PM Surya Ghar scheme, solar inverter manufacturers in India are anticipating increased demand within the residential rooftop segment.

Hybrid inverters, traditionally used in remote or weak-grid areas, allow consumers to maximize on-site solar power utilization. By utilizing energy storage devices, hybrid inverters store surplus solar energy for use during nighttime or grid outages.

Until MNRE’s notification, the sector was engulfed in confusion over the role of hybrid inverters in residential rooftops. “Earlier, there was significant confusion among rooftop solar consumers regarding hybrid inverters. Some states permitted hybrid inverters under PM Surya Ghar, while others did not. Our industry sought clarity from the MNRE, and now, with the government’s support, we foresee a demand surge for hybrid inverters under this scheme,” said PK Jain, Business Head (Solar) at Microtek, to Saur Energy.

Microtek is now prepared with its line of hybrid inverters to meet this anticipated demand. Similarly, SOFAR Solar, another key inverter maker in India, noted a 15% price increase in on-grid solar inverters following the PM Surya Ghar launch. SOFAR’s Country Head, Sunil Tiku, stated that further clarification on subsidies for these inverters could accelerate growth in this segment. He also highlighted that the decreasing cost of lithium could help alleviate price pressures.

“The inclusion of hybrid inverters in a subsidized scheme could significantly boost the market. Lower lithium prices globally have reduced production costs for battery storage devices,” Tiku shared with Saur Energy. SOFAR currently offers standalone hybrid inverters, standalone BESS, and integrated hybrid inverter-BESS solutions.

Solax Power, showcasing its hybrid inverters and BESS at the recent REI expo, credited the PM Surya Ghar scheme for revitalizing the residential segment. According to Solax’s Country Director for India, Vipion Bharadwaj, the scheme has driven demand across the inverter market. “With increased subsidies and government support, demand for solar systems and inverters has multiplied. We expect around 10 GW of annual solar capacity additions, which will likely boost inverter sales,” he said.

Solis, another prominent player in India’s solar inverter market, reported selling approximately 150,000 units since the scheme’s announcement. Honey Raza, Solis’s Director of Sales, remarked, “Following the scheme’s announcement, we’ve seen a surge in demand. The qualification clarity on solar inverters under PM Surya Ghar positions us well to meet this demand, especially for Tier I cities and remote areas.”

Speaking on the broader benefits for solar consumers, Bharat Deye, Director of Sales, Marketing, and Operations (India & MENA), told Saur Energy, “The future of solar projects lies in storage. As a pioneer in hybrid inverters, we are well-positioned to meet the growing demand in India. With greater adoption, grid quality is set to improve, allowing consumers to benefit from selling solar power at higher tariffs.”

While hybrid inverters were used in many remote areas and other regions to maximize the real usage of solar power on-site, the lack of clarity on the applicability of subsidies had limited its growth. Now with an ambitious target of new residential rooftop solar target for 1 crore households is likely to scale up the installation of inverters.

The announcement of its inclusion has tried to allay the fears of a number of EPC players, consumers, and even solar inverter players. With the passage of time, we can now expect a transition in the choices of consumers when it comes to solar inverters. With the inherent benefits of these inverters, the Indian solar market can now expect a new trend of increased adoption of this segment. A number of solar inverter brands told Saur Energy that they have planned to work more towards Research and Development (R&D), design and bringing new integrated BESS with these inverters.