Understanding the Role of Battery Storage Inverters in Solar PV Systems and the Growth Drivers of the Industry

Battery storage inverter is an electrical device used for converting direct current (DC) electricity to alternating current (AC) electricity. This unique functionality makes it a pivotal component of energy storage systems. Also, battery inverters are employed to conserve as well as store energy. Battery storage inverters have a wide applicability including domestic applications, industrial applications, electrical vehicles, solar and wind energy systems, and high-voltage DC transmission.
Applicability of battery storage inverter in solar power systems

The emphasis on renewable energy has increased tremendously in the past few years and solar energy has been extensively used to fulfil energy demands. As a result, solar photovoltaic systems are widely being installed in homes, commercial spaces, and industries. Battery storage inverters, being essential components of these systems, are thus hugely in demand for residential, commercial, and industrial applications.  

A battery storage inverter is used in solar photovoltaic systems primarily for conversion of DC to AC power. The photovoltaic cells convert the incident sunlight to electrical energy which is in the form of direct current. The job of the inverter is to make sure that the conversion from DC to AC happens without any energy loss. Thus, efficient battery inverters ensure that energy production is maximized. Also, at the industrial level, maximization of energy output improves the overall grid assistance capabilities. Moreover, battery inverters also enhance optimization of output power tracking capabilities. Depending on the application, different types of solar inverters such as string inverters, central inverters, micro-inverters, off-grid inverters, hybrid solar inverters, etc., are available on the market. 
Factors influencing the market

The rising shift towards solar energy has caused an upsurge in demand for solar photovoltaic systems and battery storage inverters. This might help the battery storage inverter market to expand significantly in the next few years. In fact, a market research report by Allied Market Research highlights this very fact. According to the report, the market might rise at a stunning CAGR of 8.8% in the 2023-2032 period owing to this growth driver. Moreover, the declining cost of batteries and inverters will also help the market to garner substantial revenue in the coming period.

Strategic alliances in the form of acquisitions and mergers are further helping create new investment opportunities in the market. These alliances are creating a competitive atmosphere in the market which in the long run would help in increasing the CAGR of the market. For instance, ENGIE, a French energy company announced the acquisition of Broad Reach Power. Broad Reach Power is a US-based battery storage company and, thus, this acquisition will help the company to expand its operations in the US region. Similarly, Savant Systems acquired POMCube, a solar battery inverter manufacturing company. This acquisition will help Savant Systems to cater to the demands of the industry in a comprehensive way.
The global battery storage inverter market is, to conclude, witnessing huge growth on account of the increasing shift towards solar energy. Moreover, strategic alliances and acquisitions are creating new investment opportunities in the market. 
 

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