In addition, says the report, growing environmental awareness across Europe has given a boost to small-scale renewable installations, in turn adding to inverter sales.
New analysis from Frost & Sullivan, Analysis of the European Inverter Market for Renewable Energy Systems, finds that the market earned revenues of more than €3.58 billion in 2012 and estimates this to reach €5.24 billion in 2018.
“The European Union’s measures to address the dependence on fossil fuel imports will spur the need for renewable inverters in the region,” said Frost & Sullivan Energy and Environmental Research Analyst Gautham Gnanajothi. “Emphasis on climate change and reducing carbon emissions drives the acceptance of cleaner and greener energy sources, and aids inverter market growth.”
Improved grid access, simplified administrative procedures, and developing infrastructural prerequisites for new projects will expand the market. The high cost of electricity generated by centralised plants will lead to the adoption of the more economical distributed generation system, which will further accelerate demand for renewable inverters.
However, the cost of renewable installations and the prices of semiconductor materials used in solar panels still remain high. This coupled with the lack of immediate returns can restrain uptake.
The inconsistent implementation of government incentive schemes contributes to the challenge, and growth in key markets such as Germany and Italy is expected to decline. Nevertheless, emerging countries such as Belgium, Slovakia, Greece, Czech Republic and Bulgaria offer substantial opportunities.
“In addition, several inverter manufacturers in Europe are looking to include micro inverters in their product portfolio to widen their scope,” noted Gnanajothi. “The market will also witness consolidation; with notable acquisitions and mergers expected in the future.”