Global solar power optimiser shipments grew 13% in 2023 to reach a record high of 18 GW, according to S&P Global Insights report (2024).
The power optimiser market size is expected to see rapid growth in the next few years driven by an increasing global demand for renewable energy sources both in the residential and C&I sectors. Major trends include technological advancements, rising investments, and product innovations.
Optimisers play an important role in maximising energy production and optimising the performance of individual solar panels in a solar photovoltaic PV system.
They are great for those seeking high efficiency, in less-than-ideal conditions such as partially shaded solar systems, panel degradation, module mismatch, and panel soiling, and installations with multiple orientations to the sun.
DC power optimisers work in conjunction with a central string inverter. These small smart devices are attached to the back of each individual solar panel in a system, and they work like mini power stations, optimising DC electricity from each panel before it gets converted to AC electricity.
Their primary role is to maximise the energy output from each individual panel, thereby optimising the overall system performance.
Power optimisers achieve this by continuously tracking the maximum power point (MPP) of each panel. MPP can vary because of factors like temperature and shading – but the optimiser constantly adjusts the voltage and current of its respective solar panel to keep it operating at this maximum power point.
This optimisation ensures that, even if some panels are underperforming because of external factors, the rest of the panels in the array aren’t negatively affected and can continue to generate electricity at their peak efficiency.
In contrast, in systems without optimisation, the whole string of solar panels is impacted if one module is shaded.
There are several advantages and disadvantages of power optimisers to be considered.
Optimisers are very efficient in partially shaded conditions or if you have multiple roof orientations. They are brilliant for customers seeking high efficiency. However, costs and potentially more complex installation/retrofitting can be considerable.
One of the most significant benefits of using power optimisers is their ability to boost energy production.
The flexibility in design and layout they offer can significantly improve the amount of energy produced by panels. They offer installers the freedom to deploy systems in the most challenging of rooftop sites. Optimisers are useful in residential applications if customers have an East/West facing roof. Similarly they are benefial if the interconnection point is further away from the solar array.
Boosting energy production renders higher energy savings for the customer as well as contributes to a quicker payback period for a solar installation.
Using an optimiser ensures that each panel continues to operate to the potential of the maximum power point. An optimiser ensures that the system works efficiently, allowing customers to reclaim the energy that would have otherwise been lost.
A string of solar panels in an array without power optimisers can suffer low power output when panels are shaded by chimneys, debris, aerials, and trees. Panels' peak performances also depend on the level of cloud coverage's thickness. According to the US National Renewable Energy Laboratory (NREL), “Partial shading can lead to annual performance losses of 10%–20% or more in residential installations.” Also, according to NREL, “Module level power electronics such as microinverters or DC power optimizers have been shown to reduce mismatch in systems, recovering 30%–40% of the power lost due to partial shading.”
Optimisers can be installed only on panels that are shaded.
Optimisers can minimise the impact of panel mismatch, which is a common issue in solar installations. Like with shading, they ensure the overall system performance is not dragged down by less efficient panels.
Having optimisers fitted to a PV array allows more panels to be included in the system going through a single inverter. This simplifies the string array and enables oversizing (double the inverter power). Longer strings reduce cable and installation costs.
Batteries charge and discharge DC electricity, therefore optimisers will easily integrate with them. They are well-suited for home energy storage systems, because the DC coming from panels can be routed efficiently to a DC battery without any conversion to AC and back to DC again.
Optimisers conform to international safety standards to protect the integrity of property and people. They incorporate features such as:
-- RSD (Rapid Shut Down) which gives installers, maintenance teams, and firefighters peace of mind should they need to work close to the panels.
In 2023, Huawei released a white paper with certification agency TÜV Rheinland describing a field test on safety of their optimisers. The result showed that when disconnecting the DC and AC switch, the MPPT inverter voltage had dropped to 0 V, in 25 seconds (DC) and 11 seconds (AC) after disconnecting the DC and AC switch, due to the Huawei optimiser.
-- Arc Fault Circuit Interruption which gives the ability to detect and interrupt series arcs within the direct current (DC) side of a solar system.
Power optimisers can provide real-time module-level monitoring of panels’ performance. This allows for early detection of any potential issues, thus preventing system failures and ensuring the longevity of the solar system.
DC optimisers track each solar module’s peak output and regulate voltage before the power goes to a central inverter. They will also help to improve the safety of solar panels.
Finally, the data collected by the power optimisers can be easily viewed via mobile apps and web portals provided by manufacturers. Huawei’s FusionSolar App, for instance, allows performance tracking of the entire solar installation remotely.
Nowadays optimisers come with a 25-year warranty, whereas string inverters come with a shorter 10-12 years’ coverage.
The addition of power optimisers can increase the initial investment required for a solar system.
While the power boost gain achieved could easily make it well worth in the long run, initially it might prevent individuals/businesses with small budgets from investing in power optimisers.
In installations, where panels are not subjected to shading or other performance limiting factors, the benefits of power optimisers may not justify their costs.
The installation of power optimisers requires additional wiring and other components, which can increase the chances of system failures.
The amount of time it takes to complete an installation can also increase. Furthermore, skilled installers may be needed for retrofitting and/or upgrading existing solar arrays.
Solar panel optimisers are designed to be low maintenance, much like solar panels. So once installed, they work quietly in the background to optimise energy production but there is always a risk of failures.
This is where a monitoring feature is important as it allows the installer to track the performance of individual panels, so if an optimiser isn’t working correctly, he’ll be able to spot it quickly.
It’s also crucial to ensure that optimisers are compatible with both panels and inverters. As a result, it’s advisable to avoid manufacturers mismatch.
According to S&P (Standard & Poor) Global Insights report (2024), global microinverter and power optimiser shipments grew 19% in 2023 to reach a record high of 26 GW; with a 13% growth for Power Optimisers alone. Europe is a major player, accounting for 61% of the shipments in 2023.
The increasing global demand for renewable energy sources, particularly solar power, is a primary driver of the power optimiser market.
Other factors such as decline of cost of solar panels and related components, and technological advancements are also important. As overall solar installation costs decrease, there's a greater willingness among residential, and commercial and industrial (C&I) customers alike to invest in technologies like power optimisers to maximise returns on solar investments.
Manufacturing competitiveness is growing with companies such as Tigo Energy, Huawei Technologies and Sungrow Power Supply.
But there are still market challenges such as installation costs for residential and small-scale commercial applications, lack of awareness about the benefits of power optimisers, the lack of universally accepted technical standards to improve components compatibility in installations, and the need for skilled installers for retrofitting/upgrading existing solar arrays.
Finally, in terms of trends, further growth of the solar energy sector is expected. Stringent regulations and environmental policies worldwide will help with the adoption of solar technologies, including power optimisers. The integration of power optimisers with energy storage systems will become more common, contributing to the stability and reliability of renewable energy systems.
Power optimisers offer numerous benefits in residential and C&I installations, from increasing energy production to improving system safety.
However, they also come with increased complexity, costs, and longer installation times. Therefore, the decision to invest in power optimisers should be based on specific needs and conditions of the solar project in question.
There’s an upfront cost, but the boost in energy production could easily make it well worth the investment, as improved efficiency often means quicker payback time.