Japan Solar Inverter Market

Japan Solar Inverter Market Insights Forecasts to 2035

• The Japan Solar Inverter Market Size Was Estimated at USD 725.2 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 9.1% from 2025 to 2035
• The Japan Solar Inverter Market Size is Expected to Reach USD 1889.6 Million by 2035

According to a research report published by Decision Advisors & Consulting, the Japan solar inverter market size is anticipated to reach USD 1889.6 million by 2035, growing at a CAGR of 9.1% from 2025 to 2035. The solar inverter market in Japan is driven by renewable energy targets, growing residential and commercial solar adoption, government incentives, falling inverter costs, energy storage integration, smart inverter deployment, and Japan's technological leadership.

Market Overview

The brain of a solar system, a solar inverter transforms direct current (DC) energy from solar panels into usable alternating current (AC) electricity for homes, businesses, and the grid. By controlling power flow and maximizing energy capture, it functions as a power translator to run common appliances and lower electricity bills. Japan's government support and incentives have helped contribute to the increase in demand for solar inverters. In Japan, over the next three years, the total solar PV capacity installed in Japan will reach over 100 GW, with more than three million of these systems installed in homes. The Feed-in Tariff (FIT) program provides generous payments of a maximum of 16 JPY/kWh to encourage the use of solar energy. Annual increases of approximately 5,040 MW, along with a supportive policy environment, create favorable conditions for increased demand for solar inverters in both residential and commercial sectors throughout the country.

Opportunities for continued growth exist in the retrofitting of existing older structures to meet the need for residential and commercial solar systems as well as by developing new business opportunities related to the cutting-edge technologies that are being developed by Japan’s leaders in renewable energy technology. Examples of the continued advancement of the Japanese solar inverter and energy storage market include the exponential growth in installations of smart solar inverters throughout Japan all demonstrate the substantial potential of this rapidly growing sector of the Japanese economy.

Report Coverage

This research report categorizes the market for the Japan solar inverter market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan solar inverter market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan solar inverter market.

Driving Factors

The solar inverter market in Japan is driven by the developmental and carbon reduction goals of Japan's national government. Incentives from the government including Feed-in Tariffs, and requirements for rooftops to have solar systems, have created a high demand for inverters at all three levels residential, commercial and utility. Advances in inverter technology, such as smart and hybrid inverters, integration with energy storage, and advances in efficiency are enabling stronger self consumption and grid stability. Lowing of inverter pricing, commercial commitments to sustainability, the retrofitting of existing older buildings with solar systems, and Japan's position as a leader in technology is further driving growth in this category.

Restraining Factors

The solar inverter market in Japan is mostly constrained by high upfront expenses to install an inverter, grid connectedness challenges, and restrictions of space on residential rooftops. Additionally, complicated regulatory requirements, and competition from alternatives can limit inverter penetration, as well as fluctuations in government support and reliance on imports.

Market Segmentation

The Japan solar inverter market share is classified into inverter type and application.

• The string inverters segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Japan solar inverter market is segmented by inverter type into central inverters, string inverters, and micro inverters. Among these, the string inverters segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to the fact that string inverters are inexpensive, quite effective for small-to-medium-sized business and residential installations, and simple to set up and maintain. They are the favored option over central and microinverters due to their compatibility with rooftop solar systems in Japan, flexibility in modular installations, and capacity to allow monitoring and smart-grid integration.

• The residential segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Japan solar inverter market is segmented by application into residential, commercial and industrial (C&I), and utility-scale. Among these, the residential segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is because rooftop solar systems are becoming more and more common in households, government incentives like the Feed-in Tariff (FiT), falling installation costs, and rising consumer awareness of renewable energy. Compared to commercial or utility-scale installations, residential systems benefit from compact, effective string and microinverters that are appropriate for small rooftop spaces, resulting in increased revenue and consistent growth.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan solar inverter market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• TMEIC (Toshiba?Mitsubishi?Electric Industrial Systems)  
• Fuji Electric Co., Ltd.
• Sharp Corporation          
• Hitachi Power Solutions Co., Ltd.
• Kyocera Corporation      
• Panasonic Energy Co.    
• Omron Corporation        
• Tabuchi Electric Co., Ltd.              
• YASKAWA Electric Corporation  
• Sanyo Denki Co., Ltd.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments:

• In April 2024, New regulations for connecting to the grid have come into effect. All new NP three-phase PV inverters must now support the frequency feedback method using the step injection method (STEP3.2) for low voltage connections. This will force inverter manufacturers to develop more advanced compliant products.
• In March 2024, Sungrow Power Supply Co., Ltd. announced several renewable energy products designed specifically for Japanese markets, including string inverters and modular inverter/energy storage systems that meet the specific needs of residential, commercial, and industrial users, as well as utility scale installers.

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Decision Advisors has segmented the Japan solar inverter market based on the below-mentioned segments:

Japan Solar Inverter Market, By Inverter Type

• Central Inverters
• String Inverters
• Micro Inverters

Japan Solar Inverter Market, By Application

• Residential
• Commercial and Industrial (C&I)
• Utility-Scale

FAQ’s

Q: What is the Japan solar inverter market size?

A: Japan solar inverter market size is expected to grow from USD 725.2 million in 2024 to USD 1889.6 million by 2035, growing at a CAGR of 9.1% during the forecast period 2025-2035. 

Q: What are the key growth drivers of the market?

A: Market growth is driven by the developmental and carbon reduction goals of Japan's national government. Incentives from the government including Feed-in Tariffs, and requirements for rooftops to have solar systems, have created a high demand for inverters at all three levels residential, commercial and utility. Advances in inverter technology, such as smart and hybrid inverters, integration with energy storage, and advances in efficiency are enabling stronger self consumption and grid stability.

Q: What factors restrain the Japan solar inverter market?

A: Constraints include by high upfront expenses to install an inverter, grid connectedness challenges, and restrictions of space on residential rooftops. Additionally, complicated regulatory requirements, and competition from alternatives can limit inverter penetration, as well as fluctuations in government support and reliance on imports.

Q: How is the market segmented by inverter type?

A: The market is segmented into central inverters, string inverters, and micro inverters.

Q: Who are the key players in the Japan solar inverter market?

A: Key companies include TMEIC (Toshiba?Mitsubishi?Electric Industrial Systems), Fuji Electric Co., Ltd., Sharp Corporation, Hitachi Power Solutions Co., Ltd., Kyocera Corporation, Panasonic Energy Co., Omron Corporation, Tabuchi Electric Co., Ltd., YASKAWA Electric Corporation, Sanyo Denki Co., Ltd., and Others.

Q: Who are the target audiences for this market report?

A: The report targets market players, investors, end-users, government authorities, consulting and research firms, venture capitalists, and value-added resellers (VARs).