Summary: The Growing Microinverter Tax

The AC vs. DC debate (Alternating Current vs. Direct Current) is not new, it first played out during the birth of the electrical grid. Today, it’s back with a solar twist: AC architecture (microinverters + AC-coupled energy storage) vs. DC architecture (DC optimizers + DC-coupled energy storage).

Microinverters are a common component of AC architecture-based systems and have seen widespread success in the residential solar market. Their mix of features and ease of installation have contributed to the rapid adoption of solar in homes across the world. But three key trends (detailed in Chapter 2) are reshaping the preferred residential solar technology stack:

• Increasing module wattage
• Growing battery adoption
• Rising utility rates

Combined, these trends lead to what we call the Microinverter Tax—a series of hidden costs that eat into solar savings. In Chapters 3-5, we breakdown the 3 separate taxes that make up the Microinverter Tax, including:

• Clipping Tax: leaving energy on the table - can cost $10,724 over a system’s lifetime
• Conversion Tax: the hidden cost of AC-coupled batteries - can cost $2,654 in lost energy benefits compared to using DC-coupled batteries
• Equipment Tax: more gear, more problems – how systems built around AC architecture require additional equipment  

When combined, the Microinverter Tax can add up to more than $13,378 in lost production value on a 15kW residential solar + storage installation, in addition to requiring more equipment.

The last chapter of this book is dedicated to a solution to avoid these taxes: a system based on DC architecture, which pairs DC optimizers and DC-coupled energy storage. We will show how DC architecture helps installers, and their system owners capture as many watt-hours as possible, minimize losses, and simplify their residential solar installations, all of which pay dividends for years to come. But first, let us focus on the trends that got us here.

Proceed to CHAPTER 2 | Trendlines: Major Changes in the Solar Industry

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Want more?

Webinar: On April 15 (Tax day in the US), we're hosting a webinar that will dive into the details of the Microinverter Tax series. Sign up for the webinar here.

Below is a full list of chapters included in this series (links will be added as chapters are published):

1. Summary: The Growing Microinverter Tax (this blog)
2. Trendlines: Major Changes in the Solar Industry
3. Clipping Tax: Leaving energy on the table
4. Conversion Tax: The hidden cost of AC-coupled batteries
5. Equipment Tax: More gear, more problems
6. The solution is DC: DC optimizers, DC coupled batteries
7. Bonus: Clipping showdown: MLPE vs. Optimizers
8. Glossary of terms

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