US Grid Forming Inverters for Microgrids Market

The US Grid Forming Inverters For Microgrids Market is currently experiencing a notable transformation, driven by the increasing demand for reliable and resilient energy systems. As the nation seeks to enhance energy independence and reduce reliance on traditional power sources, grid forming inverters are emerging as a pivotal technology. These devices facilitate the integration of renewable energy sources into microgrids, enabling them to operate autonomously and maintain stability even during disturbances. The growing emphasis on sustainability and the transition towards cleaner energy solutions further propels the adoption of these inverters, as they play a crucial role in managing distributed energy resources effectively. Moreover, the regulatory landscape in the United States is evolving to support the deployment of microgrid technologies. Federal and state initiatives are increasingly promoting the use of grid forming inverters as part of broader energy policies aimed at enhancing grid resilience and reducing greenhouse gas emissions. This shift is likely to encourage investments in microgrid projects across various sectors, including residential, commercial, and industrial applications. As stakeholders recognize the potential benefits of grid forming inverters, the market is poised for substantial growth, reflecting a broader trend towards decentralized energy systems that prioritize sustainability and reliability.

Increased Adoption of Renewable Energy Sources

The US Grid Forming Inverters For Microgrids Market is witnessing a surge in the integration of renewable energy sources. This trend is largely driven by the need for cleaner energy solutions and the desire to reduce carbon footprints. As more states implement policies favoring renewable energy, grid forming inverters are becoming essential for managing the variability of these resources, ensuring stable and reliable microgrid operations.

Regulatory Support and Incentives

Government initiatives at both federal and state levels are increasingly supporting the deployment of grid forming inverters. Various programs and incentives are being introduced to encourage investments in microgrid technologies. This regulatory backing is likely to enhance the market's growth, as stakeholders seek to align with sustainability goals and benefit from available financial support.

Technological Advancements in Inverter Design

Innovations in inverter technology are significantly impacting the US Grid Forming Inverters For Microgrids Market. Enhanced features such as improved efficiency, advanced control algorithms, and better integration capabilities with energy storage systems are emerging. These advancements not only improve the performance of microgrids but also make them more attractive to potential investors and users.

The US Grid Forming Inverters For Microgrids Market benefits from a supportive regulatory framework that encourages the development and deployment of microgrid technologies. Federal and state policies, including tax incentives and grants, are designed to promote energy independence and sustainability. For instance, the Federal Energy Regulatory Commission has implemented policies that facilitate the interconnection of microgrids to the main grid, enhancing their viability. Additionally, various states have established renewable portfolio standards that mandate a certain percentage of energy to come from renewable sources. This regulatory support is likely to stimulate investment in grid forming inverters, as stakeholders seek to comply with evolving energy policies and capitalize on available incentives.

The US Grid Forming Inverters For Microgrids Market is experiencing a notable surge in demand for energy resilience. As natural disasters and extreme weather events become more frequent, communities are increasingly seeking reliable energy solutions. Microgrids, powered by grid forming inverters, provide localized energy generation and storage, ensuring that critical infrastructure remains operational during outages. According to the US Department of Energy, investments in microgrid technology are projected to reach $1.5 billion by 2026, indicating a robust market potential. This growing emphasis on energy resilience is likely to drive the adoption of grid forming inverters, as they enable seamless integration of renewable energy sources and enhance the overall reliability of the power supply.

The US Grid Forming Inverters For Microgrids Market is significantly influenced by the increasing integration of renewable energy sources. With the US government setting ambitious targets for renewable energy generation, the demand for grid forming inverters is expected to rise. These inverters facilitate the incorporation of solar, wind, and other renewable sources into microgrid systems, allowing for a more sustainable energy mix. The US Energy Information Administration reports that renewable energy accounted for approximately 20% of total electricity generation in 2025, a figure that is anticipated to grow. This trend underscores the importance of grid forming inverters in supporting the transition to a cleaner energy future, thereby propelling market growth.

The US Grid Forming Inverters For Microgrids Market is witnessing a rising interest in community microgrids, which are designed to serve local populations and enhance energy security. These microgrids often utilize grid forming inverters to manage distributed energy resources effectively. Community microgrids can operate independently or in conjunction with the main grid, providing flexibility and resilience. According to the National Renewable Energy Laboratory, there are over 200 community microgrid projects in various stages of development across the US. This trend reflects a growing recognition of the benefits of localized energy solutions, which is likely to drive the demand for grid forming inverters as communities seek to establish their own energy independence.

The US Grid Forming Inverters For Microgrids Market is poised for growth due to technological innovations in energy storage solutions. Advances in battery technology, such as lithium-ion and flow batteries, are enhancing the efficiency and reliability of microgrid systems. These innovations allow for better energy management and storage capabilities, which are essential for the effective operation of grid forming inverters. The US Department of Energy has reported a significant decrease in battery costs, making energy storage more accessible for microgrid applications. As energy storage becomes more affordable and efficient, the demand for grid forming inverters is likely to increase, as they play a crucial role in optimizing the performance of these systems.

Based on country, the US Grid-Forming Inverters for Microgrids Market is segmented into Northeast US, Southeast US, Midwest US, Southwest US, West US. The West US segment dominated the US market in 2024, while the West US segment is projected to be the fastest–growing segment during the forecast period. The Western U.S. is a leading part of the country for microgrid deployment, driven by its extensive renewable energy capacity, vulnerability to wildfires, and increasing need for energy resilience. 

California, Oregon, and Washington are at the forefront, integrating grid-forming inverters to support decentralized energy systems, stabilize voltage and frequency, and ensure grid reliability during disruptions. The demand for microgrids is growing, particularly for critical infrastructure, remote communities, and industrial facilities requiring stable, off-grid power solutions. For instance, in December 2024, the California Energy Commission (CEC) approved over USD 100 million in funding for microgrid projects that enhance community resilience in wildfire-prone areas. These projects focus on deploying solar-plus-storage systems with advanced grid-forming inverters, allowing seamless islanding and reconnection to the grid.

FIGURE 2: US GRID-FORMING INVERTERS FOR MICROGRIDS MARKET SHARE BY REGION 2024 AND 2035 (USD MILLION)

The Grid Forming Inverters For Microgrids Market is currently characterized by a dynamic competitive landscape, driven by the increasing demand for decentralized energy solutions and the integration of renewable energy sources. Key players such as General Electric (US), Siemens (US), and Schneider Electric (US) are actively positioning themselves through innovation and strategic partnerships. General Electric (US) has focused on enhancing its technological capabilities, particularly in energy management systems, which complements its inverter offerings. Siemens (US) emphasizes digital transformation, leveraging IoT technologies to optimize microgrid operations, while Schneider Electric (US) is pursuing regional expansion, particularly in underserved markets, to capture emerging opportunities. Collectively, these strategies contribute to a competitive environment that is increasingly focused on technological advancement and market responsiveness.

In terms of business tactics, companies are localizing manufacturing to reduce supply chain vulnerabilities and enhance responsiveness to market demands. The market structure appears moderately fragmented, with several key players exerting influence while also allowing for niche entrants. This fragmentation fosters innovation, as companies strive to differentiate their offerings in a competitive landscape.

In December 2025, General Electric (US) announced a partnership with a leading renewable energy firm to develop integrated microgrid solutions that utilize advanced grid forming inverter technology. This collaboration is expected to enhance the efficiency and reliability of energy distribution in remote areas, thereby solidifying General Electric's position as a leader in the sector. The strategic importance of this partnership lies in its potential to address the growing need for sustainable energy solutions in off-grid applications.

In November 2025, Siemens (US) launched a new line of grid forming inverters designed specifically for urban microgrids, which are increasingly being adopted in smart city initiatives. This product line aims to facilitate the integration of diverse energy sources, including solar and wind, into urban infrastructures. The launch signifies Siemens' commitment to innovation and its strategic focus on urbanization trends, which are reshaping energy consumption patterns.

In October 2025, Schneider Electric (US) expanded its operations in Latin America by establishing a manufacturing facility dedicated to grid forming inverters. This move is anticipated to enhance local production capabilities and reduce lead times for customers in the region. The strategic significance of this expansion is underscored by Schneider Electric's aim to strengthen its market presence in a rapidly growing segment, thereby positioning itself favorably against competitors.

As of January 2026, current competitive trends in the Grid Forming Inverters For Microgrids Market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, as companies recognize the value of collaboration in driving innovation. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on technological innovation, reliability of supply chains, and the ability to deliver sustainable solutions. This shift indicates a transformative phase in the market, where companies that prioritize innovation and adaptability may emerge as leaders.