Yahoo Finance SolarEdge (SEDG) Launches Inverter & Battery Solution in Europe
SolarEdge Technologies Inc. SEDG has launched its state-of-the-art, three-phase solar inverter and home battery solution at the recently held Intersolar exhibition in Munich. This solution, expected to be available in Europe’s residential solar market in the second half of next year, should expand SEDG’s footprint in the booming solar industry of Europe.
Benefits of the Launch
With a greater power class of up to 20 kilowatts (kW), SolarEdge's next-generation inverter is designed for full home backup applications. Thanks to the latest advancements in Silicon Carbide (SiC) switches, it is expected that the new inverter will be significantly lighter and smaller per kW. It will also boost power density and efficiency to attain the highest efficiency in its category at this time.
With the help of three-phase solar inverters and home battery solutions from SolarEdge, consumers can improve energy independence, optimize energy efficiency and lower their electricity costs while promoting environmental sustainability. As the demand for a cost-efficient as well as technologically upgraded battery system is increasing among consumers in the residential solar energy market, the latest launch can be expected to boost the order flow for this solar-plus-storage solution of the company.
Prospects of the Solar Plus Storage Market
With solar energy having emerged as one of the key forerunners when it comes to the adoption of clean energy, many governments across the globe are offering lucrative incentives for consumer adoption of batteries to accelerate the smooth integration of large amounts of solar into power grids. This, along with the fact that energy storage helps smoothen major fluctuations in electricity demand between day and night, has been boosting the demand for solar energy systems that come with batteries attached to them.
The RationalStat’s firm estimates the Global Solar Energy and Battery Storage market to witness a CAGR of 7.8% during the 2023-2030 period. Hence, to reap the benefits of this expanding market, SolarEdge is steadily enhancing its footprint in this space. The latest launch is a bright example of that.
Moreover, in February 2024, the company installed its new high-power Direct Current-optimized 330 kW inverter system in California. This inverter system can efficiently manage and distribute electrical power over long distances and reduce the Balance of System costs.
Peers to Benefit
Other solar players in the industry that are undertaking expansion strategies to meet the growing demand of the solar plus storage market are as follows:
Enphase Energy ENPH: Its third-generation Enphase Energy System comes with its most powerful home battery solution, IQ Battery 5P, which, along with its IQ8 microinverters, can supply dependable electricity to residential customers whenever needed. In June 2024, Enphase launched its IQ Battery 5P in Canada.
ENPH’s long-term (three to five years) earnings growth rate is 17%. Its share price has rallied 3.1% in the past three months.
Canadian Solar CSIQ: Its product portfolio includes a variety of inverters, such as the 350 kW three-phase utility string inverter, commercial three-phase string inverters and single-phase string inverters. Meanwhile, its SolBank is a proprietary battery energy storage solution designed and manufactured for utility-scale applications.
CSIQ’s long-term (three to five years) earnings growth rate is 25%. The Zacks Consensus Estimate for 2024 sales implies an improvement of 2.5% from the prior-year figure.
SunPower Corp. SPWR: It is a prominent provider of battery storage systems, with its portfolio containing SunVault Storage, which comes with 26 kWh and 52 kWh configurations. Its Equinox home solar system generates more power in less space with fewer visible parts for a minimalist design. Its SunVault storage system can be paired perfectly with its Equinox system using excess energy generated during the day to power essential appliances of a home during an outage and reduce peak-time electricity charges.
The Zacks Consensus Estimate for SPWR’s 2024 bottom line, pegged at a loss of 61 cents, suggests a solid improvement from the prior-year quarter’s loss of 91 cents. Its shares have fallen 1.1% in the past three months.
Price Movement
In the past three months, shares of SEDG have declined 47% against the industry’s average growth of 9.3%.
Image Source: Zacks Investment Research
Zacks Rank
SolarEdge Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
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