Enphase forecasts revenue below estimates as inverter market stays under pressure

April 23 (Reuters) - Solar inverter maker Enphase Energy projected second-quarter revenue below analysts' estimates on Tuesday, in a sign of sluggish recovery in demand across its markets.

The Fremont, California-based company forecast revenue in the range of $290 million to $330 million for the quarter ending June, compared with analysts' average estimate of $348.6 million, according to LSEG data.

Rising inventory levels in Europe and a metering reform in top U.S. market California have dented demand for Enphase's inverters used in residential solar units.

The metering reform has lowered credit that households with rooftop solar panels received for transferring excess power to the grid.

Elevated interest rates, which have raised the payback period for investment in solar, are also hurting demand.

Enphase said in February it expects inventory levels to normalize and demand for its products to pick up by the end of the second quarter.

Microinverter shipments fell 71% to about 1.38 million in the first quarter from a year earlier.

Revenue of $263.3 million missed analysts' average estimate of $279.8 million.

The company had cut its workforce by 10% last year and reduced its manufacturing capacity to clear its excess inventory.

(Reporting by Sourasis Bose and Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila and Shilpi Majumdar)