Yahoo Finance Enphase's (ENPH) Products Witness Increased Adoption in the UK
Enphase Energy, Inc. ENPH recently announced that its installers are witnessing the wider product adoption of its Enphase Energy System, powered by the 1Q7 family of microinverters, in residential solar energy systems of the United Kingdom.
After establishing a strong position in the domestic market, Enphase has been eyeing opportunities in the international market and expanding its footprint significantly. The recently increased deployments of its products in the United Kingdom bear testimony to Enphase’s effort to expand in the global solar market.
Enphase’s Positioning in the European Solar Market
Enphase has been steadily gaining strength in the international residential solar market, buoyed by the growing demand for a reliable and sustainable energy product worldwide. Enphase derived 35% of its revenues from international businesses in the last reported quarter, with Europe recording an all-time high sell-through of microinverters.
ENPH enjoys a strong customer base in France, the Netherlands, Spain and Portugal for its IQ microinverters. Furthermore, the company recently began shipments of Enphase microinverters from its contract manufacturer Flex in Romania in the first quarter of 2023. This line, with a quarterly capacity of approximately 750,000 microinverters, will enable a global capacity of nearly six million microinverters per quarter, with plans to escalate capacity.
Such capacity maximization will enable Enphase to meet the growing demand in domestic and international markets effectively. It will also help Enphase enhance its customer base and boost its revenue generation prospects.
Peer Moves
Apart from Enphase, solar majors that are aggressively expanding their footprint in the European solar market are as follows:
First Solar FSLR is eyeing growth opportunities outside the United States, mainly in Europe. In May 2023, the company announced that it strengthened its global leadership in thin film photovoltaics by acquiring Evolar AB, a European leader in perovskite technology. Per the agreement, Evolar’s laboratory in Uppsala, Sweden, will continue to conduct research activity, marking the first time First Solar will have an R&D facility in Europe.
The Zacks Consensus Estimate for First Solar’s 2023 earnings has been revised upward by 15.2% in the past 60 days. FSLR shares have recorded a stark improvement of 204.2% in returns in the past year.
Canadian Solar CSIQ caters to a geographically diverse customer base across key markets in Europe. On Feb 15, 2023, Canadian Solar announced that its majority-owned subsidiary, CSI Solar, would launch the EP Cube, its residential all-in-one energy storage solutions in Europe. EP Cube optimizes costs and reduces users' reliance on the electrical grid.
The Zacks Consensus Estimate for Canadian Solar’s 2023 earnings has been revised upward by 6.5% in the past 60 days. CSIQ shares have increased 48.3% in the past year.
Emeren SOL is building independent power producer projects and looking for M&A opportunities across Europe as part of its long-term growth plan. In September 2022, SOL acquired a 50 MWp operational solar farm located in Branston, Lincoln, the United Kingdom from P&T Global Renewable Energy LTD.
The Zacks Consensus Estimate for Emeren’s 2023 sales suggests a growth rate of 85.6% from the prior-year reported figure. Its 2023 earnings estimate has been revised upward by 3% in the past 60 days.
Price Movement
In the past year, shares of Enphase Energy have dropped 3.8% against the industry’s growth of 23.6%.
Image Source: Zacks Investment Research
Zacks Rank
Enphase Energy 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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