Yahoo Finance SolarEdge (SEDG) Commences Shipping of New Battery Cells
SolarEdge Technologies, Inc. SEDG revealed that its Energy Storage division commenced the shipment of its new battery cells designed for Energy Storage applications.
The cells are being manufactured at the company’s new battery cell manufacturing unit in South Korea, Sella 2. In this context, it is imperative to mention that the Sella 2 facility has been specifically developed by SolarEdge to spur its manufacturing capacity of lithium-ion batteries, strengthening its position in the battery cell manufacturing space.
SolarEdge’s Growth Prospects
SolarEdge expects the stationary storage market to grow from approximately 45 gigawatt-hour (GWh) in 2022 to 164 GWh by 2030. In such a scenario, SolarEdge strives to gain from the flourishing battery storage market by boosting its product portfolio and meeting the escalating demand.
The recently established Sella 2 factory by the company has not only boosted its production capacity but also assisted the company in meeting the supply-chain challenges. Prior to Sella 2, SolarEdgereached full capacity in its manufacturing facility in Israel, Sella 1, in the second quarter of 2021. Along with this, the company boosted its manufacturing capacity in Vietnam.
Such developments will not only provide a competitive edge to the company but will also allow SolarEdge to meet the growing demand for solar products globally.
Global Battery Storage Boom
With the increased adoption of renewables for energy needs, the demand for grid-scale and residential energy storage is likely to surge.
Per the report from Fortune Business Insights, the global battery storage market is anticipated to witness a CAGR of 16.3% during 2022-2029.
Such growth projections should benefit solar companies like SolarEdge and other prominent solar players like Enphase Energy ENPH, SunPower SPWR and SunRun RUN, which have carved out impressive positions in the battery storage market.
Enphase produces a fully integrated solar-plus-storage solution. Its IQ battery storage systems, which come with the usable and scalable capacity of 10.1-kilowatt hour (kWh) and 3.4 kWh, are based on Ensemble OS energy management technology, which powers the world’s first grid-independent microinverter-based storage system for customers.
The long-term earnings growth rate of Enphase is pegged at 45%. Shares of ENPH have rallied 84.7% in the past year.
SunPower’s residential battery storage system, SunVault Storage, comes with 26 kWh and 52 kWh configurations. It can provide whole-home backup services for customers without sacrificing essentials or comfort during an outage.
SunPower boasts a long-term earnings growth rate of 45.1%. Its shares have gained 12.7% in the past six months.
SunRun’s Bright Box provides uninterrupted backup power for the entire home. It also excels in providing electricity during peak demand times, buffering customers from high rates.
The Zacks Consensus Estimate for SunRun’s 2022 sales indicates a growth rate of 42.5% from the prior-year reported figure. RUN shares have risen 2.1% in the past year.
Price Movement
In the past year, shares of SolarEdge have gained 34.1% compared with the industry’s 49.6% growth.
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Zacks Rank
SolarEdge currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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