Enphase Energy, Inc.
ENPH
recently revealed that Iowa is witnessing the increased adoption of the Enphase Energy System, powered by IQ Microinverters and IQ Batteries, as homeowners look for a reliable and resilient storage solution amid the rising power outages.
Enphase Energy has been rapidly expanding in the United States with its new family of IQ8 microinverters and batteries. Before this development, ENPH recorded the increased deployment of its products in Nevada, implying the increased importance and adoption of the company’s products in the U.S. battery storage market.
Growth Prospects of Enphase Energy in Iowa
Iowa has been witnessing an exponential growth in solar capacity additions. Additionally, several policies favoring the expansion of solar-based energy have been further fueling the growth of the solar market in the region. The increased penetration of the solar market gives a platform for growth to the battery storage market as well.
The region boasts the residential battery capacity in Iowa to expand tenfold by 2026, per the U.S. Energy Storage Monitor report from the Energy Storage Association and Wood Mackenzie.
Considering the growth prospects of the battery storage market in Iowa, the recent increased deployment of Enphase Energy’s products in the region exemplifies the company’s growing customer base, thereby opening avenues for Enphase Energy to further expand and capitalize on the growing market. This, in turn, should boost its revenue generation prospects.
U.S. Solar Market Boom & Peer Moves
The transition to renewable sources of energy is gradually gaining momentum in the United States. Per the latest short-term energy outlook by the U.S. Energy Information Administration (EIA), the addition of utility-scale solar capacity is expected to be 20 GW in 2022 and 24 gigawatt (GW) in 2023. Moreover, the EIA also expects solar additions to constitute approximately half of the new electric generating capacity in 2022.
The abounding growth prospects of the solar energy market embody solid expansion opportunities for battery storage makers like ENPH. Other solar players who stand to benefit and capitalize on the expanding U.S. battery storage market are
SunPower
SPWR
,
SunRun
RUN
and
Canadian Solar
CSIQ
.
In March 2022, SunPower announced that its residential battery storage system, SunVault Storage, with 26-kilowatt hour (kWh) and 52 kWh configurations, is now capable of providing whole-home backup services for customers without sacrificing essentials or comfort during an outage. The installation of the new Sunvault in the United States will begin in June 2022.
The Zacks Consensus Estimate for SunPower’s 2022 earnings suggests growth of a solid 385.7% from the prior-year figure. Shares of SPWR have rallied 7.8% in the past three months.
In May 2021, SunRun announced its partnership with Ford Motor Company to serve as the preferred installer for Ford Intelligent Backup Power, debuting on the all-electric F-150 Lightning. Through this partnership, customers will also be provided with the opportunity to install a solar and battery system in their homes, enabling them to power their households with clean energy.
The Zacks Consensus Estimate for SunRun’s 2022 sales indicates a growth rate of 8.3% from the prior-year reported figure. The Zacks Consensus Estimate for RUN’s 2022 earnings suggests an improvement of 10.3% from the prior-year reported figure.
In April 2022, Canadian Solar sold its Gaskell West 2 and 3 solar-plus-storage projects in California to Matrix Renewables. It has a generation capacity of 105 megawatt-alternate current plus 80 megawatt-hour energy storage.
The Zacks Consensus Estimate for Canadian Solar’s 2022 sales indicates a 37.7% improvement over the prior-year quarter’s reported figure. CSIQ shares have rallied 26.9% in the past three months.
Price Movement
In the past year, shares of Enphase Energy have rallied 35% against the
industry
’s decline of 22.2%.
Image Source: Zacks Investment Research
Zacks Rank
Enphase Energy 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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