Enphase Energy, Inc.
ENPH
recently revealed that the company is witnessing the increased deployment of the Enphase Energy System, powered by IQ Microinverters and IQ Batteries, in Germany, buoyed by the growing demand for a reliable energy storage solution in the nation.
This highlights the increased adaptability of Enphase’s products in Germany after its launch of the IQ Battery in June 2021.
Enphase Energy’s Growth Strategy in Germany
Germany marks Enphase’s first region to expand its footprint internationally as ENPH aims to capitalize on the growing demand in the region. To this end, Germany turned out to be Europe’s major solar market in 2021, with 5.3 gigawatts of newly installed capacity.
The recent expansion in Germany’s market entails the capability of its product to fulfill the requirement of a clean, safe and sustainable energy.
Since the launch of its products in Germany’s market, Enphase has been strategically growing its business in the region. In this context, to further expand its business in the German solar landscape, Enphase announced to support third-party inverters in Germany, thus assisting in meeting installer and homeowner needs for a safe and reliable energy solution.
Moreover, the company intends to further accelerate its pace of expansion in the region through agreements with several installation partners. To this end, it is imperative to mention that Enphase signed an agreement with the German climate tech start-up 1KOMMA5, which would assist the company in scaling up its business in the region while providing energy-trading aids for Enphase’s customers through 1KOMMA5 virtual power plant applications.
Europe’s Solar Market Boom
Europe’s solar market is poised to grow, mainly amid rising energy prices in the region and various government policies in support of the development of solar projects. Per the report from Solar Power Europe, the European Union may witness growth of 18%-20% during the 2022-2025 period.
The expanding market size of Europe’s solar market exemplifies sizeable opportunities for ENPH and many solar playersin the industry to enjoy the perks of growth trends. In this context, solar majors that have already carved out a position in Europe’s solar market are
Canadian Solar
CSIQ
,
ReneSola
SOL
and
SolarEdge Technologies
SEDG
.
In March 2022, Canadian Solar became the largest solar developer in Italy based on contracted volumes after it signed two 10-year power purchase agreements with Axpo Italia for the purchase of 70% of the energy produced by two solar power plants under development totaling 84 megawatt-peak.
The Zacks Consensus Estimate for Canadian Solar’s 2022 sales suggests a growth rate of 171.1% from the prior-year reported figure. Shares of CSIQ have rallied 3.1% in the past three months.
ReneSola enjoys a strong presence in Europe, with a leading market share in Poland and Hungary. As of Dec 31, 2021, the company sold 12.3 megawatt (MW) of distributed generation (“DG”) projects in Hungary, 75 MW of DG projects in Poland and 12 MW of DG projects in Spain.
The Zacks Consensus Estimate for ReneSola’s 2022 earnings suggest a growth rate of 53.8% from the prior-year reported figure. Shares of SOL have rallied 1.5% in the past month.
SolarEdge has a strong footprint in 14 European countries, including the Netherlands, Italy, Poland, Spain, Switzerland and the United Kingdom. The company witnessed a significant increase in demand in the first quarter of 2022 and expects the strong growth momentum in Europe to continue going forward.
SolarEdge boasts a long-term earnings growth rate of 28.5%. SEDG shares have rallied 9.8% in the past year.
Price Movement
In the past year, shares of Enphase Energy have rallied 33.8% against the
industry
’s decline of 12.9%.
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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