Enphase Energy, Inc.
ENPH
recently revealed that the demand for its Enphase Energy Systems, powered by IQ8 Microinverters and IQ Batteries, has ramped up in New York as homeowners hunt for reliable backup power amid the approaching summer season and resultant heat waves.
To this end, it is imperative to mention that extreme weather conditions disrupt the proper functionality of the grid and thus tend to fuel the demand for resilient and sustainable backup power. In this context, Enphase products are uniquely designed to meet such energy independence demands.
Consequently, its products witness pent-up demand in areas that are prone to natural disasters and other extreme conditions, which stress the grid. The current intensified demand in New York is a testament to the fact.
Can Enphase Products Demand be Sustained in New York?
The demand for electricity on hot summer days in New York is at its peak, which strains the grid and leads to prolonged power outages. In such a scenario, ENPH may continue to capitalize on the growing demand as its products aim at boosting the usage of the battery storage solution during peak hours to reduce dependence on the grid and aid its proper functioning when energy usage is at the highest.
Moreover, going forward, the residential battery capacity in New York is likely to augment by nearly fivefold by the end of 2026, per the report from U.S. Energy Storage Monitor and Wood Mackenzie.
Against this backdrop, Enphase’s IQ8 Microinverter that offers distinctive advantages to users and is the first in the world to be certified by UL, a global safety science leader, is likely to witness further increased deployment in a region that boasts such a capacity expansion in the battery storage market.
Battery Storage Market Prospects in the US
The elevating utility prices, along with an increased focus of homeowners on becoming energy independent to dodge away from the grid going dark circumstances, are some of the factors that are primarily propelling the growth of the U.S. battery storage market. This is eventually benefiting companies like Enphase, which already enjoy a strong position as a leading U.S. manufacturer of microinverters and battery storage systems.
Per the report from Grand View Research, the U.S. battery storage market is expected to witness a CAGR of 23.9% over the 2020-2027 period.
Such growth projections entail immense prospects for solar companies in the United States like Enphase,
SolarEdge Technologies
SEDG
,
SunRun
RUN
and
SunPower
SPWR
to reap the multitude of gains and prosper in the expanding battery storage market.
SolarEdge’s StorEdge battery storage system helps meet energy demands with less or cheaper electricity. In 2021, the company strengthened its presence in the United States by launching its SolarEdge Energy Bank residential battery and SolarEdge Energy Hub inverter with enhanced backup power.
SolarEdgeboasts a long-term earnings growth rate of 28.5%. SEDG shares have appreciated 6.8% in the past year.
SunRun’s BrightBox battery storage system offers the flexibility to generate, store and manage clean, affordable solar energy. BrightBox can buffer homeowners from increasing energy costs so that they have power when they need it the most, thus enabling homeowners to take charge of their electric bills and get control of energy needs now and in the future.
The Zacks Consensus Estimate for SunRun’s 2022 sales indicates a growth rate of 19.6% from the prior-year reported figure. RUN shares have rallied 0.5% in the past month.
SunPower’s Equinox system with the SunVault Storage solution offers an effective storage solution to homeowners by collecting excess energy in the daytime and distributing it as needed to power essential devices during an outage, thus reducing reliance on grid electricity. This also reduces peak-time charges.
The Zacks Consensus Estimate for SunPower’s 2022 earnings is pegged at 36 cents per share, which implies a growth rate of a solid 414.3% from the prior-year reported figure. SPWR shares have rallied 4.3% in the past month.
Price Performance
In the past year, shares of Enphase have surged 13.5% against the
industry
’s decline of 24.6%.
Image Source: Zacks Investment Research
Zacks Rank
Enphase 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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