Enphase Energy, Inc.
ENPH
recently unveiled that Belgium witnessed the increased adoption of the Enphase Energy System, powered by IQ Microinverters and IQ Batteries, as homeowners search for a reliable storage solution to save on their energy bills.
This indicates Enphase Energy’s solid business growth in the European battery storage market, which should boost its international revenues.
Enphase Energy’sGrowth Prospects in Belgium
The solar market in Belgium is rapidly gaining momentum dueto the region’s decarbonization commitments. In this context, it is imperative to mention that to encourage the adoption of home battery systems, the region offers subsidies to consumers in return for providing the extra energy produced.
Additionally, in 2022, Belgium is planning to introduce capacity tariffs, injection taxes and dynamic price contracts, which would further boost investments in residential storage systems going forward.
All these factors together are likely to boost solar capacity additions in the region along with the increased battery installation system. This signifies ample growth opportunities for Enphase Energy to further strengthen its presence in the market with its innovative products, which encourages less dependence on the grid.
European Solar Boom
The European renewable energy landscape is poised to show strong momentum, buoyed by the continent’s green energy goal and the application of key measures to boost the adoption of renewable sources of energy. Per the latest Solar Power European report, the European Union recorded 34% growth in the new solar PV capacity in 2021, recording an all-time high growth in a decade.
The European Solar market is poised to record a growth rate of 18%-20% through the 2022-2025 period, adding approximately 162.7 gigawatts (GW) to reach 327.6 GW by the end of 2025.
Prominent solar players who are investing in the rapidly expanding European solar market in a bid to capitalize on the tremendous growth opportunity are
Canadian Solar
CSIQ
,
ReneSola Ltd
SOL
and
First Solar
FSLR
.
In May 2021, Canadian Solar signed a long-term power purchase agreement with Axpo Italia for the purchase of energy produced by its two solar power plants under development, totaling 12 (megawatt-peak) MWp in Italy. The construction of the two solar power plants must have begun by the end of 2021 as planned and will use Canadian Solar’s high-efficiency modules.
The Zacks Consensus Estimate for Canadian Solar’s 2023 earnings suggests a growth rate of 200.3% from the prior-year reported figure. Shares of CSIQ have rallied 13.1% in the past month.
In September 2021, ReneSola, in a joint venture with Eiffel Investment Group, acquired a solar project in Europe with a combined capacity of 200 megawatts (MW), which takes the joint venture one step closer to its goal of building 700 MW of solar projects over the span of three years in Europe.
The Zacks Consensus Estimate for ReneSola’s 2023 sales indicates an improvement of 46.5% over the prior-year reported figure. SOL shares have rallied 4.2% in the past month.
In September 2020, First Solar’s advanced Series 6 photovoltaic (PV) solar modules were selected by JP Energie Environnement to power its 59-MW DC Labarde solar power plant, the largest urban PV power plant in France.
The long-term earnings growth rate for First Solar stands at 9.5%. Shares of FSLR have rallied 1.1% in the past month.
Price Movement
In the past year, shares of Enphase Energy have rallied 6.8% against the
industry
’s decline of 27.4%.
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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