Enphase Energy, Inc.
ENPH
recently announced that its Enphase Energy System, powered by IQ Microinverters and IQ Batteries, recorded an increased deployment rate in Southern California. Of late, the adoption of Enphase battery storage and inverters in the region has been increasing, primarily due to prolonged power shutoffs.
Importance of Enphase Energy System
Enphase Energy, a leading U.S. manufacturer of microinverters and fully integrated solar-plus-storage solutions, is witnessing a rapid expansion of its footprint globally. Prior to the current development, the company recorded an increased deployment of the Enphase Energy System in Texas.
Also, Enphase Energy’sEnphase Envoy communications gateway connects Enphase systems to the Enphase Enlighten mobile app,which aids in providing homeowners insights into their system.
Such features indicate a strong growth momentum for ENPH’s Enphase Energy System in the long run, thereby bolstering its topline.
Growth Prospects in California
Per the new Californian law, new houses and buildings, high-rise residential units, hotels, schools and other structures must be outfitted with solar panels and battery storage in California.
Also, California Public Utilities Commission recently proposed that it will store the excess energy produced by a homeowner’s solar panels in an effort to boost the usage of battery storage and inverters by homeowners. Also, the California Independent System Operator region, part of the electric grid that covers most of the state, is expected to add 2.5 GW of battery storage capacity in 2021.
These factors along with frequent utility power shutoffs in recent times have helped solar companies like Enphase Energy, which offer energy storage solutions to enhance their footprint in the solar market of California. The latest increase, observed in the deployment of the company’s Enphase Energy System, is a testament to that.
Peer Moves
Considering the boom in the battery storage market of California, solar players who have forayed into the lucrative market are:
ReneSola
SOL
,in December 2020,clinched a power purchase agreement for the output of a 20MW solar project in California that will be coupled with 6.5 MW/26 MWh of battery storage.The solar-storage plant is expected to become operational by the third quarter of 2022. Its integrated battery facility will provide four hours of energy storage capacity.
ReneSola has a trailing four-quarter earnings surprise of 127.50%, on average. The Zacks Consensus Estimate for SOL’s 2021 sales suggests growth of 10.2% over the prior-year figure.
Canadian Solar
CSIQ
announced in September 2021 that its subsidiary, CSI Solar,has secured a 350 MW / 1400 MWh contract to provide the fully-integrated battery storage system, engineering, procurement, and construction and long-term maintenance service to the Crimson stand-alone battery storage project in Riverside County, CA.
Canadian Solar’s long-term earnings growth rate is pegged at 12%. The Zacks Consensus Estimate for CSIQ’s 2021 sales suggests growth of 52.3% over the prior-year figure.
SunRun
RUN
,in July 2020,announced that it will deploy thousands of solar-battery systems to provide backup power to the residents of the California Bay Area. Per the deal, Sunrun would install up to 20 MW of solar-battery systems for about 6,000 houses.
SunRun delivered an earnings surprise of 120% in the last reported quarter. The Zacks Consensus Estimate for RUN’s 2021 sales indicates an improvement of 70.1% over the prior-year figure.
Price Movement
In the past year, shares of Enphase Energy have rallied 16.7% against the
industry
’s decline of 28.2%.
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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