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Enphase (ENPH), Urban Solar Ink Deal for 719kW Solar Facility

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Enphase Energy, Inc. (ENPH - Free Report) recently announced its partnership with Florida’s Urban Solar, which involves construction of a large-scale commercial solar system with a capacity of 719 kilowatts (kW). The facility will provide electricity to the Praxis of Deerfield Beach senior living community in Deerfield Beach, FL.

On the deal completion, the solar system is expected to produce 1,040,900 kilowatt hour of electricity in its first year of operation.

Enphase’s Role in the Facility

Per the deal terms, 1,798 of Enphase’s IQ 7+ microinverters managed by nine Enphase Envoy communications gateway devices have been included in the Praxis solar array. These gateways connect Enphase Solar systems to the Enphase Enlighten software monitoring platform, which in turn facilitates easier per-panel energy monitoring, and insights for operations and maintenance.

Florida’s Solar Prospects

Florida, otherwise known as the Sunshine state, has always been a profitable abode for solar players. Per the latest report by the Solar Energy Industries Association, as of third-quarter 2020, a total of 5,748.7 megawatts (MW) of solar energy was installed in Florida, which is expected to grow 44.3% over the next three years.

Such projections must have been luring solar panel and microinverter manufacturers to expand footprint in Florida’s solar market through valuable partnerships like the latest one.

Why IQ 7?

In addition to its proven performance and reliability, what makes Enphase’s IQ 7 family of microinverters stand out is the in-built rapid shutdown device. With more than an aggregated one million hours of cumulative power-on testing to help ensure exceptional performance under heat, high humidity, salty air and cold, the IQ 7 microinverter family is the perfect choice for microinverter that can survive in Florida’s climate.

Considering the aforementioned growth opportunities of the Floridian solar market and Enphase IQ 7’s compatibility with the local weather, we expect the latest deal to further enhance its market share in the Sunshine state.

Global Solar Boom

Driven by rapid decline in the cost of solar installations and growing solar investments from big corporate houses, the global solar market has been rallying over the past decade. Per a report by Fortune Business Insights, the global solar power market size is projected to reach 4766.8 MW in 2026 from 2019, exhibiting a CAGR of 30.7%.

To reap the benefits from this expanding global solar market, Enphase Energy and other solar players are making every possible effort. They also boast bright prospects. As of Dec 31, 2020, Enphase shipped more than 32 million microinverters worldwide. The company is making good progress on launching the IQ 8 PV, the world’s first grid independent microinverter.

First Solar (FSLR - Free Report) ended 2020 with net bookings of 5.5 gigawatts and a current contracted backlog of 13.7 gigawatts. The company expects to increase the nameplate Series 6 manufacturing capacity to 9.4 GWDC by 2022-end.

Meanwhile, JinkoSolar (JKS - Free Report) shipped 5,117 MW of modules, which increased 53.8% year over year. For 2021, the company expects to witness rapid growth in module shipments.

Moreover, SunPower (SPWR - Free Report) witnessed a solid year-over-year increase in new home installs during the fourth quarter. Strong quarterly bookings resulted in a record backlog of more than 180 MW. The company expects new homes growth rate to exceed 40% over the next few years, considering its leading market share and strong backlog.

Zacks Rank & Price Movement

Enphase currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Shares of Enphase have gained 256.3% in the past 12 months compared with the industry’s 119.5% rise.

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