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Enphase (ENPH) Expands Battery Storage Systems in Texas

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Enphase Energy, Inc.(ENPH - Free Report) announced that the Texas area has recorded an increased deployment of the Enphase Energy System, powered by IQ Microinverters and IQ Batteries, primarily due to adverse weather conditions like winter storms and hurricanes.

Enphase Energy’s Growth Prospects in Texas

Texas remains a lucrative market for solar players primarily due to the region’s commitment to shift to clean energy. According to a report of Solar Energy Industries Association (SEIA), Texas, electricity consumption in the state has been increasing manifold primarily due to the expanding economy. To meet the increased demand, more clean capacity additions remains a prerequisite for the region. Thus, the solar market prospects in Texas look bright.

Per the report, Texas with new capacity additions may become the nationwide leader in solar energy, with anticipated capacity addition of over 4 Gigawatt (GW) in the next five years.

Unlike conventional fossil fuel sources, solar power projects can’t produce 24x7 electricity. Instead battery storage ensures excess production from solar projects is available for use even after sun down. Considering the boom in the solar market in Texas, the battery storage and inverters market boast solid growth prospects in the long haul. This, in turn, is likely to increase demand for Enphase Energy’s battery and inverters, backed by their remarkable features.

Global Boom in Battery Storage and Inverters Market

Nations worldwide have been promoting usage of renewable sources of energy for a cleaner environment. Adoption of solar energy has been rapidly gaining momentum primarily due to its low cost feature. In this context, the battery storage system and inverters markets have been gaining strength as it is directly correlated with the penetration of renewable energy and offers low cost features.

According to a report from Markets and Markets, the battery storage system market is projected to reach $12.1 billion by 2025at a CAGR of 32.8%. Meanwhile, the global inverter market will see a CAGR of 15.6% through 2025.

To reap the benefits of the robust growth in battery storage and inverters market, other solar players namely SolarEdge Technologies (SEDG - Free Report) , SunRun (RUN - Free Report) and Canadian Solar (CSIQ - Free Report) are increasingly investing in the lucrative battery solar and inverters market.

SolarEdge’s StorEdge battery storage system helps meet energy demands with less or cheaper electricity. Its StorEdge Three Phase Inverter connects to 48V batteries from multiple battery vendors. The company recently strengthened its presence in the United States by launching its SolarEdge Energy Bank residential battery and SolarEdge Energy Hub inverter in North America.

The long-term earnings growth rate of SolarEdge for a 3-5 years period stands at 17.69%. Shares of SEDG have returned 20.8% in the past year.

SunRun’s Brightbox solar battery storage system comes with top-notch innovation in lithium-ion battery technology.

SunRun delivered an earnings surprise of 120% in the last reported quarter. Shares of RUN have lost 0.8% in the past six months.

Canadian Solar is developing one of the largest battery storage project pipelines in the world. As reported in August 2021, the company has 3 megawatt-hour (MWh) in operation, 1.5 gigawatt-hour (GWh) under construction, 0.8 GWh in backlog and 17 GWh in early/mid stage.

Canadian Solar’s long-term earnings growth rate is pegged at 12%. CSIQ stock has lost 10.2% in the past one year.

Price Movement

In the past one year, shares of Enphase Energy have gained 71.6%, against the industry’s decline of 6%.

Zacks Investment ResearchImage 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.