SunPower Corporation ( SPWR Quick Quote SPWR - Free Report) recently announced a product-line extension in the battery-storage segment of its business. The company has strategically expanded its product portfolio by introducing 19.5 kilowatt-hour (kWh) and 39 kWh SunVault battery-storage products.
The launch extends SunPower’s SunVault availability in five configurations now, in 13 kWh, 19.5 kWh, 26 kWh, 39 kWh and 52 kWh. Some of these are equipped with multiple inverters and boast a storage capacity of 26 kWh or more, thus enabling homeowners to power the entire house in case of a power outage.
Such a product-portfolio building strategy is expected to provide SunPower with a competitive edge as it seeks to provide customers with a wide range of products to choose from.
Significance of the Newly Launched Products
The new battery configurations boast amplified energy density and maximize space within the battery compared with the older versions of SunVault. This boosts the storage capacity of the battery in a single box.
The additional features mean that customers will not have to spend more for a larger storage space. To complement this, SunPower has enhanced the SunVault with a modular configuration that increases the storage size as and when needed. SunPower has also put in efforts to enhance the agility and adaptability of the battery, thus easing the process of installation for homeowners.
Such design upgrades, along with capacity expansion, will surely aid product penetration amid rising solar demand, thereby boosting revenue generation prospects.
The recently enacted Inflation Reduction Act has the provision of incentives for homeowners opting for the battery-storage solution. From 2023 onward, homeowners can avail a 30% tax credit for battery technology when purchasing battery storage.
Such incentives would surely propel the demand for battery technology going ahead as prolonged power cuts, scorching heat waves along with high energy costs continue to add to the vulnerabilities of homeowners.
SunPower’s recent launch may help it to witness overwhelmingly strong demand as homeowners’ demand for a reliable, sustainable and clean energy source increases.
Other solar majors that have carved out a position in the battery-storage segment and may prosper in the increased demand scenario are:
Enphase Energy( ENPH Quick Quote ENPH - Free Report) : It is a manufacturer of fully integrated solar-plus-storage solutions. Its next-generation battery in North America is Enphase Encharge 3 and Encharge 10 storage systems, with a usable and scalable capacity of 3.4 kWh and 10.1 kWh respectively.
Enphase boasts a long-term earnings growth rate of 47.1%. ENPH has rallied 92.5% in the past year.
Canadian Solar( CSIQ Quick Quote CSIQ - Free Report) : Its subsidiary, CSI Solar, introduced its storage solution, EP Cube, in September 2022. EP Cube is a lightweight and sleek energy storage solution that seeks to provide an all-in-one storage solution for homeowners, thus eliminating the need to pick and choose what to power.
The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings suggests a growth rate of 135.4% from the prior year reported figure. CSIQ has rallied 8.7% in the past year.
SolarEdge ( SEDG Quick Quote SEDG - Free Report) : It is a provider of lithium-ion batteries and integrated energy storage solutions. In May 2022, SEDG announced the opening of Sella 2, a two-gigawatt-hour battery cell manufacturing facility. Sella 2 is expected to ramp up production during the second half of 2022.
SolarEdge’s long-term earnings growth rate is pegged at 29.1%. SEDG shares have risen 2.1% in the past year.
In the past year, shares of SunPower have risen 19% compared with the
industry’s 9.7% growth. Image Source: Zacks Investment Research Zacks Rank
SunPower currently carries a Zacks Rank #3 (Hold). You can see
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