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SolarEdge (SEDG) Launches Its First Battery Virtual Power Plant

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SolarEdge Technologies, Inc. (SEDG - Free Report) recently unveiled its first Battery Virtual Power Plant program in Great Britain. With the launch, the company aims at boosting Great Britain’s National Grid ESO Demand Flexibility Service.

Rationale Behind the Launch

Grid stabilization and the proper and smarter usage of the energy produced with the help of SEDG’s innovative battery solution are the foundation of the program. SolarEdge’s innovative technology has been built in a way to maximize battery charge and discharge during peak demand, thus optimizing homeowners’ benefits while supporting the smooth running of the grid.

Moreover, as part of the program, homeowners can earn financial incentives by using their stored battery energy. Battery owners can also reap the benefits of even more financial incentives by transferring the surplus stored energy back to the grid.

Such programs by the company are likely to strengthen its customer base while boosting its presence in the lucrative global solar market. This will bolster SEDG’s revenue generation prospects.

Global Battery Storage Market’s Growth Prospects

The battery storage market globally has been continuously gaining momentum, buoyed by the increased adoption of renewable sources of energy like solar and wind and the need for a reliable and sustainable energy storage solution. Also, various government incentives to support the growth of the battery storage market, advancement in battery storage solution technology and increasing affordability will increase its demand.

All these factors have supported the growth of the battery storage market significantly, and one may expect this market to gain momentum in the days ahead. Per the latest report from Globe Newswire, the global battery storage market may witness a CAGR of 11.1% over the 2022-2026 period.

Such growth projections should benefit solar companies like SolarEdge, which continue to expand in the battery storage market through innovative technologies and programs like the latest one. Other prominent solar players like Enphase Energy (ENPH - Free Report) , Canadian Solar (CSIQ - Free Report) and SunPower (SPWR - Free Report) can also reap the benefits of the expanding battery storage market.

Enphase Energy produces a fully integrated solar-plus-storage solution. Its IQ battery storage systems come with a usable and scalable capacity of 10.1 kilowatt hours (kWh) and 3.4 kWh. The company expects to generate its third-generation IQ battery, starting in North America and Australia in the first half of 2023.

The Zacks Consensus Estimate for Enphase’s 2022 earnings suggests a growth rate of 82.9% from the prior-year reported figure. Shares of ENPH have soared 54.5% in the past year.

In September 2022, Canadian Solar’s arm, CSI Energy Storage, launched SolBank, a proprietary designed and manufactured energy storage battery solution for utility-scale applications. CSI Energy Storage announced the expansion of its battery manufacturing capacity from the existing 2.5 gigawatt-hour (GWh) to 10 GWh by the end of 2023.

The Zacks Consensus Estimate for Canadian Solar’s 2022 sales suggests a solid growth rate of 39.1% from the prior year’s reported figure. Shares of CSIQ have rallied 48.3% in the past year.

SunPower Corporation’s SunVault Storage offers whole home backup in an outage from the only home solar and storage solution. On Sep 20, 2022, SunPower expanded its portfolio of energy storage products with the launch of the 19.5 kWh and 39 kWh SunVault.

The Zacks Consensus Estimate for SunPower’s 2022 earnings suggests a solid growth rate of 385.7% from the prior year’s reported figure. The Zacks Consensus Estimate for SPWR’s 2022 sales indicates growth of 30.7% from the prior year’s reported figure.

Price Movement

In the past year, shares of SolarEdge have soared 32.7% compared with the industry’s 49.4% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

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

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