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Enphase's (ENPH) Products See Increased Adoption in Virginia

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Enphase Energy, Inc. (ENPH - Free Report) recently announced that its installers are witnessing the wider product adoption of the Enphase Energy System, powered by 1Q8 microinverters, in Virginia. The strengthening demand entails Enphase’s product increased popularity and acceptance among customers. This assists in boosting its revenues and profitability.

Enphase’s Growth Prospects in Virginia

Virginia is steadily moving toward energy resources that ensure sustainability, reliability and affordability. The state is gradually building on headship and infrastructure in the wind and solar projects, among other energy generation resources. Virginia ranks ninth in the total installed solar capacity among the U.S. states.

Virginia’s efforts to build up steam on its solar energy capacity generation can be gauged by a recent report from the Solar Energy Industries Association. Per the report, Virginia boasts a total solar investment of $4.8 billion, while the state added 4,286 megawatts (MW) of solar capacity in the region as of December 2022. Out of this, $787 million was invested in 2022 in 525 MW of solar capacity addition.

Going forward, the report anticipates 5,757 MW of solar energy to be installed in the next five years in Virginia. Such projections promise immense potential for expansion for companies like Enphase, which could significantly capture more market share in the state through the impressive portfolio of products in the solar arena.

Peer Moves

The United States is progressively strengthening its eco-friendly ways of energy generation to reduce the carbon footprint. The latest annual energy outlook by the U.S. Energy Information Administration suggests renewable energy capacity to grow in all the regions of the United States in the days ahead, with solar and wind resources of energy likely to dominate the energy mix.

In light of the aforementioned factors, solar companies like Enphase have substantial prospects in the days ahead to innovate products and expand business operations to capitalize on the growing demand. Solar companies that portray strength in the business structure and boast capabilities to prosper in the expanding size of the U.S. solar market are as follows:

First Solar (FSLR - Free Report) is a leading solar module manufacturer. In 2022, the United States accounted for 84% of the company’s net sales. Moreover, the company is in the process of expanding its U.S. manufacturing capacity by approximately 7.7 gigawatts, which should boost its sales in the region.

The Zacks Consensus Estimate for First Solar’s 2023 earnings has been revised upward by 41.4% in the past 60 days. FSLR shares have recorded a stark improvement of 164.5% in returns in the past year.

Canadian Solar (CSIQ - Free Report) caters to a geographically diverse customer base across key markets in the United States. The company is planning to boost its U.S. domestic manufacturing activity in light of the recently enacted Inflation Reduction Act. Canadian Solar recently launched SolBank, an energy storage battery solution, in the United States.

The Zacks Consensus Estimate for Canadian Solar’s 2023 earnings has been revised upward by 5.8% in the past 60 days. CSIQ shares have increased 12.2% in the past three months.

SunPower (SPWR - Free Report) is one of the most forward-integrated solar companies in the United States. The enactment of the IRA is favorable for SunPower’s business as it may increase the demand for its services due to the extensions and expansions of tax credits. Considering this, the company expects its residential customer volume to grow by more than 19% in 2023 over 2022.

The long-term earnings growth rate of SPWR is pegged at 48.7%. The Zacks Consensus Estimate for SunPower’s 2023 earnings suggests a growth rate of 21.2% from the prior-year reported figure.

Price Movement

In the past year, shares of Enphase Energy have risen 3.8% compared with the industry’s growth of 1.5%.

Zacks Investment Research
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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