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Enphase (ENPH) & Blue Raven's Solar Deployment Rises in the US

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Enphase Energy, Inc. (ENPH - Free Report) recently highlighted its valued partnership with the solar system installer, Blue Raven Solar, in the United States, with the latter significantly boosting the adoption of Enphase Energy Systems across the nation. Blue Raven Solar is offering Enphase’s IQ8 Microinverters to several states in the United States, enhancing Enphase’s footprint through its distribution channel and solid customer base.

Blue Raven’s vast footprint in the United States will be instrumental to Enphase’s increased product deployment in the nation.

Enphase’s Growth Prospects in the United States

As the United States gradually moves toward renewables, solar can be expected to continue to play a dominant role in its energy mix. Per the report from the Solar Energy Industries Association (“SEIA”), in 2022, 50% of all the new electric capacity added to the grid came from solar, the largest share in history. Moreover, the residential solar market witnessed its sixth consecutive record year in 2022, growing 40% over 2021, with 5.9 gigawatts (GW) installed per SEIA.

More than half of the new U.S. generating capacity expected by the end of this year will come from solar power, as projected by the U.S. Energy Information Administration in March 2023.

The projected growth prospects of the U.S. solar market tend to benefit Enphase, which boasts a strong portfolio of products and an impressive customer base. The increased deployment of its solar products observed across the nation bears a solid testament to the fact.

To meet the increasing solar demand in the United States, Enphase is actively looking at expanding manufacturing capacity in the United States and plans to open four to six manufacturing lines in this nation by the second half of 2023. Such expansion plans tend to boost the long-term growth of the company in the booming U.S. solar market.

Peer Moves

The United States being an opportunistic market for solar players, other than Enphase, solar companies that have plans to expand their manufacturing lines in the region are as follows:

SolarEdge (SEDG - Free Report) , as part of manufacturing regionalization efforts, is expanding its manufacturing capabilities with a new manufacturing site in Mexico. The site is expected to finalize its ramp-up phase in the first half of 2023.

The long-term earnings growth rate of SolarEdge is 33.4%. The Zacks Consensus Estimate for SEDG’s 2023 earnings has been revised upward by 13.1% in the past 60 days.

First Solar, Inc. (FSLR - Free Report) is planning to expand its manufacturing capacity by 11 GW by 2025. This includes its third manufacturing facility in the United States, which commenced its commercial operation in early 2023.

First Solar is now projected to build its fourth manufacturing facility in Alabama. It is expected to commence operations in late 2024. Moreover, the company intends to expand its manufacturing footprint at its existing facilities in Ohio.

The Zacks Consensus Estimate for FSLR’s 2023 sales suggests a growth rate of 32.1% from the prior-year reported figure. First Solar shares have witnessed a stark improvement of 182.9% in the past year.

Price Movement

In the past month, shares of Enphase Energy have risen 11.9% compared with the industry’s growth of 10%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

Enphase Energy currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Maxeon Solar Technologies (MAXN - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Maxeon’s 2023 sales suggests a growth rate of 41.4% from the prior-year reported figure. The company delivered an earnings surprise of 190.2% in the last reported quarter.

MAXN delivered a four-quarter average earnings surprise of 36.7%. The Zacks Consensus Estimate for 2024 sales suggests a growth rate of 17.1% from the prior-year reported figure.

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