Enphase Energy, Inc. ( ENPH Quick Quote ENPH - Free Report) recently rolled out its new Enphase Energy System for the United Kingdom’s solar market. The new launch is claimed to have the most powerful range in Enphase Energy System offerings to date, presenting its brand-new IQ Battery 5P and IQ8 Microinverters.
The new offerings are available for order with immediate effect, with shipments likely to commence by the end of September. Enphase’s cutting-edge solar and storage products in tandem with the United Kingdom’s solar growth prospects are likely to result in a strong revenue inflow for the company post this new launch.
Enphase’s Steady Expansion in International Markets
Of late, Enphase has been encountering challenges in the U.S. solar market, mainly due to macroeconomic conditions, which resulted in a 12% quarter-over-quarter decline in revenues in the second quarter. This top-line deceleration came in higher than the 9% decline ENPH witnessed in the first quarter.
On a bright note, in international markets, the company seems to be gaining momentum, which can be gauged by a 25% quarter-over-quarter rise in revenues in Europe in the last reported quarter, with robust growth nearly tripling on a year-over-year basis.
Its sell-through of microinverters in Europe was 13% higher in the second quarter compared with the first quarter. The aforementioned growth was fueled by its steady expansion in parts of Europe like Germany, France, Netherlands, Spain, Portugal, Poland, Belgium, Austria and Switzerland.
Apart from the European solar market, ENPH enjoys a solid presence in Australia, Latin America and Brazil. Going ahead, Enphase plans to solidify its position in global markets by introducing its technologically advanced new products that offer sustainability and reliability. We may expect the company to unveil its IQ Battery 5P and IQ8 Microinverters, powered by the Enphase Energy System, in more international markets, which should fetch a handful of returns in the days ahead.
Peers’ Focus on Global Expansion
Per the report from Mordor Intelligence, the solar energy market is poised to witness a CAGR of 12.7% over the 2023-2028 period. The promising growth opportunities bolster Enphase’s intent to progressively broaden its presence globally and enhance its returns.
Other solar players in the industry that are steadily expanding their footprint globally are as follows:
SolarEdge ( SEDG Quick Quote SEDG - Free Report) : Its international presence continues to bolster its revenue generation prospects. The company has a strong presence in Germany, the United Kingdom, Switzerland, South Africa and Thailand. SolarEdge expects the momentum to continue to grow in Europe, particularly in Germany, where installation activity is anticipated to rise from 7.5 GW in 2022 to 10 GW in 2024.
SolarEdge boasts a long-term earnings growth rate of 24.4%. The Zacks Consensus Estimate for SolarEdge’s 2023 earnings suggests a growth rate of 59.3% from the prior-year reported figure.
Canadian Solar ( CSIQ Quick Quote CSIQ - Free Report) : It caters to a geographically diverse customer base across key markets in the United States, China, Japan, the U.K. and Canada and emerging markets in Brazil, India, Mexico, Italy, Germany, South Africa and the Middle East. Of late, the company has further expanded its global late-stage project pipeline into nations like Argentina, Australia and South Korea as these markets are expected to see the next phase of industrial growth.
The Zacks Consensus Estimate for Canadian Solar’s 2023 sales suggests an improvement of 15.6% from the prior-year reported figure. The Zacks Consensus Estimate for Canadian Solar’s 2023 earnings calls for growth of 80.5% from the prior-year reported figure.
First Solar ( FSLR Quick Quote FSLR - Free Report) : The company is steadily expanding its footprint in India and Europe. First Solar has finished the construction of its 3.3 GW first manufacturing facility in India and is expected to have begun production by the end of August 2023, per its earlier made projection.
The Zacks Consensus Estimate for First Solar’s 2023 sales suggests a growth rate of 35.5% from the prior-year reported figure. Shares of FSLR have returned 28% returns to its investors in the past year.
In the past month, shares of Enphase Energy have declined 4.2% compared with the
industry’s fall of 4.6%. 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 .