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Enphase (ENPH) Expands Partnership With AC Solar Warehouse

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Enphase Energy, Inc. (ENPH - Free Report) recently announced the expansion of its partnership with AC Solar Warehouse.
AC Solar Warehouse, which has offered Enphase products for more than 10 years, is responsible for the distribution of Enphase Energy System in Australia.

The Enphase Energy System, introduced in Australia in May 2023, is equipped with IQ Battery 5P and IQ8 Microinverters. It is a single platform that combines solar, storage and monitoring.

Significance of the Enphase Energy System

The new microinverters, IQ8AC and IQ8HC, which feature a peak output power of 366 W and 384 W, respectively, are designed to pair seamlessly with a full range of solar modules up to 505 W DC. These microinverters can manage a continuous, direct current of 14 amperes, thereby supporting high-powered solar modules through increased energy harvesting.

For battery backup, homeowners can pair IQ battery 5P with IQ8 microinverter with no sizing restrictions. The sunlight jump start feature in IQ8 microinverters can restart a home energy system using only sunlight after a prolonged grid outage that drains the battery.

Growth Prospects in Australia

Australia’s solar market provides significant growth opportunities, primarily due to increased investment and deployment of solar plants and various government policies favoring development. According to a report by Mordor Intelligence firm, the solar market’s installed capacity is expected to go from 36.50 gigawatts (GWs) in 2023 to 70.49 GWs by 2028, at a CAGR of 14.07% during 2023-2028.

Such solid market growth opportunities in Australia’s solar industry should boost Enphase Energy, which already enjoys a strong presence in this market. In May 2023, Enphase launched its most powerful energy system, coupled with IQ battery 5P and IQ8 microinverter in Australia. Recently, Enphase achieved a milestone when AC Solar Warehouse sold its one-millionth microinverter in Australia.

With Enphase’s system already available in Australia’s solar market, the recent launch of the company’s energy system will surely strengthen its position in this space.

Considering the solid energy storage capacity enhancement offered by Australia, few other solar companies are expanding their footprint in this nation.

Canadian Solar (CSIQ - Free Report) : In November 2023, e-STORAGE, Canadian Solar’s subsidiary, was selected as the supplier for Engineering, Procurement and Construction and Operations and Maintenance by Copenhagen Infrastructure Partners to deliver its Summerfield battery storage project, a 2-hour 240 MW (480 MWh) DC energy storage solution in South Australia.

The Zacks Consensus Estimate for CSIQ’s 2023 earnings per share (EPS) implies growth of 7% from the 2022 reported figure. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 1.2% from the prior-year reported number.

Maxeon Technologies (MAXN - Free Report) : In September 2023, Maxeon launched its SunPower One ecosystem of products and services in Australia. In October 2023, the company showcased its new products at the All Energy 2023 event. These products included the SunPower Reserve — the company's home energy storage system — the newest generation of performance line solar panels with high-efficiency TOPCon cell technology, etc.

The stock currently boasts a long-term (three-to five-years) earnings growth of 39.7%. The Zacks Consensus Estimate for MAXN’s 2023 sales implies an improvement of 7.2% from the 2022 reported figure.

JinkoSolar Holdings (JKS - Free Report) : In November 2023, the company announced that it has successfully supplied the renowned Australian distributor, Blue Sun Group, with an impressive 300+ MW of solar modules, complemented by an energy storage capacity of 2488.32 kilowatt hours. JinkoSolar leads the way in developing liquid-cooled energy storage systems in the Australian market.

The Zacks Consensus Estimate for JKS’ 2023 earnings suggests an improvement of 108.6% from the 2022 reported figure. The Zacks Consensus Estimate for JKS’ 2023 sales implies a rise of 34.9% from the 2022 reported figure.

Price Performance

In the past three months, shares of ENPH have lost 16.5% compared with the industry’s 28.2% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

Enphase currently has a Zacks Rank #5 (Strong Sell).

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

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