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ENPH, NextEnergy Ink Deal to Boost Solar Savings in Netherlands

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Enphase Energy, Inc. (ENPH - Free Report) recently joined forces with the Netherlands’ energy provider, NextEnergy, to help the nation’s solar homeowners optimize their energy savings.  This collaboration should further strengthen Enphase Energy’s footprint in the European solar market.

Benefits of ENPH’s Partnership

Per the contract, NextEnergy customers using Enphase Energy systems can join the Netherlands' grid imbalance energy market and can thereby save more money and recover their costs faster. In particular, ENPH’s new IQ Battery 5P and Energy Management software make it easier for homeowners to control their energy use and reduce expenses.

The partnership will also allow ENPH’s IQ Battery owners to join NextEnergy’s dynamic tariff program and virtual power plant (VPPs). According to Enphase Energy’s research, Dutch homeowners using its solar-plus-battery systems in VPPs with dynamic energy contracts can triple 25-year earnings compared with solar-only setups.

ENPH’s Expansion Spree in Europe

The European solar energy market has been reflecting solid growth trends lately backed by government support, increasing demand for sustainable energy and new options like community solar projects that lower costs. The growth expectation for this market remains solid as Europe progresses toward meeting its carbon-neutral goals, with more people and businesses adopting solar energy.

In line with this, the Business Market Insights firm predicts the European solar market will witness a CAGR of 12.7% during the 2022-2030 period.

Being a prominent solar industry player, Enphase Energy is actively working to capitalize on this growing market by expanding its presence in Europe through strategic partnerships and innovative product launches. The company partnered with Netherlands-based Frank Energie earlier this month, with the collaboration offering benefits to Frank Energie’s customers similar to those offered to NextEnergy.
 
Earlier in November 2024, Enphase Energy launched its new home energy systems in Romania. Additionally, the company introduced its IQ Battery 5P in Belgium in September and France in July. The latest partnership of ENPH with NextEnergy is yet another example of how it is steadily expanding its presence in the European region.

Opportunities for Peers

Other solar companies that are expanding their presence in Europe and thus expected to gain from this region’s solar market prospects are discussed below.

Canadian Solar Inc. (CSIQ - Free Report) : It has a solid presence in Germany, Poland, Spain, Italy, France and the Netherlands. As of Sept. 30, 2024, the company had 5,045-megawatt peak (MWp) of an early-stage pipeline in the Europe, Middle East and Africa region.

The Zacks Consensus Estimate for CSIQ’s 2025 sales indicates year-over-year growth of 18.4%. The stock boasts a long-term earnings growth rate of 25%.
 
Emeren Group Ltd. (SOL - Free Report) : In November 2024, the company announced a co-development agreement with Arpinge, a permanent capital vehicle focused on sustainable infrastructure in Italy, to jointly develop a 300 MW Battery Energy Storage System (BESS) portfolio in Southern Italy. Earlier, in October, Emeren sold a 57 MWp solar portfolio to Trina Solar (France) Systems, thereby expanding its presence in Europe.
 
The Zacks Consensus Estimate for SOL’s 2024 and 2025 earnings per share is pinned at 10 cents and 29 cents, respectively, indicating year-over-year growth of 400% and 193.3%.

SolarEdge Technologies (SEDG - Free Report) : It recently launched its first commercial storage system, the CSS-OD battery, in Germany. This new battery, paired with SolarEdge’s solar inverter and power optimizer, offers an integrated solar and storage solution. This launch is likely to strengthen SEDG’s footprint in the rapidly expanding European solar market.

The Zacks Consensus Estimate for SEDG’s 2025 earnings per share and sales indicates year-over-year growth of 86.6% and 36.7%, respectively.

ENPH Stock’s Price Movement

Shares of ENPH have risen 14.8% in the past month compared with the industry’s 1.1% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

ENPH’s Zacks Rank

ENPH currently carries 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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