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Enphase Expands IQ Energy Management to Include Water Heaters

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Key Takeaways

  • Enphase has added electric water heater control to its IQ Energy Management system in Europe.
  • The update lets users manage solar, storage, EVs, heat pumps and water heaters from one app.
  • This expansion boosts efficiency, increases solar self-consumption and supports flexible energy use.

Enphase Energy, Inc. (ENPH - Free Report) recently expanded its IQ Energy Management system to include select electric water heaters in Belgium, the Netherlands and Switzerland. The update allows homeowners to manage solar panels, battery storage, electric vehicle chargers, heat pumps and electric water heaters from a single platform.

The new capability improves the AI-driven system, giving users better control over energy use based on electricity rates, weather and household patterns. This expansion strengthens Enphase’s smart home energy solutions and supports more efficient and flexible energy use across Europe.

Importance of ENPH’s IQ Energy Management

The IQ Energy Management system helps households generate, use, save and sell energy more efficiently by coordinating multiple connected devices from one platform. Features such as scheduling electric vehicle charging during low-rate periods, running heat pumps when solar power is abundant and preheating water when renewable energy is available allow households to use clean energy more effectively.

Adding control of electric water heaters further improves home energy optimization. It increases self-consumption of solar power and enables participation in demand response or virtual power programs, providing both economic and environmental benefits. The AI system automates these decisions through the Enphase app, making energy management simple and convenient for homeowners.

ENPH’s Growth Prospects

The growing global solar market provides strong opportunities for Enphase. The company is well-positioned as a leading manufacturer of microinverters and integrated solar and storage solutions. As more homeowners and businesses adopt solar energy, demand for efficient and reliable solar equipment continues to rise, benefiting Enphase.

Enphase’s solar products, including its advanced microinverters and battery storage systems, help homeowners maximize energy generation and usage. The integration of AI-driven energy management further strengthens its offerings, making its solutions more attractive in a competitive market.

Stocks to Consider

Other solar companies that are likely to benefit from the expanding solar market are discussed below.

Emeren Group Ltd. (SOL - Free Report) is a leading solar project developer. It has an impressive solar development project pipeline of 6,510 megawatt (MW), out of which 4,279 MW are in the early stage and 2,231 MW in the advanced stage.

The Zacks Consensus Estimate for SOL’s 2025 earnings per share is pinned at 11 cents, indicating year-over-year growth of 145.8%.

First Solar, Inc. (FSLR - Free Report) is the largest PV solar module manufacturer in the United States. The company is investing heftily to expand its manufacturing capacity. Through these vigorous manufacturing capacity expansions, the company expects to have an annual manufacturing capacity of more than 25 gigawatt (GW) by the end of 2026.

The Zacks Consensus Estimate for FSLR’s 2025 and 2026 earnings per share is pinned at $15.10 and $22.52, respectively, indicating year-over-year growth of 25.6% and 49.2%.

SolarEdge Technologies (SEDG - Free Report) is a leading provider of an optimized inverter solution consisting of inverters, power optimizers and a communication device that enables access to a cloud-based monitoring platform. During the second quarter of 2025, the company shipped approximately 1.2 gigawatts alternating current (GWac) of its DC-optimized inverter systems and 247 megawatt-hours (MWh) of residential batteries.

The Zacks Consensus Estimate for SEDG’s 2025 and 2026 loss per share indicates year-over-year improvement.

ENPH Stock’s Price Movement

Shares of ENPH have lost 1.7% in the past month against the industry’s 17.1% growth.

Zacks Investment Research
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ENPH’s Zacks Rank

ENPH 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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