Enphase Energy, Inc. (ENPH - Free Report) has announced that its manufacturing facility in Mexico has expanded with its agreement with Flex Ltd. (FLEX - Free Report) . As per the agreement, starting from second-quarter 2019, Flex will begin delivering products produced by the company’s facility in Mexico to the U.S. market.
Solar Outlook: Holds Promise for Microinverter
Per U.S. Energy Information Administration (“EIA”), the source of energy from renewables increased over the years. Around 55% of the total energy, nearly 21 gigawatt (GW) added in the United States last year, was from a renewable source.
By 2018 end, EIA expects an additional 5,067 megawatt (“MW”) of solar power to come online. Per the forecast, solar capacity is anticipated to grow by 127 gigawatt (GW) in 2050 from 2.3 GW at the end of first half of 2018. Also, electricity produced from solar power will likely account for nearly 14% of the total energy output to be generated during the same period. The above projection from EIA indicates towards a massive addition of solar generation in the electricity production mix. We can safely conclude there will be increasing demand for Enphase Energy’s microinverters over the long run.
The company is continuously putting efforts and carrying out research & development to bring out new and better quality microinverters to serve its existing and potential customers. Also, the company is expected to introduce a more powerful and compact IQ 8 system in 2019, which will allow a solar system to operate independently of the power grid.
Importance of Renewable
Renewable Energy source has been gaining momentum globally. The International Energy Agency (IEA) estimates electricity generation from solar PV to grow from 416 terawatt hours (TWh) in 2017 to more than 2,700 TWh in 2030. Also, the International Solar Alliance (ISA) plans to channelize more than $1,000 billion of investment by 2030 in deploying solar energy at affordable costs.
Other companies focusing on renewable energy like solar energy are Canadian Solar Inc. (CSIQ - Free Report) , which currently has multiple late-stage 2.3 gigawatt-peak (GWp) utility-scale solar power projects in its pipeline including those under construction. Another company in the same space, JinkoSolar Holding Co., Ltd. (JKS - Free Report) has multiple solar projects in pipeline around the globe. The company has singed a few agreements with international companies to supply solar modules.
Price Movement & Zacks Rank
In the past year, shares of Enphase Energy have skyrocketed 239.2% compared with its industry’s rally of 21.7%. Enphase Energy currently has 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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