Enphase Energy, Inc. (ENPH - Free Report) has recently entered into a multi-year supply agreement with Infineon Technologies AG. Infineon will supply 600 V CoolMOS G7 power transistors that will be used in the alternating current (AC) output stage of Enphase’ IQ 7 series of microinverters. The supply is expected to start in the second half of 2019.
Importance of Transistors in Microinverters
The seventh-generation microinverters are more efficient than the existing microinverters. The microinverters convert the direct current (DC) generated by a solar module to alternating current (AC). The various electrical and electronic components are used to make the circuit help in the conversion.
The transistor is used for reliable and high-performance power switching in microinverters. The IQ microinverter system simplifies solar installations and provides a safe solar solution to homeowners. The long-term deal is prudent to cope with the higher demand of microinverters.
Increase in Solar Generation
Per the U.S. Energy Information Administration (EIA),renewable generation provided a new record of 742 million megawatt hours (MWh) of electricity in 2018, nearly double the 382 million MWh produced in 2008. Renewables provided 17.6% of electricity generation in the United States in 2018, of which 90% were contributed by wind and solar generation.
U.S. solar generation has increased from 2 million MWh in 2008 to 96 million MWh in 2018. Solar generation contributed only 2.3% to electricity generation in 2018 and its contribution is expected to increase further from the current levels.
Solar Energy Gains Popularity
Apart from enjoying strong distribution network in the U.S. Solar market, Enphase Energy is successfully employing a robust distribution networking system across the United States, Canada and the Netherlands. Enphase has shipped more than 19 million microinverters in more than 125 countries.
In addition to Enphase Energy, Solaredge Technologies Inc. (SEDG - Free Report) and SunPower Corp. (SPWR - Free Report) also deal in microinverters.
Enphase Energy’s shares have surged about 156% in a year, against the industry’s decline of 5.6%.
Enphase Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Another top-ranked stock in the same industry is Sunrun Inc. (RUN - Free Report) . Sunrun also holds a Zacks Rank #2 .The Zacks Consensus Estimate for 2019 earnings has risen 18% to $1.18 in the past 60 days. Long-term earnings growth of the company is pegged at 20.80%.
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