Enphase Energy (ENPH - Free Report) announced that it inked a deal with Courant Naturel — a residential solar installer in southwest France — to deliver its IQ 7X microinverters. Through the partnership, Courant Naturel will also gain access to 96 cell modules from SunPower (SPWR - Free Report) X-Series. The IQ7X microinverters along with 96 cell modules will provide a complete solar solution to Courant Naturel's customers in the region.
The deal will expand Enphase’s footprint in the expanding French solar market.
Growth Prospects in French Market
In recent times, the demand for solar energy in France has been increasing rapidly. Under its 10-year energy plan, the French government has expressed the desire to install renewables capacity of more than double to 113 gigawatts (GW) by 2028 mainly by adding more wind and solar powers. It expects a solar photovoltaic capacity of 35.6-44.5 GW in 2028, with 20.6 GW installed by 2023.
The French government has also planned to substantially increase investment in renewable assets. It aims to invest $77.06 billion (71 billion euros) in 2019-2028. The French government said that the new funds will increase its solar power generation to five-fold. We believe that with such positive indications, the recent deal is creating further growth opportunities for Enphase in France.
Increasing Global Solar Demand
Being a global energy technology company, Enphase shipped more than 25 million microinverters across 130 countries. The solar microinverter market is booming and still has a long way to go. Per a report by the International Renewable Energy Agency (“IRENA”), global electricity generation from solar energy is expected to increase to nearly 360 GW per year by 2050 from the current level of 109 GW.
With the increasing solar power demand, companies, which operate globally, like Canadian Solar (CSIQ - Free Report) and JinkoSolar (JKS - Free Report) are expected to grow further.
Price Performance & Zacks Rank
In a year, shares of Enphase have surged 249.4% compared with the industry’s 6.6% growth.
The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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