Enphase Inks IQ 7 Microinverters Distributor Deal in Europe
Enphase Energy, Inc. ENPH recently partnered with European solar distributors, Carbomat Group, Libra Energy and Solarclarity, which will give the microinverter manufacturer increased access in the Netherlands and Belgium solar markets. Per the partnership, the aforementioned distributors will supply Enphase IQ 7 family of microinverters to residential installers, which will then be outfitted with Enphase Envoy communications gateways.
Rationale Behind the Deal
Being a prominent microinverter supplier in the global solar space, Enphase has been expanding its footprint worldwide, through varied initiatives, the latest partnership deal being one of them. To this end it is imperative to mention that the company is witnessing increased demand for its microinverters in Belgium and the Netherlands, in particular, with the residential sector and small-scale businesses rapidly adopting its microinverter technology.
New housing construction in Belgium and the Netherlands has also been boosting the demand pool for Enphase’s next-generation microinverters. These factors must have encouraged Enphase to sign the aforementioned partnership.
Enphase’s European initiatives
Not only the Netherlands and Belgium, other parts of Europe also offer good scope for solar players like Enphase. Notably, SolarPower Europe’s first EU Market Outlook for Solar Power shows that 2019 was one of the best years for solar on record for the European Union, with 16.7 GW of installations in the region, representing 104% increase over 8.2 GW added in 2018. This made 2019 the strongest growth year for solar in the EU-28 since 2010.
To reap the benefits of the thriving growth opportunities from the European solar market, at the onset of September 2020, Enphase launched its IQ 7A microniverters in Europe. In August, Enphase and European solar module manufacturer, Sonnenstromfabrik (CS Wismar GmbH) entered into a strategic partnership to develop Enphase Energized AC modules (ACM). Further, to enhance its customer base, the company is expanding its sales force in all key regions of Europe.
Apart from its well established markets in Belgium and Netherlands,the company has been making distributor gains in new European markets, such as Germany, Poland and Spain. All these initiatives, like the latest partnership deal, are expected to boost Enphase’s customer base across Europe, thereby pumping up its profit.
Global Solar Boom
While Europe remains a lucrative market for solar players, the global solar market as a whole has been rallying over the past decade. Per a report by Fortune Business Insights, global solar power market size is projected to reach 4766.8 MW in 2026 from 2019, exhibiting a CAGR of 30.7%.
To reap the benefits of this expanding global solar market, Enphase Energy and other solar players are making every possible effort. As of Jun 30, 2020, the company shipped more than 28 million microinverters worldwide. It is set to launch IQ 8 PV, a grid-agnostic microinverter on the roof, which should expand its market share.
On the other hand, given the growing demand for solar modules, First Solar FSLR expects to increase its nameplate Series 6 manufacturing capacity to 6 GW by 2020 and 8 GW by year-end 2021. For 2020, JinkoSolar JKS projects total solar module shipments of 18-20 GW, indicating an improvement of 35% year over year.
During 2019, ReneSola SOL connected about 60 MW of projects. It expects project pipeline in core markets to reach 1 GW by the end of 2020.
Price Performance & Zacks Rank
In a year’s time, shares of Enphase have gained 159.7% compared with the industry’s rise of 76.8%.
The company 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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