Enphase’s products serve as a great example of a commercialized technology that highlights RockPort’s investment thesis in the photovoltaic industry: a product that lowers the levelized cost of energy. Through the use of its patented technology, Enphase is the first company to come to market with a reliable microinverter which increases energy output, eliminates the single point of failure, and reduces the installation cost of a solar system. RockPort led the Series B round in Enphase because we believed in a superior management team, the compelling value proposition, and the large and growing markets. We were able to leverage our history of solar investment and industry relationships to think through effective growth strategies and to introduce potential customers.
Minor contention point on: "and reduces the installation cost of a solar system."
How does it reduce the cost? You can install a string inverter cheaper materials-wise and slightly faster labor-wise than an Enphase environment. A good string inverter at a site without shade issues is not a bad choice at all. Can you point me to a study that shows a field-study of the same set of modules using Enphase versus string inverter and energy harvested by micro-inverters that beats the top models of string inverter over the life of the system (or let's say first 5 years).
ENPH needs to become profitable or the company will have a hard time supporting the 25-year warranty they have on the 215 units if they have to be rescued or sold-off, etc.
What is the timeframe for ENPH profitability as a firm? Do they have a counter-measure if the Chinese-made micro-inverter costs go up if there is a monetary imbalance in USD-Chinese currency exchange value? Will they have a USA-made microinverter for people and projects who want USA-made parts?
I was looking at ENPH's postings of financials on their website. That is quite a high R&D number spent per quarter for a company with just a couple products already available and some software for monitoring. Is the R&D spend (OpEx) continuing ongoing with new product introductions? Seems excessively high.