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Enphase (ENPH) Energy System Demand Intensifies in Florida

Enphase Energy, Inc.ENPH recently revealed that Florida has been increasingly adopting its Enphase Energy System, with homeowners striving to reduce their dependence on the grid as they approach the hurricane season.

What’s Driving the Demand?

Florida offers a huge platform to battery storage makers like Enphase as the region is susceptible to intense storms and consequently prolonged power outages. In such a scenario, ENPH’s technologically advanced energy system that comes with benefits well-suited to meet householders needs for clean, reliable and safe energy provides homeowners with accessibility to backup power when they need it the most.

Florida customers can opt to install Enphase’s revolutionary IQ8 Microinverters, which can provide Sunlight Backup. Enphase’s IQ8 Microinverters have the capability of forming a microgrid during a power outage using only sunlight, thus providing backup power even without a battery. Additionally, it offers a seamless power transfer without any reliance on elevating fuel prices.

No doubt such remarkable features must have been boosting the demand for Enphase’s products in the Sunshine State, which is prone to power outages during severe weather conditions, especially hurricanes.

Enphase’s Growth Prospects in Florida

The current expansion in Florida’s market broadens scope for ENPH to further gain from the opportunistic solar market, buoyed by its impressive range of products. Looking ahead, per the U.S. Energy Storage Monitor report from the Energy Storage Association and Wood Mackenzie’s latest report, the deployment of battery storage in Florida is estimated to increase almost seven-fold by the end of 2026.

Considering such bright prospects, we can expect Enphase to witness further deployment of its products in Florida’s solar market, which will thereby boost its revenue generation prospects.

U.S.Solar Market Boom

Per the latest energy report from the U.S. Energy Information Administration, the utility-scale solar generation from June to August 2022 is estimated to escalate by 10 million megawatt hours compared with the same period last summer. Moreover, in June 2022, the U.S. electric power sector is estimated to increase by 31% in solar capacity to reach 65 gigawatts of utility-scale solar-generating capacity since June 2021.

Such growth trends exemplify the nation’s increased pace of embracing solar power to fulfill energy needs. This brings the spotlight on major solar players in the industry like Enphase Energy, Canadian Solar CSIQ, First SolarFSLR and Sunrun RUNwho can fortify their business in the opportunistic solar market.

In May 2022, Canadian Solar announced the completion of the construction of a 100-megawatt (MW) renewable solar power plant near Ruleville in the Mississippi Delta, providing clean energy for Entergy Mississippi's 461,000 customers. The Sunflower Solar Station is the largest solar installation in Mississippi and provides enough energy to power 16,000 homes.

The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings suggests a growth rate of 170.8% from the prior-year reported figure. Shares of CSIQ have rallied 8.3% in the past three months.

In May 2022, First Solar signed an agreement with Scout Clean Energy to supply 378 MW of its advanced thin-film photovoltaic solar modules.

First Solar boasts a long-term earnings growth rate of 13.2%. Shares of FSLR have rallied 3.3% in the past three months.

In May 2022, Sunrun announced the completion of a new solar installation serving 70 affordable rental homes in San Jose, CA. The Don de Dios Apartments solar project will provide 136 kilowatts of clean energy.

The Zacks Consensus Estimate for Sunrun’s 2022 sales suggests a growth rate of 17.2% from the prior-year reported figure. RUN shares have rallied 5.4% in the past three months.

Price Movement

In the past year, shares of Enphase Energy have rallied 48.3% against the industry’s decline of 12.3%.

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Zacks Rank

Enphase Energy 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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