Enphase (ENPH) Enhances Footprint in Spain's Solar Market

·3 min read

Enphase Energy, Inc.ENPH announced that it has witnessed an increase in deployment of residential solar energy systems, powered by its IQ 7+ and IQ 7A Microinverters, in Spain, which has expanded its footprint in this nation. This reflects Enphase’s highly growing customer base in international markets and its continuous efforts to expand in the overseas solar market.

Enphase’s Growth Prospects in Spain

Spain displays solid residential solar growth potential as homeowners hunt for a reliable and sustainable clean energy generation system as a substitute for highly-priced electricity. Also, a favorable policy to boost the development of solar projects further entails robust prospects for solar installations in the region.

Per the data from Spanish Photovoltaic Union (UNEF), Spain witnessed 1,203 megawatts (MW) of solar capacity addition in 2021, of which the residential sector constituted 32% of the capacity addition.

ENPH has been capitalizing on the growing demand, with nearly 1,000 solar installations in Spain being powered by its most advanced solar technology. This highlights the increased demand for Enphase products in the Spanish solar market.

As Spain looks to make a shift to renewable sources of energy to meet energy demand, the solar market in the country is anticipated to witness a CAGR of more than 10% over the period of 2020-2025, per a report from Mordor Intelligence.

Considering bright growth prospects of the solar market, Enphase may further witness the increased adoption of its products in Spain, which will bolster its international revenue prospects and boost overall growth.

Growth Outlook in Europe

Not only Spain but also the entire European Union embodies solid solar growth opportunities as solar installations are gaining momentum in the region. Per a Solar Power Europe report, double-digit growth in solar capacity additions in Europe is projected by the end of 2025. In this context, it is imperative to mention that the rapidly growing European solar market exemplifies immense opportunities for solar players like Enphase to expand their footprint in the region and capitalize on the growing demand.

Solar players who have already carved out a position in the European solar market to exploit the abounding growth opportunities are Canadian Solar CSIQ, ReneSola SOL and First Solar FSLR.

In March 2022, Canadian Solar signed two 10-year power purchase agreements with Axpo Italia for the purchase of 70% of the energy produced by two of its solar power plants of 84 Megawatt-peak (MWp) capacity.

The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings indicates solid growth of 264.6% from the prior-year reported figure. Shares of CSIQ have rallied 3.6% in the past six months.

In December 2021, ReneSola signed an agreement to sell a 12 MWp portfolio of projects in Spain, the Caravaca Project, which is the most advanced project of ReneSola, representing more than 300 MW pipeline of projects at different development stages in Spain.

The Zacks Consensus Estimate for ReneSola’s 2022 earnings indicates growth of 38.9% from the prior-year reported figure. Shares of SOL have appreciated 13.3% in the past three months.

In 2020, First Solar's advanced Series 6 photovoltaic (PV) solar modules were chosen by JP Energie Environnement to power its 59 MW DC Labarde solar power plant, the largest urban PV power plant in France.

First Solar boasts a long-term earnings growth rate of 9.5%. FSLR shares have returned 19.2% to its investors in the past month.

Price Movement

In the past year, shares of Enphase have rallied 18.9% against the industry’s decline of 18%.

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Zacks Rank

Enphase 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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