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Enphase's (ENPH) Energy System Demand Intensifies in Oregon

Enphase Energy, Inc. ENPH recently announced that the increased adoption of the Enphase Energy System, powered by IQ8 Microinverters and IQ Batteries, has been noted in Oregon. The intensified demand exemplifies Enphase’s continuous efforts to rapidly expand in the United States with its new family of IQ8 Microinverters and Batteries.

Enphase Continues to Expand in the United States

Enphase earned 71% of its revenues from the United States in the last reported quarter. Its presence in the region continues to grow significantly, buoyed by the strong demand and the sell-through of microinverters in the region. Consequently, the company’s revenues in the United States increased 69% year over year in the last reported quarter.

Moreover, with the recently announced Inflation Reduction Act, Enphase has been actively looking at scaling the manufacturing capacity in the United States. The company also plans to open four to six manufacturing lines in the United States by the second half of 2023.

Considering the fast-paced growth globally observable in the solar market, enhancement in the manufacturing capacity may boost ENPH’s capability to flourish in the solar market. Moreover, Enphase may witness the intensified demand for its products going forward in other states, like the latest one.

U.S. Solar Market Boom & Peer Moves

The solar market of the United States continues to gain momentum and boasts the capability of expanding by leaps and bounds as the nation gradually transitions to renewable sources for energy needs. Per the report from Mordor Intelligence, the U.S. solar energy market is likely to witness a CAGR of 17.3% over the 2022-2027 period.

Such an expanding size of the market will not only benefit Enphase but also provide an opportunity for growth to other solar players, namely SolarEdge Technologies SEDG, First Solar FSLR and SunPower SPWR.

SolarEdge Technologies’ optimized inverter solutions address a broad range of solar markets. In the U.S. commercial segment, the company recorded a 10% increase in inverter and optimizer shipments from the last quarter. Moreover, the company expects this growth dynamic in the U.S. commercial market to continue in 2023.

The long-term earnings growth rate of SolarEdge stands at 31.8%. Shares of SEDG have risen 27.3% in the past six months.

First Solar is the largest U.S. solar module manufacturer. The company intends to invest approximately $1.2 billion in scaling its U.S manufacturing capacity. This may expand its domestic nameplate capacity to approximately 10.7 gigawatts in 2026.

The Zacks Consensus Estimate for First Solar’s fourth-quarter sales indicates an improvement of 9.2% over the prior-year reported figure. Shares of FSLR have delivered 46.9% in the past year.

SunPower is one of the most forward-integrated solar companies and continues to be the highest-rated solar company in the United States. The company added 23,100 customers in the third quarter, reflecting growth of 63% year over year. This expanded its total customer base to 463,600. The company expects residential customers in the range of 73,000-80,000 in 2022.

The Zacks Consensus Estimate for SPWR’s 2022 sales suggests a growth rate of 28.8% from the prior-year reported figure. The Zacks Consensus Estimate for its 2022 earnings indicates a growth rate of a solid 285.7% over 2021’s reported figure.

Price Movement

In the past year, shares of Enphase Energy have risen 21.7% against the industry’s decline of 19.4%.

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Zacks Rank

Enphase Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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First Solar, Inc. (FSLR) : Free Stock Analysis Report
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