SolarEdge (SEDG) Installs Newly Certified 330kW Inverter in US
SolarEdge Technologies Inc. SEDG recently installed its new high-power Direct Current (DC)-optimized 330 kilowatt (kW) inverter system for the first time in the United States. This inverter system, which comes with a UL1741-SB certification, can be deployed in both community and ground-mount solar projects.
Details of the Project
The first commissioned DC-optimized SolarEdge 330-kW inverter system in the United States is a 1 megawatt (MW) ground-mount solar system, which SEDG installed on a site owned by the Karuk Tribe in Northern California.
The inverter system can efficiently manage and distribute electrical power over long distances and reduce the Balance of System (BoS) costs. The project is expected to have an annual production capacity of 1,575,000 kW-hour of solar energy. It will also help achieve clear energy goals by reducing carbon emissions by around 1,018 tons yearly, thereby offsetting approximately 96% of the site’s annual electricity use.
Significance of the 330-kW Inverter
The high-power, three-phase DC-optimized SolarEdge 330-kW Inverter, coupled with SEDG’s H1300 Power Optimizer, helps overcome the challenges posed by shading and uneven terrain on expansive community solar sites.
With 99% efficiency, 200% DC-oversizing, 100% power at high-temperature levels, an integrated PID rectifier and up to 50% reduction in BoS costs, the system helps lower the levelized cost of energy.
SolarEdge’s Prospects in the Solar Inverter Market
In a bid to tackle the climate change issue, industries across the board have increasingly been involved in reducing their carbon emission, which has been driving the demand for clean energy solutions. Solar industry is one of the primary forerunners in the renewable energy market and thus has been witnessing solid traction in recent times. Consequently, solar inverters, which are crucial equipment used in solar installations, enjoy solid growth prospects backed by rising demand for solar energy, increasing installations of solar PV systems and government incentives.
To this end, a report from the Mordor Intelligence firm estimates the solar photovoltaic (PV) inverters market size to witness a CAGR of 4.73% during 2024-2029, with North America constituting a major portion of this market.
To reap the benefits of such solid growth opportunities offered by the solar inverter market, SolarEdge has been rapidly growing its operations.
During the third quarter of 2023, SolarEdge shipped 0.27 million inverters globally, representing a 3.5% increase year over year. The latest installation is another of SEDG’s efforts to expand its footprint.
Peer Moves
Other solar players in the industry that are undertaking expansion strategies to meet the growing demand of the solar inverter market are as follows:
Enphase Energy ENPH: Enphase Energy’s IQ8 is the world’s first grid-forming microinverter, with power of up to 384 watts. The company shipped more than 73 million microinverters as of Dec 31, 2023. On Jan 29, 2024, Enphase launched its IQ8 microinverters in the United States.
ENPH’s long-term (three-to five-years) earnings growth rate is 17.3%. The firm delivered an average earnings surprise of 7.24% in the last four quarters.
Canadian Solar CSIQ: Canadian Solar’s inverter portfolio includes the 350kW three-phase utility string inverter, the commercial three-phase string inverters and the single-phase string inverters for residential purposes.
The Zacks Consensus Estimate for CSIQ’s 2024 sales implies a rise of 1.2% over 2023’s estimated figure. The stock delivered an average earnings surprise of 67.89% in the last four quarters.
Price Performance
In the past month, shares of SEDG have gained 23.1% compared with the industry’s 22.8% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Pick
SolarEdge Technologies currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock in the same industry is Nextracker Inc. NXT, sporting a Zacks Rank #1.
NXT’s long-term earnings growth rate is 35.2%. The Zacks Consensus Estimate for fiscal 2024 sales implies a rise of 28.7% over the prior-year quarter’s reported figure.
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