SolarEdge's (SEDG) Storage System Made Available in Italy
SolarEdge Technologies Inc. SEDG recently announced that its first Commercial Storage System (CSS) for photovoltaic (PV) applications can now be ordered in Italy. CSS can be deployed in small or medium commercial solar installations.
Significance of the CSS
The CSS, unveiled in June 2023, marks the first storage solution available for commercial-scale solar applications in Italy’s market. The system is coupled with SolarEdge’s high-efficiency DC-optimized PV inverters and SolarEdge ONE for commercial and industrial applications.
The CSS comprises a 102.4 kilowatt-hour-rated battery cabinet and a 50 kilowatt (KW) battery inverter and is expandable up to a total capacity of 1 megawatt-hour (MWh) per site.
SolarEdge’s Opportunities in Europe
The rapidly increasing clean energy adoption is providing a competitive edge to the energy storage market. Consequently, nations across the globe are expanding their energy storage capacity to further boost their clean energy goals, with Europe being no exception.
Per a report by the Mordor Intelligence firm, Europe’s energy storage market is expected to witness a CAGR of more than 18% during the 2024-2029 period. In light of such growth expectations, it is reasonable to assume that SolarEdge’s expansion plans in Europe is prudent, including the latest efforts to deliver CSS in Italy.
Notably, the company already enjoys a strong presence in Europe, considering the fact that 64% of its total revenues came from the continent in 2023.
To this end, it is imperative to mention that SolarEdge’s CSS, which comes with a market-leading warranty of 10 years, is pre-assembled with the ability to support multiple energy optimization modes and use cases. Such remarkable features of this product should boost order growth for SEDG in coming years, backed by solid growth opportunities offered by Europe’s energy storage market.
Peer Moves
Other prominent solar players like Canadian Solar Inc. CSIQ, Emeren Group Ltd. SOL and Enphase Energy Inc. ENPH are also expanding their footprint in Europe to reap the benefits of the energy storage market’s prospects.
As of Jan 31, 2024, Canadian Solar had 23,387 MWh of battery energy storage development project pipeline in Europe, the Middle East and Africa region. Out of this, the company has an early-stage pipeline of 17,334 MWh.
CSIQ delivered an average earnings surprise of 56.24% in the last four quarters. Its share price has jumped 2.1% in the past five years.
Emeren Group is steadily gaining momentum in Europe’s energy storage solar market, with its presence in Poland, England, France, Spain and Italy. As of Nov 30, 2023, Emeren Group had 6,440 MWh of advanced-stage battery storage pipeline in Europe.
The Zacks Consensus Estimate for SOL’s 2024 sales indicates an improvement of 48.8% from the 2023 estimated figure. Its shares have risen 6.5% in the past five years.
In fourth-quarter 2023, Enphase Energy launched IQ8 Microinverters into more countries of Europe like Austria, Italy and Belgium. The European region accounted for 31% of ENPH’s net revenues in 2023. On Feb 26, 2024, Enphase started shipping its most powerful home battery to date, the IQ Battery 5P, for customers in Italy.
ENPH has a long-term (three-to five-years) earnings growth rate of 17.3%. The stock delivered an average earnings surprise of 7.24% in the last four quarters.
Price Performance
In the past month, shares of SEDG have lost 16% compared with the industry’s 11% fall.
Image Source: Zacks Investment Research
Zacks Rank
SolarEdge currently has 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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