Enphase Energy (ENPH) makes rapid expansion across Europe

Enphase Energy, Inc. ENPH has been rapidly diversifying the portfolio of products it offers to the European Solar Market. Various instances over the past few months show how it has contributed to the rapid growth and demand for solar power in the continent.

In July 2023, the company announced that it had begun distributing its IQ Batteries to clients in Spain and Portugal. Along with this, its recent launches in France, the Netherlands and Switzerland, the IQ batteries now have an increased accessibility across the European market.

Enphase Energy’s prospects in the European Solar Market

Per SolarPower Europe’s report, the 27 EU Member States saw 41.4 GW of new solar PV capacity connected to their grids in 2022, a 47% increase from 2021.

Enphase experienced strong sales of microinverters in Europe in first-quarter 2023. During the past two months, it expanded its relationship with Baywa re to distribute IQ microinverters in Poland and with 4blue to distribute IQ microinverters and batteries in the Netherlands, Germany, Belgium and Luxembourg.

The SolarPower Europe’s report further estimates more than 50 GW deployment level in 2023 and more than double from 2022 to 85 GW in 2026.

Considering such abounding growth prospects offered by the European solar market and the latest supply announcements for its batteries and microinverters, we expect ENPH to witness solid revenue growth prospects from the Europe region.

Peer Moves

Other prominent players like JinkoSolar Holding Co., Ltd. JKS, SolarEdge Technologies Inc. SEDG and Emeren Group Ltd. SOL is also expanding its footprint in the European region.

JinkoSolar’s module shipments to Europe grew by more than 50% year over year in the first quarter of 2023. In June 2023, it announced the delivery of 220,000 Tiger Neo Modules to the Verila plant in Bulgaria.

The Zacks Consensus Estimate for JKS’ 2023 sales implies a rise of 32% over 2022’s reported figure. It delivered a trailing four-quarter earnings surprise of 194%.

SolarEdge’s first-quarter 2023 revenues increased 44.1%, year over year, primarily driven by an increase in the number of inverters and power optimizers sold, with significant growth in revenues from Europe. The revenue growth was also driven by the rise in the number of residential batteries sold primarily in Europe. In June 2023, at Intersolar Europe, SEDG launched its new Bi-Directional DC electric vehicle (EV) charger, which will enable home energy storage via EV batteries.

SEDG has a long-term (three-to-five years) earnings growth rate of 33.1%. The Zacks Consensus Estimate for 2023 sales implies a rise of 32.6% over 2022’s reported figure.

Emeren had 1,737 MWh of storage pipeline and 2,272 megawatt mid-to-late stage projects pipeline in Europe as of Mar 31, 2023. In June 2023, SOL joined forces with Matrix Renewables to build a portfolio of Battery Energy Storage Systems, with a capacity of up to 1.5 GW, in Italy.

The Zacks Consensus Estimate for SOL’s 2023 sales implies a rise of 97% over 2022’s reported figure. It delivered a trailing four-quarter earnings surprise of 31.3%.

price performance

Over the past month, shares of ENPH have gained 8.3% compared with the industry’s 10.4% increase.

Zacks Investment Research

Zacks Investment Research

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Zacks Rank

Enphase 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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