Enphase Energy, Inc. (ENPH) and SolarEdge have both announced the expansion of their US manufacturing operations. Enphase Energy has begun shipments of its IQ8 Commercial Microinverters from its manufacturing facility in Arlington, Texas [8ae93c87]. Meanwhile, SolarEdge has started shipping products from its second US manufacturing facility in Seminole, Florida [ce7fd7c5].
Enphase Energy's IQ8 Commercial Microinverters are designed to support 208 V commercial installations for small- and medium-sized businesses. The microinverters simplify the design and installation process, improve energy harvest, provide more granular monitoring, and offer industry-leading safety through their safer AC architecture. The IQ8P-3P Microinverters are compatible with a wide range of solar panels up to 640 W [8ae93c87].
SolarEdge's Florida facility is expected to produce approximately 2 million domestic content Power Optimizer units per quarter when fully ramped. The company also plans to produce DC-optimized inverter systems for residential and commercial applications that meet the requirements of the domestic content definition set forth by the Treasury [ce7fd7c5].
Both Enphase Energy and SolarEdge are expanding their manufacturing operations in response to the growing demand for solar energy. The price per kWh of solar energy is at record lows, positioning it as the predominant form of power provision through 2050. Enphase Energy and SolarEdge are capitalizing on this trend by increasing their production capacity and creating new jobs in the United States [9d0d5a98] [ce7fd7c5].
Enphase Energy's IQ8 Commercial Microinverters were originally launched in North America last year and manufactured outside the United States. The recent shift to US manufacturing reflects Enphase Energy's commitment to domestic production and its desire to simplify the supply chain. Enphase Energy is hosting an event at its Arlington, Texas manufacturing facility on Thursday, July 11, 2024, to celebrate the launch of the IQ8 Commercial Microinverters [8ae93c87].
SolarEdge's first US manufacturing facility in Austin, Texas, opened in late 2023 and has already reached a quarterly manufacturing run rate of 50,000 residential Home Hub Inverters in Q2 2024. The addition of the Seminole, Florida facility will further increase SolarEdge's production capacity and support its goal of meeting domestic content requirements. The company has shipped the first 20,000 'domestic content' Power Optimizers from its Florida facility in Q2 2024. The Florida facility is expected to produce approximately 2 million domestic content Power Optimizer units per quarter and plans to begin commercial inverter and Power Optimizer production in early 2025. The manufacturing plans are expected to generate 1,750 new jobs in the U.S. by the end of 2024 [8ae93c87] [ce7fd7c5] [2bade9c0].
SolarEdge Technologies has created 1,500 new jobs in the U.S. and expects to create a total of 1,750 new jobs by the end of 2024. The company has opened manufacturing facilities in Austin, Texas and Seminole, Florida. The Austin facility has reached a quarterly production rate of 50,000 residential Home Hub inverters, while the Seminole facility is expected to produce about 2 million domestic content power optimizer units per quarter. SolarEdge intends to produce DC optimized inverter systems that meet the requirements of the domestic content bonus set forth by the Inflation Reduction Act (IRA). The company plans to produce bonus-qualified residential inverters in Q4 2024 and qualified commercial scale inverters in 2025. SolarEdge's U.S. manufacturing facilities will enable its systems to qualify for the full 35.6% of domestic content provided by a module-level power electronic (MLPE) system and support its customers' ability to reach the required 40% domestic content threshold. [145cd594]
While Enphase Energy and SolarEdge are optimistic about the future of the solar energy market, they also acknowledge the challenges posed by macroeconomic and geopolitical conditions, supply chain disruptions, inflation, rising costs, and regulatory uncertainties. These factors have impacted their financials and outlook, and investors are advised to exercise caution and diversify their portfolios [9d0d5a98].