SolarEdge, an Israeli supplier of solar inverters and energy management solutions, reported a quarterly decline in shipments in the second quarter of 2024 of 873 MW.
The decline is sharper compared to the same period last year, when the company shipped more than 4.3 GW of inverters in the second quarter of 2023.
Since 2020, SolarEdge inverter shipments have been largely dominated by the European market, but in the second quarter of 2024, all three regions (Europe, US and Rest of World) appeared to dominate shipments to the rest of the world. The region with the largest volume reached 333 MW.
This is because quarterly inverter shipments to Europe fell from 443 MW in Q1 2024 to 278 MW in Q2 2024, while US inverter shipments stood at 261 MW in Q2 2024.
In terms of segments, commercial and industrial (C&I) remains SolarEdge’s leading segment, although slightly lower than the previous quarter. Deliveries in the commercial and industrial segment fell from 640 MW in the first quarter of 2024 to 564 MW in the second quarter of 2024. Deliveries to the residential market increased by 7 MW compared to the previous quarter, with 309 MW of inverters delivered in the second quarter of 2024.
SolarEdge CEO Zvi Lando said the company aims to begin supplying domestically produced batteries to the U.S. residential market in early 2025, as the company has already begun its transition to residential inverters and optimizers.
In terms of domestic U.S. production, the company produced nearly 450 MW of single-phase inverters at its Austin, Texas plant in the second quarter of 2024.
“We believe that our US-made inverters and optimizers, combined with US-made shelf equipment available in the market, allow our TPO customers to benefit from selective safe harbor and thereby qualify for today’s 10% share of ITC’s domestic content. We plan to launch commercial content for the domestic market by the end of this year,” Lando said.
SolarEdge will unveil its next-generation single-phase residential system for the North American market in September at the RE+ show in Anaheim, California. The new products are expected to be released in the second half of 2025 and will include inverters, battery backup interfaces and instrument collars.
Regarding the US C&I market, Lando said: “Sales in the first quarter increased 18% sequentially and were 13% higher than the seasonal low for the same period last year. We continue to be encouraged by the potential of the U.S. industrial and commercial market. There is growing interest in the market as large enterprise customers to standardize their global portfolio of our solutions due to our panel-level monitoring, advanced security capabilities, advanced cybersecurity capabilities and highly sophisticated energy management systems.”
This is in stark contrast to the sluggish performance of European industrial and commercial markets over the past three quarters. Lando added that the epidemic is not expected to accelerate in most countries in the second half of the year.
“However, in the Italian market, a special incentive program equivalent to the green housing incentive program, which has significantly boosted the Italian housing market in recent years, is in the final stages of regulatory approval,” explains Lando.
While still missing 2023 results, SolarEdge’s revenue was up from the previous quarter, with Q2 2023 revenue approaching $1 billion. In the second quarter of 2024, revenue increased to $265 million from $204 million in the previous quarter.
“We are encouraged by our second quarter results, which grew 30% sequentially and sales of our solar products to distribution customers increased 18%,” Lando said.
“While we expect shortfalls to continue into the third quarter, we believe the momentum of our core business and the actions we have taken to increase market share and develop new growth areas will continue once inventory is cleared in the first quarter. Will bring income. will return to higher levels by half of 2025.”
In its third-quarter 2024 guidance, Solaredge projected revenue in the range of $260 million to $290 million, with revenue from its solar business in the range of $245 million to $280 million.
Post time: Aug-13-2024