Enphase almost doubles revenue in Europe amid rising interest in home electrification

Enphase shipped 1,213MWdc of inverters in Q2 2022. Image: Enphase Energy.

Microinverter supplier Enphase Energy almost doubled its Q2 2022 revenue year-on-year as homeowner demand for self-consumption increases on the back of rising energy prices.

The California-headquartered company’s revenue in Europe was up 89% on the same quarter last year and 69% on Q1 2022, led by strong demand for microinverters in the Netherlands, France, Germany, Belgium, Spain and Portugal.

“We have an incredible opportunity in Europe,” Enphase CEO Badri Kothandaraman said on a conference call with investors, adding that there is a growing demand for home electrification in the region, driven by both the proliferation of electric vehicles (EVs) and natural gas shortages.

The company is expecting revenue growth in Europe to continue into Q3 as it forecasts a 40% jump on Q2 figures.

A research note published by analysts at financial services firm Wells Fargo said that with Enphase’s significant European expansion underway, the company’s growth in the continent is likely to remain elevated into Q4 as it deploys additional battery supply into the region.

Enphase is on track to start manufacturing products at a factory in Romania in Q1 2023, enabling faster shipments to European markets.

Kothandaraman said production at the Romania facility will increase the company’s quarterly microinverter capacity across all its contract manufacturing facilities from around 5 million to 6 million.

Globally, Enphase’s Q2 revenue was above the company’s prior guidance, rising 68% year-on-year to US$530.2 million, while gross margin was 41.3%.

The firm shipped 1,213MWdc of inverters in Q2 2022, a 52% jump year-on-year, while shipments of the company’s IQ Battery increased three-fold to 132.4MWh.

This year has seen Enphase complete its acquisition of EV charging station manufacturer ClipperCreek, with Enphase co-founder Raghu Belur telling PV Tech Premium earlier this year the company is accelerating efforts to develop bi-directional EV charging.

Kothandaraman said during the conference call that the company is on track to manufacture Enphase branded EV chargers at its contract manufacturing facility in Mexico this quarter, helping it to scale and drop costs.

Enphase is forecasting Q3 2022 revenue to be US$590 – 630 million and gross margin of 38 – 41%.

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