Enphase revenues rise but shipments dip as supply chain constraints persist

An Enphase microinverter being installed. Image: Enphase Energy.

Enphase Energy shipped fewer microinverters in Q2 2021 than in the preceding quarter as supply constraints continued to bite, but the manufacturer still managed to boost revenue sequentially.

Enphase shipped 2,362,401 units in Q2 2021, equivalent to about 796MWdc, down roughly 4% on the 830MWdc it shipped in the prior quarter. But the company reported a 4.7% rise in quarterly revenues, reaching towards the top end of its guidance at US$316.1 million.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The company’s non-GAAP margin also rose marginally to 40.8%.

With US residential solar originations soaring year-on-year, and global shortages of semiconductor chips dampening manufacturing output, demand continues to be “well ahead” of supply, Enphase said. In Q2 Enphase derived 81% of its revenue from the US, a figure which would have been higher were it not for supply chain constraints. This resulted in just a 3% sequential uplift in revenue from the region, however European revenues were up 16% sequentially, lifting the region to a new record.

In the second quarter Enphase was beset by supply constraints related to the AC FET drivers used in its flagship microinverter products. Enphase had two suppliers of these drivers through most of the second quarter but added a third towards the end of the period, with a fourth expected to be added in Q3 2021.

These additions, chief executive Badri Kothandaraman said, would ease supply constraints throughout the second half of the year. While supply disruptions are expected to continue into Q3, by Q4 Kothandaraman said he was “cautiously optimistic” that supply would be “significantly better”.

Indeed, in an analyst call Kothandaraman said he expected the inverter manufacturer to exit Q4 2021 with the capacity to manufacture 5 million inverter units per quarter, bolstered by additions to its manufacturing line in Mexico and India.

Supply constraints are, however, having a further impact on the rollout of its next generation of microinverters, the IQ8. Shipments of the IQ8, aimed at residential installations, and the IQ8D, which is targeted at C&I customers, are to commence in Q3 and Q4 respectively, however the company said it would now be ramping manufacture of these products more cautiously owing to supply concerns.

With supply chain concerns beginning to ease, albeit later in the year than Enphase initially expected, revenue is expected to grow as the year progresses and Enphase is forecasting for Q3 2021 revenue to fall in the US$335 – 355 million range.

Enphase was bolstered by incremental growth from its domestic energy storage product, which shipped 43MWh in Q2 2021. Launched in July last year, Enphase has forecasted for 60 – 70MWh of shipments in Q3 2021 and the company wants to take its manufacturing capacity to 120MWh per quarter. The manufacturer is currently stymied in energy storage by long product lead times, currently between 12 – 14 weeks. Kothandaraman told analysts it was Enphase’s intent to reduce this to below 10 weeks by the end of the year by making improvements to both the engineering process and in logistics too.

Enphase’s storage proposition was also boosted by the company’s first move into grid services offerings. Customers in Connecticut, Massachusetts and Rhode Island can now earn up to US$1,500 per year by allowing utilities to access their capacity through Enphase’s ConnectedSolutions programme.

Revenue was also aided by above-expectations contributions from two recent acquisitions – system design software providers Sofdesk and Noida which Enphase said were now fully integrated into the business, with new products set to be released “as soon as possible”.

8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

May 21, 2024
The ISO has granted DMEGC Solar its ISO 14067 certification, to hold it to high standards of carbon footprint reporting.
May 17, 2024
The US Department of Commerce (DOC) has initiated investigations into solar cell imports from Southeast Asia under the antidumping and countervailing duty (AD/CVD) tariffs.
May 16, 2024
French renewables company Voltalia has begun construction on a 126MW solar PV project in Uzbekistan.
May 10, 2024
Dutch-Norwegian floating solar company SolarDuck and real estate firm Tokyu Land have completed an offshore floating solar PV (FPV) project in Japan.
May 8, 2024
London-headquartered renewables developer Oracle Power has begun feasibility studies for a 1.3GW solar, wind and battery energy storage system (BESS) project in Pakistan.
April 30, 2024
With more than 1TW of solar waiting for grid connection, PV Tech Premium looks at where the PV capacity is queued up in the US.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 29, 2024
11am (EDT) / 5pm (CEST)
Solar Media Events
June 4, 2024
London, UK
Upcoming Webinars
June 11, 2024
3:00 PM (BST) / 4:00 PM (CEST)
Solar Media Events
July 2, 2024
Athens, Greece