Enphase sells US commercial O&M division

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Despite just reporting its second highest quarterly figures to date, Enphase is selling its US O&M division, acquired from Next Phase Solar. Source: Enphase Energy

Enphase Energy has continued its strategy of restructuring due to a reported competitive environment, this time by selling its commercial O&M division. The residential portions will be retained by Enphase.

The commercial O&M division, originally acquired from Next Phase Solar, was sold to MaxGen Energy Services, a major O&M operator in the US.

The microinverter producer has been speculated to be under financial constraints after receiving a US$25 million secured term loan from Tennenbaum Special Situations Fund IX. Although Enphase stated the fund was for general corporate purposes, the lender is known to specialise in “companies undergoing operational, financial or industry change”.

Indeed, in May, Enphase announced aggressive price declines on its Gen 4 microinverters, in order to regain lost market share – which resulted in gross margins of 18.3%, down from 24.5% the previous quarter.

Therefore, it may not be surprising that the company is selling its US commercial services division, despite a burgeoning O&M sector being taken more seriously across the States and in the European solar industry.

Enphase’s more aggressive pricing strategy resulted in a 10% increase in shipments in the third quarter of 2016 as revenue reached US$88.7 million, which equated to its second highest quarterly shipment figures. 

The company had just started sales of its AC battery storage solution, which is being rolled-out to major markets over the next few quarters. 

Enphase exited the third quarter of 2016 with a total cash balance of US$24.1 million.

This story has been amended to clarify it was soley the commercial O&M divsion that was sold to MaxGen Energy Services.

Read Next

March 25, 2021
Thin-film laser systems equipment supplier LPKF Laser & Electronics suffered from delays in receiving new expected orders from two long-stand customers last year.
March 23, 2021
Lightsource bp has been selected to build, own and operate seven solar arrays in Pennsylvania that will provide nearly half of the state government’s electricity.
March 4, 2021
A round-up of the latest solar project news from around the world, including updates from Hanwha Q CELLS and Capital Dynamics.
PV Tech Premium
March 2, 2021
With three years of financial and business data available, we can start to analyse a number of possible trends, one of these is the changing landscape surrounding Sunnova's supplier base for PV modules, inverters and energy storage.
March 1, 2021
Xcel Energy has announced plans to double its renewables and battery storage capacity in Colorado by 2030, as the utility progresses with efforts to reach 100% carbon-free electricity generation across its service area by 2050.
February 24, 2021
Microinverter supplier to use proceeds to repurchase notes due 2024 and 2025 as well as other corporate purposes

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 13, 2021
Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET