Discover our upstream and downstream technical journals
Image: Enphase Energy.

Image: Enphase Energy.

Microinverter supplier Enphase Energy saw its Q2 revenue shrink 6% year-on-year as it was affected by reduced demand as a result of COVID-19.

Total revenue for Q2 stood at US$125.5 million, 39% lower than the US$205.5 million reported in the previous quarter and down 6% on the corresponding period a year ago.

Microinverter shipments were down 45% from Q1 to 355MW, representing around 1.09 million units, and were a reduction on the 416MW shipped in Q2 2019.

California-based Enphase also said it posted a GAAP net loss for Q2 2020 of US$47.3 million, compared to net income of US$68.9 million for the first quarter of 2020.

In a conference call with analysts, Enphase CEO Badri Kothandaraman said the company did well to navigate the “difficult macro environment” caused by coronavirus.

“COVID-19 created a significant downward pressure on demand during the second quarter of 2020,” he said. “With many countries implementing shelter-in-place restrictions, all aspects of daily life were impacted.”

While the US market was the company’s hardest-hit region as a result of solar insulation shutdowns in California and several north-eastern states, Europe stood out as a strong performer, with revenues increasing 8% on Q1.

With distributor gains made in new markets such as Germany, Poland and Spain as well as the firm's existing markets of the Netherlands and Belgium, Enphase is now expanding its sales force in all key regions in the continent – and at a higher amount than was previously panned.

Kothandaraman expects the company “to grow significantly” in Europe during Q3 but is doubtful that its target of doubling revenue in the market on an annual basis will be achieved.

During the second quarter, Enphase began shipping its Encharge storage system featuring Ensemble energy management technology. The Enphase Encharge 10 and Encharge 3 storage systems offer scalable battery storage capacities of 10.1kWh and3.4kWh respectively.

The company also announced in June a collaboration with module producer Q CELLS to develop an AC module aimed at the US residential solar market. Combining Enphase’s IQ microinverters and Q CELLS’ ‘Q.ANTUM DUO’ monocrystalline half-cell technology, the new Q.PEAK DUO BLK-G6+/AC modules began shipping last month.

Enphase started to see activity pick up toward June as installers become more proficient in closing online sales and as building departments accelerated online permits.

The company expects Q3 revenue to be in the range of US$160 million – 175 million, lower than the US$180.1 million recorded in the same quarter last year.

“We are optimistic about the resurgence in market demand for the third quarter and excited about the ramp of our Encharge battery storage systems,” said Kothandaraman.

Transcript from Seeking Alpha.

Tags: enphase energy, us, residential solar, north america, microinverter, inverter, europe, covid-19, covid-19 recovery

Solar Media Events

Solar Finance & Investment Europe

Feb 03 - Feb 04, 2021

London, UK

The business of solar is changing, as the industry scales up, technology, IT and new players to the market will add complexity. This sparks a host of opportunities such as co-location of solar and storage and the rise of unsubsidised solar projects as well as challenges which will question the very business model of European solar asset owners. Solar Finance & Investment Europe is the meeting place for institutional investors, sovereign wealth funds, solar, wind and storage funds and large energy buyers to do business.

Find out more

Solar Media Events

Solar & Storage Finance USA Virtual Summit

Nov 17 - Nov 19, 2020

Virtual Event

Solar & Storage Finance USA Virtual Summit, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2020 for its 7th edition!

Find out more

Comments