SolarEdge cites slowdown in US residential market

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

PV inverter firm SolarEdge Technologies reported fiscal fourth quarter revenue of US$124.8 million, which was at the low end of guidance, due to a slowdown in the US residential market, its biggest market for the company. 

High profile customers such as SolarCity and Vivint Solar have seen residential installations stall with both companies lowering installation guidance for 2016. 

SolarEdge inverter sales in the US accounted for around 68% of total sales in its fiscal year.

Guy Sella, founder, chairman and CEO of SolarEdge said in an earnings call: “This quarter we were impacted by the slowdown in business in the US residential market that affected the large residential installers in the last two quarters to three quarters. Since we have the largest market share in the residential segment in the US, we're naturally impacted by what we believe is a temporary market adjustment to last year's ITC changes.”

Sella admitted in the call that total revenue in its fiscal fourth quarter from the US had declined over the previous quarter.

Sella also noted the earnings call that he thought the bottom in US residential market had been reached in the second quarter as orders had starting improving from a number of large installers.

FYQ4 financials

SolarEdge reported quarterly total revenue of US$124.8 million, compared to US$125.2 million in the previous quarter but up 26.8% from the prior year period.

Despite the weakness in the US market, SolarEdge said it increased sales across other countries such as The Netherlands, France and Australia. Inverter shipments in the quarter were 427MW. The company shipped a total of 1.48 million optimizers and 58,000 inverters in the quarter.

GAAP gross margin was 31.4%, down slightly from 32.5% in the prior quarter and up from 28.7% in fiscal Q4 2015. Management noted that ASP declines remained within expectations, slightly offset by continued product cost reductions and larger scale and automated production.

he company shipped a total of 1.48 million optimizers and 58,000 inverters in the quarter. Image: SolarEdge

2016 fiscal full year financials

SolarEdge reported fiscal 2016 revenue of US$489.8 million, a 51% increase compared to revenues of US$325.1 million for fiscal 2015. 

Sales of PV module optimizers represented 50% of total revenue, while inverter sales contributed 45.7% of the total. SolarEdge noted that recognition of revenue from cloud-based monitoring portal services and related products accounted for the balance.
On a geographical basis revenue from the US market accounted for of 68% of the total revenue compared to 73% in fiscal 2015. Sales in Europe accounted for 23% in fiscal 2016, compared to 20% in 2015.

Management noted that it had steadily increased its market share in Germany, which had past the 10% mark in year. 

Gross margins for fiscal 2016 were 31%, compared to 25.2% in fiscal 2015. The margin improvements were said to be due to overall cost reductions in manufacturing and distribution.

SolarEdge reported fiscal 2016 revenue of US$489.8 million, a 51% increase compared to revenues of US$325.1 million for fiscal 2015. Image: SolarEdge


SolarEdge guided fiscal first quarter sales to be in the range of US$130 million to US$139 million and gross margins to be within the range of 30% to 32%.

Read Next

May 6, 2021
Sunrun has increased its guidance for 2021 after a first quarter performance which has put the company on track to record its best ever year, CEO Lynn Jurich said.
PV Tech Premium
May 4, 2021
Major PV inverter manufacturer SolarEdge Technologies has guided a return to overall business growth in 2021, due primarily to strong market demand in Europe and the US as well as the rollout of its residential energy storage product.
April 15, 2021
Israeli developer Solegreen has invested US$104 million in solar installer Kuubix to help it pursue an "aggressive" expansion strategy across its core markets in the US.
PV Tech Premium
March 23, 2021
PV Tech delves into the performance of the top five publicly-listed US residential solar installers – Tesla, Sunrun, SunPower, Vivint Solar and Sunnova – detailing how they grew their market share in 2020, how regionality affected installs last year, and what hurdles the sector can expect in 2021.
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.
February 17, 2021
Leading US residential solar installer to open branch in Fort Lauderdale, creating new solar jobs in the state

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021