SolarEdge has closed its utility-scale battery storage division, resulting in a layoff of roughly 12% of its total workforce.
The NASDAQ-listed solar PV and energy management solutions company, headquartered in Herzliya, Israel, announced the discontinuation of the division yesterday (27 November).
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The move reduces the company’s headcount by around 500 employees, most of whom are based in South Korea, where SolarEdge acquired a majority stake in industrial and utility battery manufacturer Kokam in 2019.
According to a Form 8-k filed with the US Securities and Exchange Commission (SEC), “almost all” impacted staff will be dismissed in the first half of 2025.
The move is expected to incur costs of up to US$99 million in aggregate pre-tax discontinuation and asset-related charges and between US$36 million and US$48 million for costs, including severance packages and non-cancellable purchase orders.
Most of the employees to be let go work in manufacturing, SolarEdge said. The company is best known for its activities in the residential and commercial & industrial (C&I) solar PV market, including the development and production of power optimisers and inverters.
The closure of the company’s energy storage division is part of a strategic move to “focus on its core solar activities,” although SolarEdge said its solar business will continue selling battery products into the residential and C&I space.
It was not clear from announcements whether those products for distributed applications, including cells, will be supplied from SolarEdge in-house production facilities.
