SolarEdge posts record quarterly revenue as European shipments soar

Facebook
Twitter
LinkedIn
Reddit
Email
SolarEdge shipped 2,130MW of inverters in Q1 2022. Image: SolarEdge.

Inverter manufacturer SolarEdge benefited from high demand for its products in Europe to increase revenues to a quarterly record while navigating a shortage of electronic components.

However the company experienced strong margin pressure throughout the quarter as it relied on air freight to sate European demand and other supply chain constraints, which it now expects to last long into the year.

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

Q1 revenues were US$655.1 million, up 62% on the same quarter last year, as the company shipped 2,130MW of inverters, 53% of which were for the residential segment and 47% for the commercial sector.  

SolarEdge CEO Zvi Lando said the firm’s performance in Europe during Q1 tends to be lower than other quarters, but this year it saw a “significant increase in demand” as it shipped 1.1GW of inverters in the region, a 53% jump on the same quarter last year.

Speaking during a conference call with investors, Lando said that considering the current dynamics in Europe of elevated electricity prices, supportive government initiatives and the company’s historically strong position in the region, management expects “strong growth momentum in Europe to continue”.

Alongside a healthy performance in larger European markets such as the Netherlands, Germany and Italy, SolarEdge has also benefited from a drive to increase solar installations in countries such as Austria, Switzerland, Sweden and Poland, according to Lando.

He said the drive to ramp up deployment is taking place because those countries are affected by higher electricity prices, adding: “And if you assume that those electricity prices are not going to go down anytime soon, then the expectation is for this momentum to continue.”

To meet high demand in Europe, SolarEdge shipped additional products by air, which put pressure on its gross margin, which fell from 34.5% in Q1 2021 to 27.3% in the latest quarter.

Management revealed gross margins were impacted by increased shipping expenses, both on finished goods and raw materials. This trend is expected to continue into Q2 and ease from Q3 onwards as it expands manufacturing output in Mexico and decreases the portion of Chinese-made products for the US market.

According to Lando, the company is facing three main challenges as it builds its inverter, optimiser and battery capacity to meet demand: component availability, COVID-related disruptions impacting raw material and component suppliers and longer logistic routes affecting both incoming supply to manufacturing sites and finished good shipments.

He said while the company does not have clear visibility on when the shortage of components will stabilise, it is optimistic that its work in qualifying additional component suppliers and aligning short- and long-term forecasts with its suppliers will ease the constraints toward the end of the year.

Rival inverter manufacturer SMA Solar Technology warned in March that it expected a shortage of electronic components to continue in the following months after its 2021 financial results were impacted by a lack of electronic chips.

For Q2 2022, SolarEdge forecasts revenues to be within the range of US$710 – 740 million, which would represent a significant increase on the company’s performance in Q2 2021.

Conference call transcript from the Motley Fool.

Read Next

August 8, 2025
US solar tracker manufacturer Array Technologies has posted revenue of US$362.2 million in the second quarter of this year.
August 8, 2025
SolarEdge posted inverter shipments of 1.19GW in the second quarter of this year, alongside BESS sales of 247MWh.
August 7, 2025
US residential solar installer Sunrun says it has positioned itself to continue generating strong financial returns after the passing of the 'One Big, Beautiful Bill'.
August 7, 2025
Despite severe flooding in the Waiotahe Valley in New Zealand, Lodestone Energy has confirmed that its 42MW Te Herenga o Te Rā solar PV power plant has continued operations.
August 6, 2025
US tracker manufacturer FTC Solar has posted US$19.9 million in revenue in the second quarter of 2025, up year-on-year for the second quarter in a row.
August 4, 2025
Brookfield Renewable earned more than US$400 million in FFO at its renewable generation assets in the second quarter of 2025.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines