Inverter manufacturer SolarEdge has posted record revenue and inverter shipment for Q3 due to its “strong momentum” in the European market.
Revenue in Europe increased by 90% compared to the same period last year and by 42% from Q2 2022, with record quarterly revenue in the region already shown since the beginning of the year and with strong performance in Germany – with 125% growth from the previous quarter – and the Netherlands in particular.
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SolarEdge expects the “strong momentum” in Europe to continue well over 2023 and has seen an elevated level of new orders, while Europe has been prioritised during Q3 – in particular the residential market – with the US revenue falling from Q2 2022, according to CEO Zvi Lando during a conference call.
However, the US commercial segment had a record inverter and optimiser shipment and for a fourth quarter in a row had double-digit growth in its megawatt shipments.
During Q3 2022, the company shipped 2.7GW of its inverters worldwide, increasing its record from the previous quarter where it passed the 2.5GW threshold for the first time, as shown in the chart below.
The Europe segment registered a record 1.4GW of all shipments, while the US was at 859MW during Q3 2022 and ‘rest of world’ at 470MW, within which Taiwan and South Africa had record revenues.
Commercial and residential were close to parity in Q3 with 52% and 48% share of revenues, respectively.
The record in inverter shipment has resulted in the company posting record revenue of US$836.7 million – of which US$788.6 million came from its solar segment – during Q3 2022, a 59% increase from the same period last year when it had revenues of US$526.4 million.
“We believe that the continued increase in manufacturing capacity in our existing manufacturing lines combined with our plans to establish a manufacturing footprint in the US will allow us to capitalise on the strong demand we are experiencing globally,” said Lando.
As demand is outpacing the company’s production capacity, SolarEdge is working hard to close the gap by ramping up capacity in its new facility in Mexico, according to Lando during a conference call.
Moreover, with the increased demand from the US market and the recent passing of the Inflation Reduction Act, the manufacturer aims to establish its manufacturing capacity in the US within 2023. The firm is in active planning and site selection process, added Lando.
However, the ongoing complaint filed by Ampt in August alleging parent infringement on power systems technology, could mean the company faces a potential US import ban. This depends on the decision from the International Trade Commission (ITC) after it launched an investigation on the matter earlier this year.
Conference call transcript from the Motley Fool.