Israeli solar inverter manufacturer SolarEdge posted strong financial results for the second quarter of 2023 with record revenues from the solar segment of US$947.4 million.
The company’s revenue in Q2 2023 reached US$991.3 million, up 5% from US$943.9 million in the prior quarter and up 36% from US$727.8 million in the same quarter last year. The solar segment accounted for a large part of the company’s revenue, as the segment’s revenue reached US$947.4 million, increasing by 4% from US$908.5 million in Q1 2023 and up 38% from US$687.6 million in the same quarter last year.
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Zvi Lando, CEO of SolarEdge, said that solar revenues from the US for Q2 2023 were US$195.6 million, a 23% decrease from the last quarter and a 37% decrease from the same quarter last year, representing 21% of the company’s solar revenues. Solar revenues from Europe were a record US$688.5 million, a 19% increase from the last quarter and a 112% increase from the same quarter last year, representing 73% of our solar revenues.
Germany was the company’s major market as revenue closed to US$300 million, growing by 64% quarter-on-quarter. Sweden (106%), the UK (50%), and Slovenia (54%) also witnessed impressive quarterly growth.
Net income for Q2 2023 was US$119.5 million, down 14% from US$138.4 million in Q1 2023 and up 692% from US$15.1 million in the same quarter last year.
“We are pleased with our results for the second quarter, in particular our strong performance in Europe in both the residential and commercial solar segments. While the US residential solar market is currently seeing some headwinds primarily related to higher interest rates, we are navigating through this period by leveraging our geographic and multi-segment strengths in the solar markets and expect to benefit from the positive long-term outlook for this sector,” said Zvi Lando, CEO of SolarEdge.
Inverter shipments surpassed 4.3GW with over 334,600 inverter units supplied to its various markets, increasing from 3.6GW and over 329,000 inverters respectively. SolarEdge also shipped 5.5 million power optimisers, dropping from 6.4 million from the previous quarter, and 269.2MWh of battery storage, up from 221.2MWh in Q1 2023.
“In Europe, installation rates continue to be high in both residential and commercial. With that in mind, our growth in Europe in the second quarter was very strong. Overall, our megawatt shipments to Europe grew by 52% quarter over quarter, including 57% in residential and 50% quarter-over-quarter growth in commercial,” said Lando.
But the US market faced headwinds. Lando reported that the US residential market saw a decrease in demand compared to the second half of last year due to higher interest rates and the new net metering 3.0 regime in California, which eliminated over 75% of the financial incentives.
Looking ahead, the company said revenue for Q3 2023 will be within the range of US$880-US$920, dropping by 7.2%-11.2% quarter-on-quarter. Ronen Faier, chief financial officer of SolarEdge, said that most of the reduction will be from less revenue of batteries, mostly in Europe, and inverter shipments will be a little bit slower to ramp compared to the other products.