Israel-headquartered solar inverter and energy management solutions supplier SolarEdge has reported a quarterly decline in shipment in the second quarter of 2024 with 873MW.
The drop is even steeper looking at the same period a year earlier when the company shipped more than 4.3GW of inverters in Q2 2023.
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Since 2020, SolarEdge inverter shipments have usually been led by the European market, however during Q2 2024 the rest of the world ended up with the most capacity shipped of all three regions – Europe, the US and the rest of the world – with 333MW.
This is due to a dip from Europe on a quarterly basis from 443MW shipped in Q1 2024 to 278MW in Q2 2024, while the US ended up with 261MW of inverters shipped in Q2 2024.
In terms of segments market, commercial and industrial (C&I) remains the leading space for SolarEdge although with a drop from the previous quarter. Shipments in the C&I segment dropped from 640MW in Q1 2024 to 564MW in Q2 2024. Residential increased its numbers by 7MW from the previous quarter with 309MW of inverters shipped in Q2 2024.
According to Zvi Lando, CEO at SolarEdge, the company aims to start shipping domestic content batteries for the US residential market in the beginning of 2025 as it has already started the shift to do so with residential inverters and optimisers.
In terms of domestically produced content in the US, the company manufactured nearly 450MW of single phase inverters in Q2 2024 at its Austin facility in Texas.
“We believe that the inverters and optimizers we manufacture in the United States when paired with US-made racking equipment that is available in the market, allow our TPO customers to use elective Safe Harbor to qualify for the 10% domestic content ITC adder today. We are also on track to have domestic content commercial product available by the end of the year,” said Lando
SolarEdge will unveil its next-generation single-phase residential system for the North American market during RE+ in Anaheim, California, in September. The new product is expected to be launched in the second half of 2025 and will include an inverter, battery backup interface and meter collar.
Europe C&I market remains flat
Regarding the C&I market in the US, Lando said: “Sell-through was up 18% quarter-over-quarter from a seasonally low first quarter and up 13% year-over-year. We remain encouraged by the potential of the US C&I market as large enterprise customers are increasingly interested in standardising their global portfolio on our solution due to our panel level monitoring, enhanced safety features, cutting-edge cybersecurity capabilities and highly sophisticated energy management systems.”
This is in contrast with the European C&I market, which has been flat for the past three quarters. There are no expectations for it to accelerate in most countries during the second half of the year, added Lando.
“In the Italian market, however, a special incentive plan equivalent to the residential eco-bonus programme which significantly boosted the Italian residential market in recent years, is in final stages of regulatory approval,” explained Lando.
Revenues rising on a quarterly basis
Although still not on par with the results in 2023, when it nearly registered US$1 billion revenues in Q2 2023, SolarEdge’s revenues are up from the previous quarter. In Q2 2024, revenue increased to US$265 million, from US$204 million in the previous quarter.
“We are encouraged by our second quarter top line results which saw sequential revenue growth of 30% and an 18% growth in sell through of our solar products by our distributor customers,” said Lando.
“While we expect undershipping to continue in the third quarter, we believe the momentum in our underlying business and the actions we are taking to gain market share and address new growth segments will enable a return to higher revenue levels once inventories are cleared in the first half of 2025.”
In its guidance for Q3 2024, Solaredge targets revenues to be within the range of US$260-290 million, with the solar business revenue to be between US$245-280 million.
Earnings call transcript from Seeking Alpha.
