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Enphase (ENPH) Unveils IQ8P Microinverter in France and Spain

Enphase Energy, Inc. ENPH has commenced shipment of its new microinverter, IQ8P, with a peak output power of 480 watts (W), in France and Spain’s solar markets. These microinverters have the ability to support the latest high-powered solar modules.

Significance of IQ8P Microinverters

With their ability to handle a constant direct current (DC) of 14 amperes, the IQ8P microinverters are engineered to optimize energy yield and accommodate higher-powered solar modules by increasing energy harvesting.

Enphase’s newly available and most powerful microinverter to date, IQ8P, is designed to use low-voltage alternating current power instead of high-voltage DC power. The microinverter can seamlessly pair with a full range of solar modules up to 640W DC.

For all IQ8P Microinverters activated in France and Spain, a 25-year limited warranty is available.

ENPH’s Prospects in Europe’s Solar Market

In line with other regions across the globe, Europe has been rapidly expanding its renewable energy portfolio to promote green energy. To this end, it is imperative to mention that Enphase  has been steadily expanding its footprint in Europe’s solar market. Evidently, the European region contributed 31% to the total revenues of the company in 2023.

In this context, Enphase’s endeavors, like the latest launch, should bolster its footprint in the European solar market. In February 2024, the company started shipping its new home energy system, with IQ Battery 5P and IQ8 microinverters, in Italy. In January, Enphase started shipment of the three new microinverters, IQ8MC, IQ8AC and IQ8HC, in Belgium.

Such endeavors are likely to provide meaningful gains to the company in the days ahead, which can be further gauged by a recent projection from SolarPower Europe. Per the report, 56 gigawatt (GW) of solar installations were made in Europe in 2023 and is expected to reach 62 GW in 2024, registering year-over-year growth of 11%.

Such growth expectations and the company’s expansion efforts across Europe, including the recent expansion, should potentially enhance its revenue generation prospects in the region.

Peers to Benefit

Other prominent solar players like Canadian Solar CSIQ, Emeren Group SOL and SolarEdge Technologies SEDG are also expanding their footprint to reap the benefits of expanding European solar energy market.

Canadian Solar has a presence in Germany, the United Kingdom, Poland, Spain, Italy, France and the Netherlands. As of Jan 31, 2024, CSIQ’s Recurrent Energy had a solar development project pipeline of 9,915 megawatt-peak (MWp) in the Europe, Middle East and Africa region. The region contributed 25% to the total revenues of the company in 2023.

CSIQ has a long-term (three to five years) earnings growth rate of 25%. The Zacks Consensus Estimate for its 2024 sales implies an improvement of 15.8% from the prior-year figure.

Emeren has a presence in Europe since 2012 and the region comprised 86% of the total revenues during 2023. As of Dec 31, 2023, the company had 1,549 megawatts (MW) of advanced-stage pipeline and 5,704 MW of early stage solar development project pipeline in Europe. In December 2023, Emeren purchased 86 MWp solar portfolio in Spain.

The Zacks Consensus Estimate for SOL’s first-quarter 2024 sales implies an improvement of 146.4% from the prior-year figure. Its shares have gained 4% in the past month.

SolarEdge has a strong presence in Germany, the United Kingdom and Switzerland. With its revenues from Europe comprising 64% of the total revenues in 2023, the company shipped 8,321 MW of energy to the continent. On Mar 28, 2024, SolarEdge rolled out dynamic rate optimization capability, powered by the SolarEdge ONE system, in the Netherlands.

SEDG’s long-term earnings growth rate is 14.8%.  Its shares have surged 64.3% in the past five years.

Price Performance

In the past six months, shares of ENPH have lost 3.1% compared with the industry’s 4.9% decline.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank

Enphase currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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