In a slow global solar market, SolarEdge grew total shipments 44% year-over-year, expanded its presence in the C&I market, and grew global sales. Margins did slip, and growth rates were slower.
The company confirmed that their recent purchase of an uninterruptible power supply (UPS) technology group and a South Korean lithium ion battery manufacturer means they will be offering energy storage products tied to their inverter offerings. Even as the global and U.S. solar markets were relatively flat to last year, the company managed to grow 44% – consuming the market share of other power electronics makers.
The company also announced Israel as the location of their 50 MW-AC utility scale project – by far the biggest plant it has won a contract to supply to date – as revenues from their offerings for the commercial market grew to over 46% of total sales. SolarEdge shipped over 1.1 GW in the quarter, and is projecting further Q4 growth.
Revenue growth did slow, and gross margins did slip from 36% to 33%. Also noted were “growing pains” as product replacements were greater this quarter than prior, and R&D resources were constrained (even as spending in the department grew). And there will have to be significant amounts of money spent to scale the energy storage arm from ~200-250 MWh/year capacity to the more than 1 GWh/year that the company will do “over a few years”.
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