Benzinga - by Zacks, Benzinga Contributor.
Enphase Energy, Inc. (NASDAQ: ENPH) recently launched its most powerful home battery solution, IQ Battery 5P, which comes with a 5-kilowatt-hour (kWh) capacity, in the solar market of Canada. The IQ Battery 5P, together with ENPH's new IQ8 microinverters, can supply dependable electricity to residential customers whenever needed.
How Will the Launch Benefit ENPH? With the latest launch, the third-generation Enphase Energy System will now offer configurations ranging from 5 to 80 kWh to homeowners in Canada. It will also provide an improved experience for homeowners and installers due to its higher power, resilient wired connectivity and an improved commissioning process. With the IQ Battery 5P's durable and scalable energy storage system, homeowners in Canada will be able to control their energy future.
Furthermore, Canadian residents may now track performance and manage their battery systems intelligently using the Enphase App. This includes minimizing the quantity of electricity drawn from the grid by making use of self-consumption capabilities.
Therefore, considering the aforementioned discussion, it is evident that the latest launch will enable ENPH's Canadian clients to become more grid-independent and might attract more homeowners to choose IQ Battery 5P.
Per a white paper published by Energy Storage Canada in February 2024, anywhere between 8,000 MW and 12,000 MW of energy storage potential is likely to optimally support the net-zero transition of the Canadian electricity supply mix by 2035. This reflects a solid growth opportunity for energy solution system providers like Enphase Energy as Canada is rapidly going through electrification. The latest launch of its IQ Battery 5P positions ENPH as one of the primary energy storage suppliers in this nation.
Enphase's Growing Prospects in North America It is imperative to mention that with the entire world progressing toward a greener future, the battery storage market is booming significantly not only in Canada but also across North America. This region remains one of the major forerunners in the global energy storage market, with the United States expected to be the second largest energy storage market globally in 2024 (per a Bloomberg NEF report published in April 2024).
To this end, the Mordor Intelligence firm expects North America battery storage to witness a CAGR of 31.28% over the 2024-2029 period. Hence, to reap the benefits of this expanding market, Enphase Energy is steadily enhancing its footprint in this space. The company started shipping its IQ Battery 5P in Mexico in May 2024. The latest launch of this battery in Canada bears yet another example of ENPH's efforts to gain traction in North America's energy storage market.
Peers to Benefit Other prominent solar players like Canadian Solar (NASDAQ: CSIQ), Sunrun (NASDAQ: RUN) and Emeren Group (NYSE: SOL) are also expanding their footprint to reap the benefits of the expanding Battery Storage Market in North America.
Based in the United States, Canadian Solar boasts a strong presence in the energy storage industry, with 600 megawatt-hours (MWh) of battery energy storage projects in operation as of Mar 31, 2024. As of the same date, the company had 18,864 MWh of battery energy storage development pipeline in the North American region.
CSIQ's long-term earnings growth rate is 25%. The Zacks Consensus Estimate for 2024 sales implies a rise of 2.5% over 2023's reported figure.
Sunrun is a major provider of residential storage products in the United States. In May 2024, Sunrun announced that it networked more than 16,200 customers' solar-plus-storage systems to support California's electrical grid during the hot summer months.
RUN boasts an average four-quarter earnings surprise of 45.37%. Its share price has rallied 20.8% in the past three months.
Emeren develops solar plus storage and stand-alone storage projects in the United States and Canada. As of Mar 31, 2024, its energy storage project pipeline in the United States was 596 MW.
The Zacks Consensus Estimate for SOL's 2024 sales implies an improvement of 33.7% from the prior-year figure.
Price Movement In the past six months, shares of Enphase Energy have risen 24.3% compared with the industry's average growth of 21.5%.
Image Source: Zacks Investment Research
Zacks Rank Enphase Energy currently carries a Zacks Rank #3 (Hold).
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