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For years, I’ve written about Enphase Energy’s (NASDAQ:ENPH) Holy Grail – their revolutionary IQ8 microinverter, which would usher in microgrid-capable solar PV sans storage. I was recently one of the first to have such a system installed and believe this technology will transform residential and C/I solar much like Rapid Shutdown did in 2017. Enphase’s long-awaited energy system is a game-changer because no energy system today can provide power when the utility grid is down using just solar PV; all other competitor systems require some form of battery storage to operate.
Enphase’s IQ8 PV “Sunlight Backup” (shown above) blows away the competition on price since battery storage is optional; this fact alone will attract a much wider customer audience, and a “Sunlight Backup” will also guarantee future sales of Encharge storage.
Excellent company health…
Since 2017, Enphase has grown revenue 5x (see p.56) thanks to the IQ microinverters; their Net Promoter Score is now greater than 70 (scores usually range from -100 to 100, so > 70 is very good). In just the past year, Enphase’s revenue has increased 77% (see p.11), and their Installer Network has doubled to ~1,000 outfits with ~2 million systems sold worldwide. If you consider Enphase at $0.75 per share staring into the abyss in 2017 to where they are now, their story has been nothing less than extraordinary, and the type of growth they experienced may never be repeated. However, if you look at their major arsenal of products on the horizon, including their latest revolutionary grid-forming IQ8 microinverters, the stock could still take off as more and more installers understand the advantage and simplicity of using Enphase’s new technology.
Major products expanding into new markets…
Enphase’s major products debuting or planned (see pps.17-25) will change the landscape of the energy arena: – (1) IQ8 grid-forming microinverters up to 384-Watts AC, (2) IQ8D dual microinverter at 640-Watts AC for the 20-500kW C/I arena, (3) smaller, lighter weight and lower costing Encharge storage revisions with twice the charge-discharge speed of previous models, (4a) IQ9 microinverter (shown below) with GaN technology at 500-Watts AC with 30% size reduction and able to pair with 600-Watt DC modules producing a perfect DC-AC power ratio; (4b) IQ9D dual inverter with GaN technology, 3-phase grid-forming ability and variable frequency at a whopping 960-Watts AC.
Besides the aforementioned products which will spur growth for Enphase, investors should also be aware of the recent ClipperCreek acquisition; this gives Enphase the ability to sell an EV charger with its energy systems. The ClipperCreek EV Charger already comprises ~15% of the non-Tesla EV market with a $200M SAM and is expected to grow to ~$6B by 2025.
Another revenue stream worth mentioning which investors may be unaware of is Enphase’s Grid Services; Enphase has over 8 programs currently where they’re basically a brick in the wall of a utility’s IoT infrastructure with their software managing farms of IQ micros and Encharge storage. This revenue stream is valuable since Federal C/I subsidies will carry on through 2024 while residential ones end in 2023. …….