From pv magazine USA
Two inverter suppliers, Enphase and SolarEdge, dominate the US rooftop solar market. The former supplies microinverters, while the latter provides string inverters tied to module-level power optimizers.
Together, the two represent about 90% of the US market. Roth Capital Partners said in a recent industry note that Enphase holds about 50% of the market, while SolarEdge represents about 40% to 45%.
Residential solar is currently in a wounded state, with SolarEdge and Enphase stocks down as much as 70% from their highs in December 2022. High interest rates and changes to solar export compensation rates have caused a significant pullback in demand for new installations.
Phil Shen, managing director of Roth Capital Partners, has warned that these forces could continue to weigh on residential solar through 2024. He forecasts a 12% market contraction nationwide in 2024. This could spell doom for the share prices of high-growth companies like Enphase and SolarEdge.
Roth Capital Partners has also warned that Tesla might make a move to gobble up some market share in the rooftop solar inverter space. It is currently a major supplier of home batteries and despite a 48% pullback in its rooftop solar business, it is a significant player in residential solar.
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