Enphase Energy, Inc. ENPH announced that installers of Enphase products in Brasilia have seen a considerable rise in deployments of residential solar energy systems powered by IQ7AM Microinverter.
The company switched to offering Enphase products after selling its first Enphase system installation in June 2022. Customers who own solar systems powered by Enphase are benefiting from this move. This is due to less frequent maintenance requirements and a highly adjustable design that allows customers to expand the system according to their energy requirement.
Benefits of the Product
In order to maximize efficiency and reliability, IQ7AM Microinverter makes use of Enphase's distinctive software-defined architecture and semiconductor integration. Enphase microinverters undergo a strict durability and quality testing process (with more than a million hours of power-on testing) to ensure that they work to the highest standards even in extreme weather conditions.
These microinverters integrate with the IQ Gateway, which can be connected to the internet to enable over-the-air updates and connect to the Enphase App monitoring platform. The IQ Gateway and IQ Microinverters help simplify residential energy monitoring and insights into operation and maintenance for homeowners.
Growth Prospects
The solar market in Brazil offers tremendous growth potential as the region transitions to renewable energy sources to meet climate goals. Per a report by Brazilian Association of Photovoltaic Solar Energy (Absolar), Brazil is likely to add more than 10.1 gigawatts of solar generation capacity in 2023. This signifies growth of nearly 52% from the current solar generation capacity. The Brazilian solar energy market is expected to witness a CAGR of around 5.5% during 2022-2027.
Apart from Enphase, major companies that have carved a niche in the Brazilian solar market are Canadian Solar Inc. CSIQ and JinkoSolar Holding Co. Ltd JKS.
In 2022, Canadian Solar announced that its Global Energy business group clinched a power purchase agreement with Usinas Siderurgicas de Minas Gerais S.A. Per the deal, CSIQ is responsible for the development of the 381 megawatt-peak Morada do Sol project in the State of Goiás. The project is expected to produce nearly 790 gigawatt-hour of clean energy annually, thereby supporting Brazil’s clean energy goal.
The Zacks Consensus Estimate for CSIQ’s 2023 earnings per share (EPS) indicates a year-over-year increase of 67.4%. The company delivered an average earnings surprise of 106.3% in the last four quarters.
In 2022, JinkoSolar’s subsidiary, Jinko Solar Co, inked a deal to supply solar modules for Phase l of the Santa Luzia Complex Project in Paraíba State, Brazil. Per the deal, the company will provide 522 megawatts of Tiger Neo 78 Cell modules for the under-construction project in Brazil, thereby tapping the growth of the expanding solar market in Brazil (with its high-performance modules).
The Zacks Consensus Estimate for JKS’ 2023 EPS indicates a year-over-year improvement of 59.31%. The company delivered an average earnings surprise of 194% in the last four quarters.
Price Performance
In the past month, shares of Enphase have rallied 4.5% against the industry’s 3.5% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stock to Consider
Enphase currently carries a Zacks Rank #3 (Hold).
A better-ranked stock from the same industry is Maxeon Solar Technologies MAXN, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for MAXN’s 2023 EPS indicates year-over-year growth of 101.7%. The company delivered an average earnings surprise of 36.7% in the last four quarters.
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