Enphase Energy Expands its Support for Grid Services Programs Across the United States

Rhea-AI Summary

Enphase Energy (NASDAQ: ENPH) has expanded its support for grid services programs in New Hampshire, North Carolina, and California, powered by the new IQ® Battery 5P. These programs, also known as virtual power plants (VPPs), use energy stored in home batteries to help power communities during peak electricity demand, reducing reliance on costly and polluting power plants.

Homeowners with Enphase IQ Batteries can now enroll in the following programs:

• Duke Energy PowerPair Program: Offers up to $9,000 upfront incentive for installing three IQ Battery 5Ps and 10 kW of solar
• San Diego Community Power Solar Battery Savings Program: Provides $3,150 upfront rebate for two IQ Battery 5Ps, plus ongoing payments
• Eversource New Hampshire Clean Energy Fund (NHCEF) for Battery Storage Program: Offers $3,000 rebate for residential and $3,750 for commercial customers installing three IQ Battery 5Ps

These programs aim to make Enphase's technology more accessible while contributing to a more sustainable and resilient grid.

Positive

• Expansion of grid services programs in multiple states
• Significant financial incentives for homeowners (up to $9,000 upfront in some cases)
• Increased accessibility of Enphase's technology through incentive programs
• Contribution to grid stability and sustainability

Negative

• None.

Insights

Energy Technology Analyst

Enphase's expansion of grid services support is a strategic move that could significantly impact the company's market position. The new programs in New Hampshire, North Carolina and California, leveraging the IQ® Battery 5P, demonstrate Enphase's commitment to virtual power plant (VPP) technology. This expansion has several key implications:

• Increased Revenue Streams: By facilitating homeowner participation in utility incentive programs, Enphase is creating additional value propositions for its products, potentially driving sales and market share growth.
• Grid Resilience: The VPP model supports grid stability during peak demand, positioning Enphase as a key player in modernizing energy infrastructure.
• Market Differentiation: The IQ Battery 5P's integration with these programs sets Enphase apart in the competitive solar and battery storage market.

The substantial incentives offered ($9,000 upfront in Duke Energy's program, $3,150 plus performance payments in San Diego) could accelerate adoption rates. This move aligns with the growing trend towards decentralized energy systems and could strengthen Enphase's long-term market position in the renewable energy sector.

Financial Analyst

This expansion of grid services programs represents a positive development for Enphase's financial outlook. Key financial implications include:

• Revenue Growth Potential: The attractive incentives (e.g., $9,000 upfront from Duke Energy) could drive increased sales of Enphase systems, potentially boosting top-line growth.
• Market Expansion: By entering new geographic markets with these programs, Enphase is diversifying its revenue streams and reducing reliance on any single market.
• Recurring Revenue: Ongoing performance incentive payments (like the $3,000 over ten years in San Diego) create a predictable, long-term revenue stream for Enphase through service fees or revenue sharing with customers.
• Competitive Advantage: These partnerships with major utilities could create barriers to entry for competitors, potentially improving Enphase's market share and pricing power.

While the immediate financial impact may be modest relative to Enphase's $14.2 billion market cap, the long-term strategic positioning could significantly enhance shareholder value if these programs scale successfully.

FREMONT, Calif., Oct. 09, 2024 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world's leading supplier of microinverter-based solar and battery systems, announced today that it is expanding its support for grid services programs – or virtual power plants (VPPs) – in New Hampshire, North Carolina, and California, powered by the new IQ^® Battery 5P.

Grid services programs are managed by regional utilities and use energy stored in home batteries to help power communities when it is needed most, like during periods of peak electricity demand. This reduces reliance on costly and polluting power plants for electricity and, in return, provides incentives to homeowners from their own utilities. Incentive programs may serve as a discount on the purchase of an Enphase^® Energy System™ with IQ Batteries or as ongoing payments to participating homeowners. Most recently, homeowners who install Enphase IQ Batteries are now eligible to enroll in the following programs:

Duke Energy PowerPair Program: Participants enrolled in this program who install three IQ Battery 5Ps and at least 10 kW of solar with a Duke Energy Trade Ally installer are eligible to receive an upfront incentive of $9,000. Customers who also enroll in Duke Energy’s battery control programs - Duke Energy Power Manager or Duke Energy Progress EnergyWise - are eligible to receive additional ongoing monthly bill credits. Learn more about the details of the program on the Enphase website.

"Enphase’s dependable, high-performance, and safe home energy technology is enabling the clean energy future," said Edward Wright, co-owner of Rhino Renewables Solar & Electric, an installer of Enphase products based in North Carolina. "Home solar systems and batteries are crucial for supporting grid operations and reducing electricity costs for everyone.”

San Diego Community Power Solar Battery Savings Program: Participants enrolled in this program who install two IQ Battery 5Ps are eligible to receive an upfront incentive rebate of $3,150. Customers are also eligible to receive ongoing performance incentive payments worth approximately $3,000 over the ten-year participation period, from the time of enrollment. Learn more about the details of the program on the San Diego Community Power website.

“Enphase’s innovative battery solutions are a game-changer for homeowners looking to boost their energy resilience,” said Jeff Carelli, president and CEO of Sunlight Solar, an installer of Enphase products based in California and a Solar Battery Savings Program approved contractor. “By participating in grid services programs, our customers can not only maximize their energy independence but also contribute to a more sustainable energy future here in California.”

Eversource New Hampshire Clean Energy Fund (NHCEF) for Battery Storage Program: Participants enrolled in this demand response program who install three IQ Battery 5Ps are eligible to receive an upfront incentive rebate of $3,000 for residential customers and $3,750 for commercial customers (up to $10,000 for eight IQ Battery 5Ps). Learn more about the details of the program on the Enphase website.

“Our customers can now enhance the value of their system while contributing to a more sustainable and resilient grid,” said Hunter Judd owner of Sunup Solar, an installer of Enphase products based in New Hampshire. “Grid services programs make Enphase’s technology more accessible so more homeowners can enjoy the benefits of Enphase home battery systems.”

“Our cutting-edge software and hardware are designed to simplify participation in grid services programs for homeowners,” said Mehran Sedigh, senior vice president of sales at Enphase Energy. “Central to this effort is the new IQ Battery 5P, providing exceptional durability and value for homeowners. We are proud to expand our support for virtual power plants across the United States."

For more information about grid services, please visit the Enphase website.

About Enphase Energy, Inc.

Enphase Energy, a global energy technology company based in Fremont, CA, is the world's leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 76.3 million microinverters, and over 4.3 million Enphase-based systems have been deployed in more than 150 countries. For more information, visit https://enphase.com/.

©2024 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

Forward-Looking Statements

This press release may contain forward-looking statements, including statements related to the expected capabilities and performance of Enphase Energy’s technology and products, including safety, quality and reliability; the availability and market adoption of Enphase products; Enphase’s ability to expand its support for VPPs; and expectations of and eligibility for incentives under the various incentive programs. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties including those risks described in more detail in Enphase Energy’s most recently filed Quarterly Report on Form 10-Q, Annual Report on Form 10-K, and other documents filed by Enphase Energy from time to time with the SEC. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, or changes in its expectations, except as required by law.

Contact:

Enphase Energy

press@enphaseenergy.com

This press release was published by a CLEAR® Verified individual.

FAQ

What is the new Enphase battery model mentioned in the press release?

The press release mentions the new IQ® Battery 5P as the model powering the expanded grid services programs.

How much can homeowners save with the Duke Energy PowerPair Program for ENPH batteries?

Homeowners can receive an upfront incentive of $9,000 by installing three IQ Battery 5Ps and at least 10 kW of solar with a Duke Energy Trade Ally installer.

What incentives are offered in the San Diego Community Power Solar Battery Savings Program for ENPH products?

Participants can receive an upfront incentive rebate of $3,150 for installing two IQ Battery 5Ps, plus ongoing performance incentive payments worth approximately $3,000 over a ten-year period.

How much can Eversource New Hampshire customers save with ENPH batteries through the NHCEF program?

Residential customers can receive a $3,000 upfront incentive rebate, while commercial customers can receive $3,750 for installing three IQ Battery 5Ps.