SolarEdge Announces Early Certification for Europe’s Mandatory Cyber Security Requirements for Wireless Connected Products

Rhea-AI Summary

SolarEdge Technologies, Inc. (NASDAQ: SEDG), a global leader in smart energy technology, has announced early certification and compliance with the European Commission's New Radio Equipment Directive (RED) Article 3.3 requirements for cyber security. This directive, set to take effect in August 2025, establishes a new regulatory framework for radio equipment and imposes cybersecurity requirements for IoT products sold in Europe.

The Article 3.3 requirements focus on improving network protection features, personal data protection, and reducing fraud risks. This regulation is particularly significant for the solar industry due to its growing contribution to global energy generation and its increasing importance as critical energy infrastructure.

Ronen Faier, Interim CEO of SolarEdge, emphasized the company's commitment to safety and security in product design and their role in setting benchmarks for cybersecurity in PV technology. This announcement follows SolarEdge's recent compliance with the UK's Product Security and Telecommunications Infrastructure (PSTI) regulation, effective April 2024.

Positive

• Early certification for European cybersecurity requirements, ahead of 2025 deadline
• Compliance with UK's PSTI regulation, effective April 2024
• Positioning as an industry leader in cybersecurity for PV technology

Negative

• None.

Insights

Tech Expert

SolarEdge's early certification for Europe's cyber security requirements is a strategic move that positions the company favorably in the evolving solar industry landscape. This proactive approach demonstrates SolarEdge's commitment to product security and regulatory compliance, potentially giving them a competitive edge as the 2025 deadline approaches. The certification covers their entire PV inverter portfolio, which is important for maintaining market share in Europe. By addressing network protection, personal data security and fraud risk reduction, SolarEdge is aligning with the growing importance of solar as critical energy infrastructure. This certification may boost customer confidence and could lead to increased adoption of SolarEdge products in the European market. However, the impact on short-term financials may be , as the regulation doesn't come into effect until 2025. Investors should consider this as a long-term strategic advantage rather than an immediate revenue driver.

Market Research Analyst

SolarEdge's early compliance with the RED Article 3.3 requirements positions the company as an industry leader in cybersecurity for solar technology. This move could significantly impact market dynamics in Europe's solar sector. As the regulation becomes mandatory in 2025, SolarEdge may gain a first-mover advantage, potentially capturing market share from competitors who are slower to adapt. The emphasis on cybersecurity aligns with growing concerns about energy infrastructure protection, which could become a key differentiator for consumers and businesses choosing solar solutions. This certification, combined with compliance to UK's PSTI regulation, strengthens SolarEdge's position in key European markets. While the immediate financial impact may be minimal, the long-term benefits could include increased customer trust, potential premium pricing for security-compliant products and reduced regulatory risks. Investors should monitor how this early certification translates into market performance and whether it influences industry standards or customer preferences in the coming years.

MILPITAS, Calif.--(BUSINESS WIRE)-- SolarEdge Technologies, Inc. (“SolarEdge” or “the Company”) (NASDAQ: SEDG), a global leader in smart energy technology, today announces that its portfolio of PV inverters has achieved early certificationⁱ and compliance with the European Commission’s New Radio Equipment Directive (RED) Article 3.3 requirements for cyber security.

Expected to come into effect in August 2025, the Article 3.3 establishes a new regulatory framework for radio equipment and imposes cybersecurity requirements for all applicable IoT products sold in Europe. As part of this Article, PV systems that rely on wireless connectivity will be required to comply with a new and extensive series of cyber security requirements. These requirements focus on the improvement of network protection features, personal data protection and the reduction of fraud risks.

The new regulation holds particular significance for the solar industry due to its expanding contribution in global energy generation and its growing importance as critical energy infrastructure in numerous countries.

Ronen Faier, Interim CEO, SolarEdge Technologies, comments: “As a leader in the smart energy industry, SolarEdge has consistently prioritized safety and security in all our product design, and we believe it is our responsibility to help set the benchmark for cybersecurity capabilities in PV technology. With the rapid growth of solar adoption, the need for non-negotiable cyber security regulations is critical to safeguarding future energy security. We are pleased to see Europe taking the lead with the forthcoming RED regulation, which will help ensure homeowners, businesses and grid operators embrace solar technology with more robust cyber defenses in place.”

Today’s announcement follows the Company’s recent announcement that its entire product portfolio also complies with the UK’s Product Security and Telecommunications Infrastructure (PSTI) regulation, that has come into effect April 2024.

About SolarEdge

SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, and grid services solutions. Visit us at: solaredge.com

ⁱ To verify compliance with the relevant RED article clauses, SolarEdge successfully completed a third-party evaluation of its inverters by Kiwa, one of Europe's leading product certification labs.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241021306886/en/

Press

SolarEdge Technologies, Inc.

Lily Salkin Senior Global Manager of Public Relations

Lily.salkin@solaredge.com

Investor

JB Lowe, Head of Investor Relations

investors@solaredge.com

Source: SolarEdge Technologies, Inc.

FAQ

What cybersecurity certification has SolarEdge (SEDG) achieved for its PV inverters?

SolarEdge has achieved early certification and compliance with the European Commission's New Radio Equipment Directive (RED) Article 3.3 requirements for cyber security for its portfolio of PV inverters.

When will the European Commission's RED Article 3.3 requirements come into effect?

The RED Article 3.3 requirements are expected to come into effect in August 2025.

What does SolarEdge's (SEDG) early compliance with RED Article 3.3 mean for the solar industry?

SolarEdge's early compliance sets a benchmark for cybersecurity in PV technology, addressing the growing importance of solar as critical energy infrastructure and the need for robust cyber defenses in the industry.

Has SolarEdge (SEDG) complied with any other cybersecurity regulations recently?

Yes, SolarEdge has also announced compliance with the UK's Product Security and Telecommunications Infrastructure (PSTI) regulation, which came into effect in April 2024.