SolarEdge Unveils Next Generation All-in-One Home Solar + Storage Solution at RE+ 2024

Rhea-AI Summary

SolarEdge Technologies, Inc. (NASDAQ: SEDG) has unveiled its next-generation single-phase solar + storage solution at RE+ 2024. The new residential offering integrates a scalable battery and a new solar inverter up to 11.5kW, providing flexible whole home backup. Key features include:

- Modular design allowing homeowners to start with PV-only or a smaller 4.4kWh LFP battery
- Scalable up to 211.2kWh per site
- DC-coupled architecture for higher energy yield
- SolarEdge ONE advanced energy management software
- Up to 50% reduction in installation and commissioning time
- Meter Collar for faster whole home backup installations
- Expected U.S. manufacturing to qualify for maximum domestic content incentives

The solution is designed to address varying home needs across the U.S. and is expected to roll out in late 2025.

Positive

• Introduction of a highly flexible and scalable solar + storage solution
• Potential for higher energy yield due to DC-coupled architecture
• Reduction of installation and commissioning time by up to 50%
• Planned U.S. manufacturing to qualify for maximum domestic content incentives
• Compatibility with extreme climate zones and support for large residential HVAC systems

Negative

• Product roll-out not expected until late 2025, potentially lagging behind competitors

Insights

Tech Expert

SolarEdge's new solar + storage solution marks a significant leap in residential energy management. The highly modular design with scalable battery capacity (4.4kWh to 211.2kWh) offers unprecedented flexibility, catering to diverse home sizes and energy needs. The DC-coupled architecture and module-level optimization promise higher energy yields, addressing efficiency concerns in current systems. The 50% reduction in installation and commissioning time could be a game-changer for installers, potentially lowering costs and accelerating adoption. The Meter Collar feature for whole home backup and compatibility with large HVAC systems enhance its market appeal. However, the late 2025 rollout means competitors have time to catch up and the success will largely depend on pricing and real-world performance.

Financial Analyst

SolarEdge's strategic move into next-gen solar + storage solutions could significantly impact its market position and financials. The planned U.S. manufacturing aligns with domestic content incentives, potentially boosting margins and sales. The modular design allows for lower entry costs, which could expand the addressable market. However, the 2025 launch timeline is concerning, as it may lead to near-term market share loss. The reduction in installation time by 50% could improve installer profitability, potentially driving partnerships and sales. Investors should watch for R&D and capex increases in the coming quarters, as well as any shifts in the competitive landscape before the product launch. The stock may see volatility as the market weighs the long-term potential against short-term challenges.

Market Research Analyst

SolarEdge's new offering addresses key market demands: flexibility, efficiency and ease of installation. The scalable battery capacity from 4.4kWh to 211.2kWh caters to a wide range of consumers, potentially expanding market reach. The 50% reduction in installation time could be a major selling point for installers, potentially driving adoption rates. The focus on whole home backup and compatibility with large HVAC systems taps into growing consumer concerns about energy security. However, the 2025 launch is a significant delay in a fast-moving market. Competitors like Tesla and Enphase may capitalize on this gap. The success will hinge on SolarEdge's ability to maintain technological edge and competitive pricing until launch. Market reception will also depend on how well SolarEdge educates consumers and installers about the benefits of this new system.

• Highly modular design introduces flexible battery capacity for every home
• Designed to significantly reduce installation and commissioning time by approximately 50%
• Expected to be manufactured in the U.S. to help qualify for maximum domestic content incentivesⁱ

MILPITAS, Calif--(BUSINESS WIRE)-- SolarEdge Technologies, Inc. (“SolarEdge”) (NASDAQ: SEDG), a global leader in smart energy technology, today unveiled its next-generation single-phase solar + storage solution at RE+. The new residential offering will integrate a scalable battery and a new solar inverter up to 11.5kW to provide highly flexible whole home backup to fit various types of home across the US.

Illustration of SolarEdge's Next Generation All-in-One Home Solar + Storage Solution (Photo: Business Wire)

The solution’s modular design will allow homeowners to start with PV-only, or with a smaller LFP 4.4kWh battery for a lower entry cost. It can scale up to four battery modules per single battery (up to 17.6kWh), up to four batteries per inverter (up to 70.4kWh) and up to three inverters per site (211.2kWh). From an installer perspective, this enables the selection of the appropriate system size per individual and future system owner needs.

Focused on increasing homeowner earnings, the technology is based on SolarEdge’s DC-coupled architecture, which already avoids a triple conversion penalty for higher energy yield. This will also be amplified by high efficiency from battery module-level optimization. The solution will be powered by the SolarEdge ONE advanced energy management software, for further energy savings.

For installers, the solution is designed to reduce system installation and commissioning processes by up to 50% (down to approximately 20-30 minutes) and is multi-purposed for various configurations (PV-only, storage-only, and backup installations) with the same product part numbers. The offering will also include a Meter Collar to accelerate whole home backup installations and open new business opportunities for installers. Coupled with embedded PCS and advanced busbar management to allow installations of up to 4x larger systems, the solution also reduces the need for costly main panel upgrades. Other notable design elements include high LRA to support the largest of residential HVAC systems and installation compatibility with extreme climate zones.

Roll-out of the new solution is expected to begin in late 2025. It is expected to be manufactured in one of the Company’s U.S. manufacturing sites to help qualify for maximum domestic content incentives.

Ronen Faier, Interim Chief Executive Officer of SolarEdge: “Our next generation integrated solar and storage solution is based on our vast experience with millions of homes across the U.S. Addressing the need for home battery storage, it also provides the flexibility for customers to adapt their home solar to dynamic energy markets. Coupled with our advanced energy management software capabilities, we believe this will offer a differentiated solution to North American installers and homeowners alike. “

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 SolarEdge does not provide tax and/or legal advice. You should consult with your own legal and/or tax advisor(s) regarding the eligibility of your project for the ITC or PTC, including the 10% domestic content bonus, to determine how the applicable rules apply to your particular project.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910131332/en/

Press Contact

SolarEdge Technologies, Inc.

Lily Salkin Senior Global Manager of Public Relations

Lily.salkin@solaredge.com

Investor Contact

JB Lowe, Head of Investor Relations

investors@solaredge.com

Source: SolarEdge Technologies, Inc.

FAQ

What is the maximum capacity of SolarEdge's new solar + storage solution?

The new SolarEdge solution can scale up to 211.2kWh per site, with up to three inverters each supporting up to 70.4kWh of battery storage.

How does SolarEdge's new solution aim to reduce installation time?

The solution is designed to reduce system installation and commissioning processes by up to 50%, potentially bringing the time down to approximately 20-30 minutes.

When will SolarEdge (SEDG) release its next-generation solar + storage solution?

SolarEdge plans to begin rolling out its next-generation solar + storage solution in late 2025.

What is the maximum inverter capacity of SolarEdge's new residential solar solution?

The new SolarEdge residential offering includes a solar inverter with capacity up to 11.5kW.