$Enphase Energy(ENPH)$ Once Enphase US-IRA PTC production displaces all of the imported microinverter production the 10% ITC adder for US-made components will be calculated into the buyer equation, and the market share for Enphase will increase. (speaking the US market)
The same is happening with the Enphase IQ battery. The DC cells are being sourced in the US. Once the Chinese DC cells are displaced with US supplied the buyer will take advantage of the ITC 10% adder for US content.
FSLR and ENPH will be on a similar ITC adder advantage footing vs the competition.SEDG can not touch that! SEDG owns and operates a battery factory in Korea.GNRC maybe. I recall Generac making its battery in the US.
Inverter ITC/PTC is much lower for the string inverter than the 11 cents a watt the microinverter receives. When and if SEDG catches up and manufactures inverters and optimizers in the USThe ITC direct pay edged the Enphase gross margin over 50% on less than 600,000 qualifying microinverter units in Q3 2023.
Q4 guidance is for 1 Million PTC qualifying units.The IQ8P is 480 watts, production for export and domestic markets begins in Q4. The ITC, and the direct pay adder impact will be proportionally higher. 4.5 million units per quarter is the capacity output goal by the end of the year 2024.
The management challenge is to curtail imports and produce high-power IQ8P in the US. I think Badri can do this. Operational execution is in the company's DNA.
Most of the bank analysts see US and EU solar picking up pace in H2
California is looking at applications for 20% electric rate increases.
if that passes, NEM3.0 Solar and Battery payout within the same time frame as under NEM2.0
Cost avoidance will drive solar adoption.
It always did.
Porto Rico is looking at a 16% rate increase. DOE through Sunnova (NOVA) has a $3 billion loan guarantee program for the island's lower-income population.
There is a separate 10% adder for low-income solar on top of the US content.
Wyoming is looking at a 30% increase in rates
France, 2 rate increases of 17% in one year.
I could go on ...
ENPH is misunderstood and underappreciated, a true juxtaposition.
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