Enphase Energy, Inc. ENPH recently announced the acquisition of 365 Pronto, Inc., a predictive software platform that enables a two-way marketplace. It simplifies the cleantech service landscape by bringing together owners of cleantech assets with a local and on-demand workforce of service providers.
Advantages of the deal
The deal will allow Enphase installers to fulfill their own O&M (O&M) contracts and also have access to a nationwide skilled additional workforce capable of performing service calls during severe labor crises in the industry. The takeover will increase the service level of the current 365 Pronto customers and will be combined with the highly qualified network of Enphase installers as service providers. The agreement will also improve the homeowners experience buying and owning solar, battery storage and EV charging stations by helping to reduce waiting times for maintenance services.
Other Enphase efforts
Enphase continues to strengthen its existing activities through inorganic efforts. In November, Enphase announced the acquisition of ClipperCreek, a provider of charging solutions for electric vehicles (EV). The transaction is subject to regulatory approvals and customary closing conditions and is expected to close by December 31, 2021. In April, Enphase announced the completion of the previously announced acquisition of the Solar Design Services business from DIN Engineering Services LLP.
Enphase is also benefiting from an expanding solar market that created the conditions for the boom in the solar microinverter market. ENPH enjoys a strong position as the leading US manufacturer of microinverters. ENPH revolutionized the solar industry by developing a semiconductor-based microinverter. ENPH also holds a valuable position in the solar market by producing fully integrated solar-plus storage solutions.
Global boom in the battery storage market
Companies around the world are quickly turning to renewable energy sources for a cleaner environment. The introduction of solar energy is gaining in importance due to its low cost. According to a Markets and Markets report, the global battery storage systems market is projected to reach $ 12.1 billion with a CAGR of 32.8% by 2025.
In order to benefit from the robust growth of the battery storage market, other solar companies have namely SolarEdge technologies SEDG, SunRun RUN and Canadian Solar CSIQ is increasingly deploying capital in this area.
The StorEdge battery storage system from SolarEdge helps to meet energy needs with less or cheaper electricity. SEDG recently strengthened its presence in the United States with the introduction of its SolarEdge Energy Bank battery for residential use.
SEDG delivered a profit surprise of 5.07% in the last quarter of the report. SolarEdge’s long-term (three to five year) earnings growth rate is estimated at 17.7%.
SunRun’s Brightbox solar battery storage system features a world-class innovation in lithium-ion battery technology. RUN is one of the leading battery storage companies in the United States.
SunRun delivered a profit surprise of 120% for the last quarter of the report. The Zacks Consensus Estimate for the current quarter’s results is up 233.3% over the past 60 days.
Canadian Solar is developing one of the world’s largest project pipelines for battery storage. As of September 30, 2021, CSIQ had 2.9 gigawatt hours (GWh) on battery storage projects under construction and 21 GWh on the entire storage development pipeline.
Canadian Solar’s long-term earnings growth rate is set at 12%. CSIQ delivered a profit surprise of 133.3% for the last quarter under review.
Over the past year, Enphase’s shares are up 3.7% while the industry is down 36.2%.
One year price performance
Image source: Zacks Investment Research
Enphase currently has a Zacks rank of # 3 (Hold). You can see the full list of current Zacks # 1 Rank (Strong Buy) stocks here.
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