Tag: SolarEdge

SolarEdge Technologies, Inc. (NASDAQ: SEDG) experienced a significant pre-market boost, with shares climbing 13.54% to $13.99. This rise is attributed to the company’s latest portfolio expansion, particularly the introduction of its new SolarEdge Home Battery ‘USA Edition,’ which aligns with the Domestic Content Bonus Credit guidelines set forth by the U.S. Department of Treasury and the IRS.

Introduction of the SolarEdge Home Battery ‘USA Edition’

The new SolarEdge Home Battery ‘USA Edition’ expands the company’s portfolio of domestically manufactured solar and storage solutions. Designed to comply with domestic content requirements, the battery offers a storage capacity of 9.7 kWh and integrates SolarEdge ONE, an advanced energy optimization system.

This innovation helps users maximize energy savings by intelligently managing solar export during peak rate periods. The battery complements SEDG’s existing lineup of U.S.-manufactured inverters and power optimizers, enabling solar providers to optimize incentives for their installations.

SEDG is Strengthening Domestic Manufacturing and Partnerships

SEDG has partnered with Bright Ops, a prominent installer in key markets like Puerto Rico, California, and Illinois, where energy storage is vital. The USA Edition battery enhances Bright Ops’ ability to deliver reliable, domestically produced solutions while reinforcing a robust supply chain.

Homeowners can now benefit from SolarEdge’s proven energy storage technology, backed by domestic manufacturing advantages and incentive programs. By expanding its U.S. production to include energy storage, SEDG demonstrates its commitment to strengthening domestic manufacturing infrastructure.

This strategic move ensures a steady supply of batteries, inverters, and power optimizers, addressing supply chain challenges while supporting American-made products.

Economic and Environmental Benefits for Homeowners

The USA Edition battery provides unique advantages for homeowners, especially in states like California under NEM 3.0. The integration of domestically manufactured solar and storage equipment not only enhances economic returns but also supports American jobs.

Additionally, SolarEdge simplifies compliance with domestic content bonus credit requirements by offering dedicated SKUs, streamlining tracking for stakeholders. SEDG’s focus on innovation and domestic production underscores its role as a leader in advancing clean energy solutions while aligning with U.S. policy incentives.

SolarEdge Technologies, Inc. (NASDAQ: SEDG) shares are seemed to be continuing on its upward trend. In pre-market trading, SEDG shares increased by 3.61% to reach $15.33 after rising 8.55% to end the previous session at $14.86. The company’s important strategy statement, which marked a dramatic shift in its operational focus, is credited with this increase.

Closure of Energy Storage Division

In a move aimed at refining its business model, SolarEdge (SEDG) has announced the cessation of operations in its Energy Storage division. This decision will lead to the layoff of approximately 500 employees, predominantly located in South Korea. This action is in line with SEDG’s overarching plan to improve financial stability and concentrate more on its core competencies, such as energy management and solar.

The entire advantages of the closure should be achieved by the second half of 2025, with an estimated $7.5 million saved in quarterly operating expenditures. SolarEdge intends to sell off assets related to the storage sector, such as battery cell and pack production facilities, as part of this move. Crucially, this plan won’t have an impact on battery sales to the residential and commercial solar sectors, guaranteeing ongoing support for its primary solar business.

Strategic Rationale and Market Challenges

SolarEdge’s leadership underscored that this decision followed a thorough evaluation of its product portfolio, market trends, and competitive dynamics. The restructuring reflects two key priorities: restoring profitability and positive cash flow through cost reductions, and doubling down on its core solar business and PV-attached storage capabilities.

The broader energy sector has faced challenges, with high interest rates in the United States driving up residential power costs and dampening demand. SolarEdge’s strategic pivot and accompanying $1 billion writedown reflect an effort to navigate these market difficulties effectively.

Refocusing on Core Competencies

By closing the Energy Storage division, SolarEdge aims to concentrate on its primary strength—solar technology. This recalibration positions SEDG to leverage its expertise in photovoltaic systems and energy management, ensuring long-term sustainability and competitive advantage in a challenging market landscape.