SolarEdge and Enphase Now Management 80% of the US Residential Solar Inverter Market

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SolarEdge and Enphase Now Control 80% of the US Residential Solar Inverter Market

The US solar market for private households has just experienced its best quarter to date with 712 megawatts (DC). The growth is diversified across the US states, and there are opportunities across the solar value chain.

So which inverter providers benefit?

According to the latest edition of Wood Mackenzie’s US PV Leaderboard released this week, SolarEdge inverters were used in 60.5 percent of US residential complexes for the first three quarters of this year. That’s more than three times that of SolarEdge’s closest competitor, Enphase, with a market share of 19.2 percent.


Source: Wood Mackenzie US PV Leaderboard, Q4 2019

The current market is in stark contrast to a few years ago, when SolarEdge expanded its presence in the US domestic solar sector. With a market share of only 4.5 percent, SolarEdge was in fifth place in 2013 behind the market leaders at the time, ABB, Enphase, SMA and Fronius.

It should be noted that there was roughly as much home solar installed in the third quarter of 2019 as it was in all of 2013. In other words, SolarEdge is dominating a much bigger pie today.

What strategies are the two leading inverter suppliers pursuing in the US solar market?

SolarEdge differentiates its product by combining single phase inverters for households with DC optimizers, while Enphase manufactures microinverters.

SolarEdge’s increase was complemented by a significant consolidation in market share. The price pressure in the inverter landscape has led to the withdrawal of providers in recent years, from which the top companies in particular have benefited. Vendors other than SolarEdge and Enphase had a market share of over 67 percent in 2013. From the third quarter of 2019, the market share of this “other” group has dropped to just 20.3 percent.

It wasn’t that long ago that Enphase was on the verge of financial meltdown. However, from 2015 to 2017, the company made a concerted effort to cut its costs by 50 percent. The company was not only able to stay afloat, but also increased its sales.

Enphase regained some lost market share this year, capturing more than 20 percent of residential complexes in the third quarter of 2019 for the first time since the first quarter of 2018 – a routine feat for the company in previous years.

The transition from just manufacturing inverters to providing more holistic energy services is a strategy that is being pursued across the global PV inverter landscape. However, SolarEdge and Enphase are leaders in this regard.

Both companies are expanding their product offerings and have introduced home energy platforms in recent years. These platforms can connect electric vehicles, solar plus storage systems, smart meters and household appliances. Such network edge technologies are all facing expansion.

SolarEdge has been on an acquisition course since 2018, acquiring an electromobility and battery storage company that will contribute to its platform for household energy solutions. In addition, SolarEdge made a third acquisition, an uninterruptible power company – a business that is not directly tied to the inverter room but is still a growing market.

In keeping with SolarEdge’s pioneering tactics, the company has developed a virtual power plant software offering that is compatible with all companies’ inverter technology, not just their own. StorEdge, a product for EV inverters, was also launched.

Enphase, on the other hand, has entered into several strategic partnerships to expand its AC module business, including partnerships with SunPower, LG, Panasonic and Solaria. The company is further developing its energy solution for private households.

SolarEdge and Enphase have captured most of the US housing market due to innovative and forward-looking measures to help meet the growing demand for holistic energy services.

According to Wood Mackenzie’s most recent forecast, the US solar market for private households will reach 2.4 gigawatts in 2019 and grow to 3 gigawatts in 2020.

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Wood Mackenzie’s US PV leaderboard captures both private and commercial market shares for inverter suppliers, solar installers and module suppliers.

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