Enphase Energy (NASDAQ: ENPH) Inventory increased 14% as of 2:30 p.m. EST after the solar microinverter maker announced the launch of its Enphase Installer Network in Australia earlier this morning.
According to Enphase, the EIN recognizes “a network of trusted installers who provide an exceptional homeowner experience with Enphase products and are designed to help Enphase installers grow their business with a range of innovative digital tools and exclusive benefits.”
So the EIN is essentially some kind of industry certification system or seal of approval that contractors can use to show potential customers that their work has been approved by the Enphase. The longer a contractor has had a relationship with Enphase and the better their reputation for quality work, the higher their rank within the EIN system, from silver installer to gold to platinum.
In this regard, the goal of the system seems to be to get more work for contractors using Enphase parts (as opposed to inverters from other suppliers, which increases Enphase’s sales). encourage these contractors to patronize Enphase towards other suppliers in order to improve their status within EIN; and to create a kind of aura of desire for Enphase products.
I’m not convinced this product is worth the additional $ 660 million market cap it apparently added to Enphase stock this afternoon. I’m sure this won’t change the valuation proposal for this 106x earnings stock, which still seems quite expensive to me.
But it’s still incrementally positive and good news for investors today.