Microinverter Company Enphase Energy’s Q2 Profit Up 37% YoY

The company shipped ~5.20 million microinverters during the quarter


Enphase Energy, a microinverter-based solar and storage systems supplier, reported a 37% increase in net profit to $205.6 million during the second quarter (Q2) of 2023 compared to $149.8 million gained during Q2 2022, primarily driven by higher microinverter shipments.

The company recorded a revenue of $711.1 million for the period, a 34% YoY increase.

The microinverter shipments by Enphase from April to June increased by 55% YoY to ~5.20 million or approximately 2,121 MWdc.

Enphase said that its ‘IQ8’ microinverters constituted around 78% of all microinverter shipments, up from 37% in the same quarter a year ago.

During Q2, the company also began microinverter shipments from Enphase’s contract manufacturer Flex in Columbia, South Carolina.

The company said it could accelerate manufacturing in the United States during the first six months of 2023, supported by the Inflation Reduction Act (IRA) passed in August last year. Enphase shipped 50,000 microinverter units from its South Carolina and Wisconsin manufacturing facilities, realizing a net IRA benefit of $1.6 million during Q2 2023.

During the earnings conference call, Badri Kothandaraman, Enphase Energy’s President and CEO, noted that the decrease in the supply of microinverters within the U.S. was due to the overall slowdown in the economy and demand, which was cushioned by the increase in revenue from the European operations.

He said, “Our U.S. and international revenue mix for Q2 was 59% and 41%, respectively. Q2 was a record quarter for our international revenue, primarily due to the growth in Europe and Australia. In the U.S., our revenue decreased 12% sequentially and decreased 1% year-on-year. The overall sell-through of our microinverters in the U.S. was up 2% in Q2 compared to Q1. In Europe, our revenue increased 25% sequentially and more than tripled year-over-year at a healthy gross margin.”

The company’s battery shipments for its ‘IQ’ batteries were down to 82.3 MWh during Q2 2023, down from 132.4 MWh shipped last year. The company said that the shipments reduced as operations and investments were directed into Spain and Portugal, where it introduced the IQ Battery 5P, which Enphase claims is its most powerful battery.

The company shipped over 6,600 EV chargers in Q2 compared to 8,600 in Q1 in the U.S.

The company’s operating expenses increased by 38% to $98 million during Q2 compared to $71 million in the same period last year, primarily due to investment in U.S. manufacturing and R&D equipment.

The solar and storage systems supplier posted a gross margin of 46.2% for Q2, up from 42.2% in the same quarter of 2022.

Earlier this month, Enphase also expanded its global reach by collaborating with BaYwa r.e., a global developer and distributor of solar photovoltaic, to distribute the former’s IQ8 microinverters series in Poland.

The company posted a YoY growth of 183% in its profit at $147 million for Q1 2023, mainly driven by higher microinverter and battery system shipments to new regions it is currently improvising on.

Mercom recently reported on how solar inverter suppliers are managing the increasing demand in light of the global semiconductor chip shortage.