Enphase Energy to cut about 10% of its global workforce
Reuters
December 19, 202310:13 AM GMT+11Updated 4 hours ago
Dec 18 (Reuters) - Enphase Energy (ENPH.O) said on Monday it will reduce its global workforce by about 10%, which will impact about 350 contractors and employees, as part of a restructuring plan as it streamlines operations to focus on clearing its excess inventory worldwide.
Metering reform in California, the country's largest solar power market, and high lending rates in the U.S. that caused a significant drop in consumer demand has dented appetite for solar inverters in the United States.
Growth for solar power has also slowed down in Europe, leading to high inventory levels for companies such as Enphase.
In a regulatory filing, Enphase said it is planning to reduce the capacity of its worldwide microinverter contract manufacturing operations to about 7.25 million units per quarter, down from its current capacity of about 10 million units per quarter, which would be in closer alignment to the expected demand.
As a result, it will cease operations at its contract manufacturing locations in Timisoara, Romania and Wisconsin, United States.
The solar inverter maker said it aims to cut expenses by consolidating facilities across the world and reduce its real-estate footprint, while also extending its hiring and travel freeze through 2024, with some exceptions.
Enphase said it expects to complete its restructuring plan within the first half of 2024.
All of these actions will result in a one-time restructuring and asset impairment charge of about $16 to $18 million, Enphase said.
The company expects adjusted operating expenses to be in the range of $75 million to $80 million per quarter in 2024.
Reporting by Bhanvi Satija and Sriparna Roy in Bengaluru; Editing by Krishna Chandra Eluri
Not surprising. DC-AC Inverters and solar panels have become so cheap nowadays that microinverters are too expensive.
so that no electrician would be needed for the connections,
Quoteso that no electrician would be needed for the connections,Im sure thecartelstrade bodies will let that happen
The rest of the world is more sensible and has no problems with installing your own solar panel system
QuoteThe rest of the world is more sensible and has no problems with installing your own solar panel systemmaybe as a stand alone system,but what about running alongside an existing installation,or feeding into the grid?
But Enphase having to cut doesn't necessarily relate to microinverters having problems against string inverters. It could well be a market response for panel prices increasing in 2020-2021, and early adopters who got their systems installed "no matter how much is costs" already satisfied. Now market has responded by panel prices going down again but people are still not buying more PV systems currently.
I did the entire solar panel install on my roof by myself including mains connections
QuoteI did the entire solar panel install on my roof by myself including mains connectionsyou wouldnt get as far as hiring the roof ladder over here before someones demanding to see some bit of paper to prove you know how to use a roof ladder
Not surprising. DC-AC Inverters and solar panels have become so cheap nowadays that microinverters are too expensive. Only interesting for solar panel installers that like to make money on materials but likely they are being outbid by installers who use DC-AC inverters. It would not surprise me if an analysis of the sales of Enphase shows an increase in storage systems and they start to shift their core business in that direction.
But Enphase having to cut doesn't necessarily relate to microinverters having problems against string inverters. It could well be a market response for panel prices increasing in 2020-2021, and early adopters who got their systems installed "no matter how much is costs" already satisfied. Now market has responded by panel prices going down again but people are still not buying more PV systems currently.They really painted themselves into a corner with the single panel inverters, and forgot to innovate.
Like that Hoymiles inverter that Dave reviewed. Takes 4 panel, rated to 1500W (375W/panel) and the price of it in NL is 250EUR. You don't need extra boxes in the system. ENPHASE IQ8AC is 140 EUR, only good for 1 panel and only rated for 365W peak, needs an extra little box to connect to the internet. You really need to be a fanboy to spend more for the inverters than the panels themselves.
I don't think it's an issue of microinverters, It's an issue of pricing, and economies of not scaling.
Not surprising. DC-AC Inverters and solar panels have become so cheap nowadays that microinverters are too expensive. Only interesting for solar panel installers that like to make money on materials but likely they are being outbid by installers who use DC-AC inverters. It would not surprise me if an analysis of the sales of Enphase shows an increase in storage systems and they start to shift their core business in that direction.
Enphase has moved to storage systems, but the main reason for the reduction in their microinverter business is that the electric utilities in California have managed to convince the Public Utilities Commission (CPUC) to change the rules for net metering in a way that makes new solar installations uneconomical.
you wouldnt get as far as hiring the roof ladder over here before someones demanding to see some bit of paper to prove you know how to use a roof ladder
QuoteThe rest of the world is more sensible and has no problems with installing your own solar panel systemmaybe as a stand alone system,but what about running alongside an existing installation,or feeding into the grid?
Not surprising. DC-AC Inverters and solar panels have become so cheap nowadays that microinverters are too expensive.
Yeah. Regardless of how much I have voiced my preference for string inverters, due to them being good enogh, cheaper, (and possibly maybe perhaps more reliable) - this is also the realistic default choice on most parts of the planet outside the USA -, I would really love to see microinverters succeed because there are many (even if small) theoretical advantages that can be had if only practical problems (mostly small, too) are solved. If I were to dictate the direction for the technology, it would be integration of the microinverter into the panel, and then standardizing on a super reliable yet cheap to manufacture AC mains wiring plug
I don't think it's an issue of microinverters, It's an issue of pricing, and economies of not scaling.
They really painted themselves into a corner with the single panel inverters, and forgot to innovate.
Like that Hoymiles inverter that Dave reviewed. Takes 4 panel, rated to 1500W (375W/panel) and the price of it in NL is 250EUR. You don't need extra boxes in the system. ENPHASE IQ8AC is 140 EUR, only good for 1 panel and only rated for 365W peak, needs an extra little box to connect to the internet. You really need to be a fanboy to spend more for the inverters than the panels themselves.
I don't think it's an issue of microinverters, It's an issue of pricing, and economies of not scaling.Agreed. I paid 550 euro for a 4.2kW inverter and attached 12 panels to the inverter. The Enphase inverters cost around 140 euro each + another 220 euro for the control box and overvoltage relay. The Enphase solution costs over 3 times more compared to the inverter.
The feeding into the grid is technically irrelevant. Even a stand alone system needs to meet building codes and be inspected. The only reason it matters is that the utility company won't approve your connection unless you show them a permit and inspection, so you can't do an off-the-books DIY if you want it grid tied.
I don't think it's an issue of microinverters, It's an issue of pricing, and economies of not scaling.
At 10M unit/ quarter I don't think lack of scale is a problem.
FYI, the exact same microineverters are also used in the Enphase battery solution:
They really painted themselves into a corner with the single panel inverters, and forgot to innovate.
Like that Hoymiles inverter that Dave reviewed. Takes 4 panel, rated to 1500W (375W/panel) and the price of it in NL is 250EUR. You don't need extra boxes in the system. ENPHASE IQ8AC is 140 EUR, only good for 1 panel and only rated for 365W peak, needs an extra little box to connect to the internet. You really need to be a fanboy to spend more for the inverters than the panels themselves.
I don't think it's an issue of microinverters, It's an issue of pricing, and economies of not scaling.Agreed. I paid 550 euro for a 4.2kW inverter and attached 12 panels to the inverter. The Enphase inverters cost around 140 euro each + another 220 euro for the control box and overvoltage relay. The Enphase solution costs over 3 times more compared to the inverter.
I'm in the very unconfortable position of having both a string system and an Enphase microinverter system and am looking to expand. Still unsure what I should do:
- Keep both systems and expand the enphase system
- Keep both systems and expand the string system with a new bigger hybrid inverter (for battery option)
- Scrap the string system and go 100% Enphase
- Scrap the Enphase system and go for one huge string hybrid inverter (or multiple if needed)
All well and good developing a system that lets the end user plug in the panels to an inverter,but then what? want to connect to your existing installation
And just checking for the panels themselves: the prices have dropped by more than 50% compared to when I bought the panels less than a year ago.