MILPITAS, Calif. - SolarEdge Technologies, Inc. (NASDAQ: NASDAQ:SEDG) and Summit Ridge Energy (SRE) have announced a partnership to supply inverters and Power Optimizers for SRE's commercial solar installations across the United States. The collaboration aligns with SolarEdge's plans to boost domestic manufacturing, which has already resulted in approximately 1,750 new jobs in Tampa, Florida, and Austin, Texas. According to InvestingPro data, this expansion comes as the company faces challenging market conditions, with revenue declining 70% in the last twelve months to $1.05 billion.
SRE will standardize its rooftop solar installations with SolarEdge's inverter solutions, with projects expected to surpass 100 megawatts (MW). The initial shipments from SolarEdge's Tampa facility are slated to begin in April 2025. This agreement underscores both companies' commitment to strengthening American energy independence and supporting domestic supply chains. While the stock has experienced significant volatility, falling over 80% in the past year, analysis from InvestingPro suggests the company may be currently undervalued.
Mike Dillon, Senior Vice President of Operations at Summit Ridge Energy, emphasized the partnership's dedication to utilizing American-made components for their solar energy projects. Dillon highlighted the benefits of leasing large-scale industrial rooftops, which include enhancing local electric grids' resilience and creating job opportunities.
Naama Ohana, Chief of C&I Division at SolarEdge, expressed excitement about expanding the company's manufacturing presence in the U.S. and highlighted the role of clean energy and advanced manufacturing credits in providing the fiscal certainty necessary for such investments.
SolarEdge, recognized as a global leader in smart energy technology, has been pioneering intelligent inverter solutions that optimize power generation in photovoltaic (PV) systems. The company offers a range of energy solutions, including storage, EV charging, and grid services. InvestingPro analysis reveals the company maintains a healthy current ratio of 2.34, though it operates with moderate debt levels. Discover 13 additional exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
Summit Ridge Energy, known for its financial innovation and execution in the commercial solar sector, has rapidly grown since its inception in 2017. The company has raised over $5 billion in project capital, financing more than 200 solar farms, and contributing to American energy independence.
This press release contains forward-looking statements regarding the anticipated benefits of the partnership, the timing of shipments, and the support of domestic supply chains. These statements are subject to various risks and uncertainties, and actual results may differ materially.
The information for this article is based on a press release statement from SolarEdge Technologies, Inc.
In other recent news, SolarEdge Technologies has been the focus of several significant developments. Citi analyst Vikram Bagri downgraded SolarEdge's stock from Neutral to Sell, citing a challenging year for the sector and specific hurdles for the company, including tight liquidity, a difficult earnings forecast, and increased competition. In contrast, Goldman Sachs analyst Brian Lee and Canaccord Genuity analyst Austin Moeller have reaffirmed a Buy and Hold rating respectively, on the stock, citing new agreements and expected operational expenditure savings as the driving factors.
SolarEdge has also been undergoing restructuring, including a global workforce reduction of approximately 400 employees, aiming to improve operational efficiency and financial stability. The company anticipates savings of approximately $9 million to $11 million in quarterly expenses post-restructuring. Furthermore, SolarEdge has entered safe harbor agreements with two leading U.S. residential solar installation and financing companies, including Sunrun (NASDAQ:RUN), to supply domestically produced inverters, Power Optimizers, and batteries throughout 2025.
The company also completed its second sale of production tax credits, which supports the company's free cash flow guidance. In a significant leadership change, the company appointed Dalia Litay as its new Chief Legal Officer, effective January 1, 2025. These recent developments are expected to be the focal point for investor discussions at the upcoming Goldman Sachs Energy, CleanTech & Utilities Conference.
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