SolarEdge Reports Record Revenue In Financial Earnings Report
Israeli-based solar inverter manufacturer SolarEdge revealed record revenue for the quarter ending June 30, up 13.9% on the previous quarter and 120.8% year-over-year.
SolarEdge’s financial calendar reaches its conclusion on June 30, when many other companies around the world are only nearing the halfway mark, so SolarEdge’s financial report was for the fourth quarter and year ended June 30. The company revealed record quarterly revenue of $98.4 million, which is up 13.9% on the previous quarter, and 120.8% on Q4’14’s $44,573 million.
This helped push their year-ending revenue to record levels as well, reaching $325.1 million, a growth of 144% year-over-year.
284 MW worth of inverters were shipped for the fourth quarter, bringing the year’s total up to 920 MW. GAAP gross margin sat at 28.7% for the quarter and 25.2% for the fiscal year, with GAAP net income for Q4’15 of $13.8 million, and $29.4 million for the fiscal year.
“We completed fiscal 2015 with strong execution on all fronts,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “We successfully grew our business with our existing and new customers and generated record revenue for the fourth fiscal quarter and the entire fiscal year. Our increased manufacturing capacity coupled with continued cost reduction, brought gross margins to a quarterly and annual record. These revenue and cost reduction initiatives generated strong bottom line results; consecutive profits in each quarter of fiscal 2015 and strong cash flow from operations.”
SolarEdge’s operating expenses for the fiscal year 2015 came in at $53.5 million, up 32.7% on the previous year, with operating income of $28.3 million well exceeding the operating loss of $18.4 million in fiscal year 2014.
The company also provided financial outlook for the first fiscal quarter of 2016, with revenue expected to be within the range of $108 million and $112 million, and gross margins to be within 27% and 29%.
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So what is the secret to Solaredge’s rise? Do they make it cheaper, better or what? By the way, all the inverter companies may be interrupted soon by Google’s inverter. Announcement due in January 2016. Spec’s: at least 50 watts per cubic inch. About 10 times smaller than any existing household inverter. A nice companion to Google’s friend, Elon Musk’s powerwall battery.
Have you seen any indication that someone may be able to produce a 50 watts per cu in inverter? Or get anywhere close?
Have you ever seen anything like a watts/cu in chart? Any indication that inverters are shrinking? (I’ve got this monster hanging on my wall and some day it will need replacing.)
I leave my monsters under the bed.
Size and cost might have some relation but other things equal, cost wins, IMO.
Efficiency could reduce inverter size somewhat, since the heatsinks and cooling fans could decrease. There are some slowly decreasing solid state costs as devices become ever more efficient.
If size is pushed too much, cost could rise.
The 18 finalists will be announced on October 21. Submissions had to be completed in 2014, they will all be tested at NREL for a period of 100 days. The winner will receive 1 million dollars in Jan. 2016. The description is 50 watts or less, per cu in. Doesn’t it remind you of a suitcase size desktop ending up as an Ipad? I really don’t know why Google thinks this is important but it seems to anticipate a huge market involving PV and batteries.
GCO is sceptical, he thinks it is not even “vapor”. I remain merely curious, and do not have an opinion of the realism of the announcement, since it is completely outside my area of expertise. We shall see.
I do appreciate all the answers to the curious rise of solaredge, considering that there are number of quality inverter makers out there with long histories, I wondered what the mojo of this company is. It seems it is quality, price, the ability to optimize panels through mppt, and ease of use. Apparently a winning combo.
Just looked at Enphase microinverter. When the dimensions are calculated it turns out to have 5 watts per cu. inch. So 50 watts is exactly ten times smaller. If we imagine the enphase 225 watt microinverter as a 1.6 inch cube then that is what Google is aiming for.
So you’re talking about a future announcement of the result of a contest asking participants, which may include existing manufacturers, to submit prototypes for testing. There is zero indication that any of them will be successful, let alone that what they come up with could be made economically.
It’s not even vaporware — vapor at least we already know how to make.
I think that inverter cost, not physical size, will remain the main factor for stationary applications (and btw, at now less than 25c/W, SolarEdge nails it there).
On the other hand, if your company also happens to have projects involving, say, large stuff meant to be mobile or even airborne… *cough*wind turbines*cough*link*
Yes. I found SolarEdge costs pretty standard for the type and performance. Things like power factor and harmonics can add some cost.
I notice a sharp trend towards lower cost/kw as sizes increase from 1kW to 10kW, only doubling cost.
Really large inverters could get lower costs/kw than that.
Yes, it could be vapor. But irresistible if produced. That shiny little ipad hanging on your wall: “oh well, its a few more bucks, but look, look, so cool”!
spot on.
Solaredge may do many things but cheaper is not one of those.
If its a 400V input inverter type, as in grid tied, I don’t see any difference in their inverter costs. They are about the same as any other grid tied of their ilk. Cost/kw drops like a stone as size is increased.
If you add the separate optimizer, maybe the system is more expensive than one with a single MPPT.
But the inverter can be used with a single MPPT, too. Then cost is about the same.
Its just that you then need to use string tied modules with a single MPPT.
Low voltage inverters used off grid with Lead Acid are lower cost. Apples and Oranges. They require chunkier copper at low voltage.
Don’t know about the relative VARS, efficiency, and harmonics
Not sure about financially, but technically, they have a sweet method. The inverters have some nice built in features like automatic power off in the event of grid failure or PV cutout.
They use a system with optimizers per module. Zero interaction between shaded modules and each is a very high efficiency DC-DC. The outputs all combine before they enter the DC-AC inverter.
This makes adding battery storage easier.
Contrast to the micro inverter topology which forces a battery per unit and the location on the roof. Not good.
They are a Tesla PowerWall partner. I look forward to good things from them.
Solaredge does have some cost advantages over Enphase. Their main inverters are about 20c/watt and the panel level optimizers are another 20c/watt for a total of 40c/watt. Enphase is still 60c/watt. The system output is similar to microinverters as they do bypass panels with shade/fault etc. so that the whole string does not suffer. Extensive tests under similar conditions for the two types of systems results in approximately same energy output over the year. The optimizers are also much simpler than microinverters and less prone to failure but long term use data is lacking as neither system has been in the market too long. Microinverter system install is simpler and expandibility is superior. If DC-DC battery charging is needed then SolarEdge is the winner as eveee pointed out. I think these two will dunk it out for some time.
agreed. good comment indra.
yes they do it very differently. they are dc optmised. which means they manage the arrays voltage if one panel is shaded. this allows the array to perform at optimum vs regular MPPT which lowers entire array peformance. so you dont know how their patents work and then you pull out some random comment about something that doesnt even exist yet. solaredge are elons inverter choice for his powerwall along with fronius. this is what limits the powerwall it doestn work with many inverters. whereas samsung and lg chem work with lots of inverters. you really have no idea do you?