Enphase Energy expands grid services to North America

Published 2025-02-06, 08:10 a/m
Enphase Energy expands grid services to North America

FREMONT, Calif. - Enphase Energy, Inc. (NASDAQ:ENPH), a leading global energy technology company valued at $8.8 billion, has announced the expansion of its support for grid services programs in Puerto Rico, Colorado, and Nova Scotia, Canada. According to InvestingPro data, the company maintains strong financial health with a current ratio of 3.53, indicating robust liquidity to support its expansion initiatives. These programs, also known as virtual power plants (VPPs), leverage energy stored in home batteries to alleviate the electric grid during high demand, providing incentives to homeowners. While Enphase’s stock has experienced a 35% decline over the past six months, InvestingPro analysis suggests the company is currently undervalued, with analysts maintaining a moderate buy consensus and projecting 14% revenue growth for FY2025.

In Puerto Rico, participants with three IQ Battery 5Ps can earn approximately $1,000 annually through the LUMA Energy Puerto Rico Customer Battery Energy Sharing Program, by delivering up to 80% of their battery capacity during demand response events.

Similarly, in Colorado, Xcel Energy (NASDAQ:XEL) customers installing an Enphase IQ Battery may receive an upfront incentive of $350/kW, up to $5,000 per site, plus an annual $100 over five years. Three IQ Battery 5Ps could yield $4,032 upfront for homeowners.

The Efficiency Nova Scotia Eco Shift Pilot offers $500 upfront and an average seasonal performance incentive of $300 per kW delivered. A 15 kWh system with three IQ Battery 5Ps could net up to $1,500 per year if the batteries provide up to 80% of their capacity during demand response events.

These grid services aim to reduce reliance on conventional power plants, thereby supporting a more resilient and sustainable energy grid. They also offer homeowners the opportunity to maximize the value of their solar and battery systems.

Ken Fong, Enphase’s senior vice president and general manager for the Americas and APAC Sales, emphasized the ease with which homeowners can participate in these programs and the long-term value offered by the IQ Battery 5P.

The expansion of these grid services by Enphase underscores the company’s commitment to enhancing grid reliability and promoting a cleaner energy future across North America. This announcement is based on a press release statement from Enphase Energy, Inc.

In other recent news, Enphase Energy has been the center of attention among various analyst firms. Craig-Hallum reduced Enphase Energy’s stock target to $101, citing a modest revenue beat and notable gross margin strength in recent earnings. Jefferies, on the other hand, adjusted Enphase’s target to $54, maintaining an Underperform rating, despite the company’s fourth-quarter margin surpassing expectations.

Canaccord Genuity (TSX:CF) analysts upgraded Enphase Energy shares from Hold to Buy, setting a new price target of $82. This followed Enphase Energy’s fourth-quarter results, where the company reported revenues of $382.7 million, a 26.5% increase year over year, and adjusted earnings per share (EPS) of $0.94, marking a significant 74.2% rise from the previous year.

Northland analysts maintained their Outperform rating and $90.00 price target for Enphase Energy. They attributed the company’s better-than-expected results to higher gross margins, driven by strong demand for its microinverters that meet domestic content requirements in the United States.

Lastly, Oppenheimer maintained a positive outlook on Enphase Energy, raising the price target to $103 from $101, while keeping an Outperform rating on the shares. The firm’s analysts cited the company’s fourth-quarter results and forward guidance, which surpassed Wall Street’s expectations, as reasons for the adjustment. These are the recent developments surrounding Enphase Energy.

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