SunPower Corporation SPWR has reached another agreement with Enphase Energy, Inc. ENPH to produce the new Enphase Energized™ Maxeon AC Module. This will feature a factory-integrated seventh-generation Enphase IQ™ microinverter. The deal extends the two companies’ existing partnership since June 2018.
Beginning the fourth quarter of 2020, Maxeon Solar Technologies —the planned spin-off from SunPower — will be distributing the module to residential customers in the international markets.
Enphase's unique software-defined architecture and semiconductor incorporation will leverage Enphase IQ 7™ series microinverters and simplify solar installations. Also, it will provide a complete AC solution that produces no high-voltage DC along with delivering a safe solar energy for homeowners.
Benefits of the Deal
Enphase IQ 7+ microinverters are capable of streamlining the design and easing the installation process. The Energized Maxeon AC Modules will benefit SunPower global installers with an enhanced capital management, hassle-free logistics and operations, accelerated design, and a faster and more cost-effective installation.
The combination of the Maxeon panels with the Enphase microinverters is expected to boost performance, reliability and safety to the Australian solar market. The company aims to provide high quality solar systems and this pact will act as a ready-made solution for meeting such targets. The new module will be a strategic fit for the high-volume residential market as it synthesizes the optimal efficiency of SunPower solar technology with the factory-assembled microinverters of finest quality from Enphase.
Global Solar Boom
Per an International Renewable Energy Agency (IRENA) report, global electricity generation from solar power is expected to increase to nearly 360 GW per year by 2050 from the current level of 109 GW.
To reap the benefits of this booming solar market, companies across the globe are expanding distribution, thereby bolstering the top and the bottom line. In September 2019, Enphase Energy announced its strategic partnership with Sunrun RUN, per which the former supplies seventh-generation IQ microinverters to Sunrun for installations at the latter's residential solar projects.
In August 2019, Canadian Solar Inc. CSIQ signed a contract for providing Operations & Maintenance services to three Australia-based solar photovoltaic plants with an aim to minimize downtime and increase site availability.
Zacks Rank & Price Performance
SunPower’s stock has rallied 38.2% in the past month, outperforming the industry’s increase of 24.9%.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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