SolarEdge manufactures inverters and power optimisers for residential and commercial solar systems. Solar inverters convert the DC power produced by solar panels to AC, which is used to power electronic appliances and devices. SolarEdge’s accompanying power optimisers are fitted to each solar module and track the maximum power point of each individual panel, increasing the energy output of the overall solar system. The company also manufactures energy storage solutions and EV chargers for the home and is also growing its position in electrical powertrain units and batteries for EVs themselves. SolarEdge is headquartered in Israel but listed on the US stock exchange.
Impact Score: 28%
SolarEdge inverters and power optimisers maximise the energy output of a rooftop solar system compared to older-style string inverters. All of SolarEdge’s products are critical technologies for decarbonisation as Solar PV is a nearzero emission technology. As one half of a duopoly in its largest market, and the global leading supplier of power optimisers, SolarEdge is highly differentiated.
Fundamental Quality: 72%
SolarEdge is the number one supplier of solar inverters globally and has leveraged its strong value proposition to rapidly take share from incumbents. It has one half of the effective duopoly held by module level power electronics (MLPEs) companies over the American solar market. Its large network of loyal third-party installers, and technological superiority to older-style string inverters, create a moat around its competitive position and should support share gains in its newer markets.
(per £1m invested) Cleaner Energy:
- New portfolio company as of November 2021
