SolarEdge Ahead of Quarterly Figures: Is Now Your Entry Opportunity?

Solar Stocks

The conditions for the solar industry in the coming years are excellent. Solar energy will continue to grow strongly for decades to come in order to cope with the energy transition. Bloomberg also recently issued a positive forecast.

The Forecast For Newly Installed Solar Systems Has Just Been Increased

At the end of January, industry experts increased their forecast of new solar capacity installed in 2022 from 206 gigawatts to 228 gigawatts. That would be a whopping jump of almost 25% compared to 2021. And installations are expected to continue to rise in the years beyond, as you can easily see in the chart below:

Among the reasons cited by Bloomberg was that the bottleneck in the production of polysilicon should ease this year. This will cause prices of both silicon and photovoltaic modules to fall while efficiency improves.

Rising Electricity Prices Make Solar Plants Interesting

Such systems are becoming interesting due to the rising price of electricity. I, too, am currently considering building a photovoltaic system. I heat my house with a heat pump and drive an electric car. So all the energy I need is electric. With a photovoltaic system, I can make myself less dependent on the high price of electricity and contribute less to climate change. Other consumers and businesses are likely to see it the same way.

So everything points to a booming solar market, and I identified SolarEdge (SEDG) as one of the main beneficiaries of this development years ago. The company primarily makes inverters and power optimizers for photovoltaic systems. But they also make power storage, wallboxes for electric cars, and monitoring systems for solar installations.

Competitor Enphase Energy Presented Excellent Figures

SolarEdge competitor Enphase Energy (ENPH) also proved how strong this industry is last week. The company reported strong growth, a new revenue record and earnings per share that were well above expert estimates. This also pulled SolarEdge up with it, as investors now expect similarly good results.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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