Enphase CEO says solar industry poised to rebound on falling interest rates and rising utility costs
Rafael Henrique | Lightrocket | Getty Images
Enphase Energy sees light at the end of the tunnel this year for the solar market after the industry has taken a beating from high interest rates.
High rates have depressed demand for residential solar installations in 2023, leaving companies such as Enphase saddled with too much inventory. Enphase manufactures inverters that convert solar energy into electricity that is compatible with the grid.
CEO Badri Kothandaraman is forecasting the company will see a bottom in the first quarter this year and then start to recover in the second quarter as a stuffed inventory channel is cleared.
Kothandaraman said rising utility rates combined with falling interest rates should also provide tailwinds this year.
“Make no mistake, utility rates are going up,” Kothandaraman told CNBC in an interview. “The interest rates are not going to be staying the same. People are finding better financial instruments like third-party leases.”
“All of those won’t move the market overnight but they are all steady steps to make sure that the industry will grow long term,” he said.
Enphase, YTD
Enphase shares soared more than 17% Wednesday despite the company reporting fourth-quarter earnings and revenue Tuesday afternoon that missed Wall Street estimates.
Enphase’s net income dropped 86% to $20.9 million in the fourth quarter compared to the year-ago period. The company’s revenue was down 58% to $302 million compared to the same quarter in 2022.
But Kothandaraman’s forecast that the solar market is on the road to normalization is lifting not just Enphase’s stock, but also the industry more broadly. The Invesco Solar ETF rose more than 5% in Wednesday afternoon trading.
Shares of Enphase’s competitor SolarEdge jumped more than 13%. The residential solar installers Sunnova and Sunrun were up about 14.5% and 5.2%, respectively.
Wall Street analysts’ reaction to Enphase’s earnings were mixed despite the stock rallying Wednesday. Bank of America’s Julien Dumoulin-Smith slashed his stock price target for Enphase by $3 to $69, which implies 31% downside from the company’s Tuesday close of $100.51.
“With limited visibility to a full recovery, we remain cautious on the outlook,” Dumoulin-Smith told clients in a Wednesday morning note.
Oppenheimer analyst Colin Rusch upgraded Enphase to outperform with a price target of $133, implying 32% upside from Tuesday’s close.
“While we expect ongoing volatility in shares, we are upgrading as we believe downside scenarios will now be fully built into expectations,” Rusch told clients in a Wednesday note.
— CNBC’s Pippa Stevens contributed to this report.
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Tesla is going to build a new Megafactory in Texas near Houston, according to a tax abatement agreement with Waller County.
At the time of writing, Tesla had yet to comment on the new project, but the Waller County Commissioners Court confirmed the project on Wednesday when they approved a tax abatement deal with the company:
Under the proposed agreement, Tesla will receive tax abatements from Waller County based on property improvements. The deal includes $44 million in facility improvements and $150 million in Tesla manufacturing equipment that Tesla will install. The next phase involves a new $31 million distribution facility with about $2 million in Tesla distribution equipment and building upgrades.
Tesla is going to take over a 1-million-sq-ft building that it already held the lease on at the Empire West industrial park near Katy, Texas – just outside of Houston.
Logistics company DB Schenker occupied the space where it handled parts for Tesla, but it will move out and Tesla plans to build Megapack production lines at the site:
Tesla will operate a new Megapack battery storage manufacturing facility at a 1 million-square-foot building, which was initially constructed with no tenant on speculation that it would attract jobs and economic development.
Tesla has previously referred to plants producing Megapacks as “Megafactory”. The company already operates one in Lathrop, California, and one in Shanghai, China, where it just started production.
Those factories are set up for a production capacity of 40 GWh worth of Megapacks per year.
It’s not clear if Tesla plans for a similar capacity at this new factory, but the county announced project should result in creating 1,500 jobs.
In addition to the existing building, the project will include the construction of an additional “600,000-square-foot distribution facility with some manufacturing capabilities.”
Unlike its automotive business, Tesla’s energy business has been growing at an impressive pace – although prices and margins have come down last year.
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![Is Genesis taking notes from Porsche? New GV60 Magma caught with the Taycan [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/Genesis-GV60-Magma-Porsche-2.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Genesis is gearing up to unleash its alter ego with its upcoming Magma lineup, its debut into the world of high-performance luxury vehicles. First up is the Genesis GV60 Magma, due out later this year. As testing wraps up, the GV60 Magma was spotted alongside none other than the Porsche Taycan.
The first dedicated Genesis EV model, the GV60, will kick off another new chapter for the Korean luxury automaker.
Genesis unveiled the GV60 Magma last March, claiming it will kick off “the brand’s expansion into the realm of high-performance vehicles.” The performance EV includes an improved battery, chassis, and motor for added performance.
The Magma model boasts a wider, lower stance for more control. Other key upgrades include a wider front air intake to help cool the batteries, motor, and brakes. It also includes air curtains to maximize efficiency and an added roof fin channels air to the rear wing, generating downward force.
Genesis upgraded the interior to match the GV60 Magma’s luxurious, sporty design. It includes unique sports car-like bucket seats with exclusive “double-diamond stitching” in the Magma orange and titanium coloring.
Genesis GV60 Magma spotted with the Porsche Taycan
With its official debut coming up, the sporty Genesis GV60 Magma was spotted testing alongside a Porsche Taycan and Hyundai’s IONIQ 5 and IONIQ 6 N models.
Despite the camouflage, the video from CarSpyMedia reveals a few new design elements, like the two-line headlight featured on the updated GV60 model.
Genesis will launch the GV60 Magma later this year in its home market, followed by the US, Europe, and others. Production is scheduled to start in the third quarter of 2025.
Will the Genesis GV60 Magma keep up with the Porsche Taycan or Tesla Model S Plaid? Priced and specs will be revealed closer to launch, but it will sit above the Performance AWD trim, which starts at $69,900 in the US. With up to 429 horsepower and 516 lb-ft of torque, it can hit 0 to 60 mph in 3.7 seconds.
| Horsepower | 0 to 60 mph (seconds) |
Starting Price | |
| Genesis GV60 Performance | 429 | 3.7 | $69,900 |
| Genesis GV60 Magma | ? | ? | ? |
| Porsche Taycan | 402 | 4.5 | $99,400 |
| Porsche Taycan Turbo GT (with Weissach Package) |
1,092 | 2.1 | $230,000 |
| Tesla Model S Plaid | 1,020 | 1.99 | $89,990 |
In comparison, the Porsche Taycan starts at $99,400 with up to 402 hp and a 0 to 60 mph time in 4.5 seconds. The Taycan Turbo GT, equipped with its Weissach package, packs 1,092 hp for a 0 to 60 mph sprint in just 2.1 seconds, but it costs $230,000.
Tesla’s Model S Plaid starts at $79,990 and can accelerate from 0 to 60 mph in 3.1 seconds with 1,020 horsepower. Which performance EV are you choosing?
Source: CarSpyMedia
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