American microinverter manufacturer, Enphase has said that the changing policy landscape in the UK will “not significantly impact” its business.
Speaking on an earnings call for the company’s Q2 2015 results, Enphase Energy’s CEO Paul Nahi reiterated his company’s optimism for the UK solar market. Asked if the series of policy announcements made by the government would adversely impact Enphase, Nahi replied: “I believe we will still continue to see some policy shifts occurring in the UK, however it is not significantly impacting our business.”
Nahi said the company has enjoyed “strong demand” for its solar energy systems in the US, Australia and Europe, resulting in record shipments of 195MW for the second quarter of this year. However, Nahi warned that Enphase was still “relatively young” in the UK, adding that there is “a lot of market share” ahead of the company.
Nahi continued: “The brand is growing. The teams are executing very well and I expect to see continued growth in the UK market.”
One area that Nahi was confident will experience growth in the near term is the company’s energy storage solution. Nahi said that the excitement over the company’s modular energy storage system was “palpable”, with UK set to be a major market for the product. He explained: “When you talk to customers in Australia, in the UK and Continental Europe, the ability to size the storage solution for that specific application, for that specific customer, is critical in optimising the return on investment.”
In terms of the economics of the energy storage market, Nahi expects that maximising solar PV onsite consumption will drive the UK energy storage space. He added: “What's exciting about it is that there is a real economic case for storage – whether it's a zero export rule that's happened in Queensland, whether it's a reduction of the feed-in tariff in New South Wales, whether it's taking advantage of the feed-in tariff programme in the UK, or the demand and the desire for self consumption in Continental Europe – all of this requires the coupling of solar generation with storage.”
Internationally, the company made a second quarter revenue increase year-on-year of “nearly 200%” in Australia and New Zealand, while overall revenue in non-US markets was up 37%. Asked about expansion plans in the Asia Pacific region, Nahi refused to be drawn, but hinted that a territory or multiple territories “further north” in the region were of interest.
Enphase Energy quarterly earnings call transcribed by Seeking Alpha. Additional reporting by Andy Colthorpe.
