Is Competition Poised to Heat Up in Solar Inverters?

In the last 18 months there have been numerous competitive announcements within the rooftop solar inverter space. These range from Generac’s microinverter acquisition in July 2021, to Sunrun funding an upstart provider (Lunar Energy) earlier this year, to Tigo announcing it plans to come public this week. In addition, we flag the expiration of Enphase’s exclusivity with SunPower in first-quarter 2024. Germany’s SMA also plans to launch a new residential solar inverter product for the U.S. market in second half 2023. These announcements highlight the fact that capital is flowing to the highly desirable rooftop solar inverter space, which possesses industry-leading margins.