SolarEdge Clarifies Energy Storage Division Exit

An announcement from SolarEdge had some scratching their heads over the future of the firm’s involvement in battery storage. Here’s what’s happening.

SolarEdge has announced the company will cease all activities of its Energy Storage Division to focus on its core solar activities. The decision will see approximately 500 employees lose their jobs, mostly in South Korea.

“The decision to close our Energy Storage division was the result of a thoughtful analysis of our portfolio of businesses and product lines, industry trends, and the competitive environment,” said interim CEO Ronen Faier¹.

It’s the company’s intention to sell assets related to the storage division, including manufacturing facilities for battery cells and packs. But there was also a somewhat vague statement in the release that wasn’t really explained further.

“This does not impact the solar business sale of batteries for residential and C&I markets.”

So, What Gives?

SQ’s Jono (who is also a SolarEdge Home Battery owner²) contacted the firm yesterday and received the following reply from Gavin Merchant, SolarEdge’s Country Manager for Australia and New Zealand:

“The recent announcement regarding the closure of our Energy Storage Division has no impact on our solar-connected battery business. SolarEdge continues to develop, produce, and sell both residential and commercial & storage solutions.

 

This decision relates exclusively to the manufacturing of lithium-ion cells and BESS solutions for utility-scale markets, which was the focus of the Energy Storage Division. Our commitment to delivering reliable storage solutions for residential and commercial markets remains unchanged, including both our current offerings and the development roadmap for future innovations.

 

Residential and Commercial storage has been an extremely successful component of our product and service offering since 2016 (particularly in Australia) and we’re looking to further develop and enhance that capability into 2025.”

Third Quarter Results

In other relatively recent SolarEdge news, the firm released its financial results for the third quarter ended September 30, 2024 early this month.

The company reported revenues of  USD $260.9 million, which was down 2% from $265.4 million in the prior quarter and down 64% from $725.3 million in the same quarter in 2023. Revenues from its solar segment were $247.5 million, up 3% from $241.2 million in Q2 and down 63% from $676.9 million in Q3 last year.

The firm reported 850 Megawatts (AC) of SolarEdge inverters were shipped during Q3, and 189MWh of batteries for PV applications.

For this quarter, revenues are expected to be within the range of $180 million to $200 million.

This week’s announcement wasn’t the first this year signaling staff reductions. In late January SolarEdge revealed a restructuring plan that included approximately 900 employees being laid off; around or 16% of its workforce at the time. In July, then-CEO Zvi Lando said a further 400 employees would go (not long before he did in a way – see footnotes).

SolarEdge Isn’t Robinson Crusoe

SolarEdge isn’t alone in facing tougher times, with most manufacturers in the solar space feeling the pinch of particularly fierce competition among other issues.

Other premium solar inverter manufacturers such as Enphase, Fronius and SMA have also shed staff; or are preparing to do so. Earlier this month, SMA said further “optimising” of its organizational structure and processes will result in job cuts by the end of 2025 impacting up to 1,100 full-time positions worldwide. Approximately two-thirds of the positions will be in Germany.