SolarEdge found a solution to the components shortage
5 May, 2021
"We have adopted a methodology to closely monitor the procurement of components by our contract manufacturers and at times manage the supply and demand directly"
During the first quarter of 2021, SolarEdge Technologies’ solar business continued to grow across all geographies and segments. The Company reported revenues of $405.5 million, up 13% from $358.1 million in the prior quarter and down 6% from $431.2 million in the same quarter last year. Beyond smart solar solutions, It also began delivering powertrain units and batteries for the electric version of the very popular Fiat E-Ducato light commercial vehicle, in line with its growth strategy to enter new markets.
Zvi Lando, SolarEdge’s Chief Executive Officer, said during the earnings conference call, that the company where able to overcome the shortage in components hitting the industry. “We have adopted a methodology to closely monitor the procurement of components by our contract manufacturers and at times, manage the supply and demand of components directly from their suppliers. This allows us to identify relatively early cycles of shortages.
“We also typically hold high levels of safety stock and finished goods inventory that allow us to overcome temporary fluctuations of component availability. In addition, we have developed alternate sources for critical components. As a result at this time we are comfortable in our ability to support the increased demand we are seeing and our projections for the rest of the year.”
Residential Batteries with a Brain
SolarEdge is now preparing to launch a residential battery and is operating test sites in the U.S. These batteries will be shipped to the U.S., Europe and later to Australia. These are unique energy storage units, managed by smart algorithms. Lando: “In a recent study of our global installed base of more than 30,000 systems of SolarEdge backup inverters we analyzed consumer behavior patterns and system performance through more than 75,000 blackout events lasting more than 5 minutes.
“We characterized in detail typical blackout frequencies, duration, the power and energy capacity needs as well as practices to prevent depletion of batteries and extended blackout events. We will be incorporating these learnings into our system in conjunction with the maximization of self-consumption and financial decision-making algorithms in order to enable smart automated system decisions. We don’t plan for meaningful battery revenues until Q3 of this year. Given the growing demand for energy consumption and storage, we are confident that our storage-ready inverters fitted with our DC coupled battery represent a significant milestone in our vision of a home systems.”