SolarEdge

SolarEdge Ships US.-Made Inverters to Europe

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photo above: SolarEdge’s solutions portfolio

SolarEdge has ramped up production at its three manufacturing facilities in the United States and has begun shipping U.S.-made products to Europe. This move marks the culmination of a process that has been unfolding gradually for more than a year and now appears to be complete. The company has shut down manufacturing operations in China, Mexico, and Hungary, while retaining a limited production footprint in Asia, primarily through a contract manufacturer in Vietnam.

In Israel, SolarEdge continues to operate the Sela-1 manufacturing facility, located in the Ziporit industrial zone. This site is dedicated to short production runs and manufacturing optimization, leveraging its proximity to the company’s R&D center in Israel.

The Texas facility focuses on single-phase inverter production, the Utah plant specializes in residential battery systems, and the Florida site manufactures three-phase inverters and solar panel power optimizers. The scope of this transformation was disclosed during the company’s earnings call in September 2025. The CEO, Shuki Nir, stated that SolarEdge intends to anchor the majority of its manufacturing in the United States. “We plan to manufacture in the U.S. and distribute U.S.-made products both locally and globally for many years to come.”

Today, SolarEdge employs approximately 3,400 people worldwide. While the company does not provide a geographic breakdown, it reported in June 2025 that its three U.S. manufacturing plants employ around 2,000 workers. This week, SolarEdge announced a key milestone in executing its new manufacturing strategy: the shipment of its first U.S.-made residential inverters to Europe, with initial deliveries to Italy, France, and the Netherlands. The company is now preparing for the first European shipments of its commercial and industrial systems, scheduled to leave the Florida plant in early 2026.

The Generic Solution Strategy

Alongside the reconfiguration of its global manufacturing footprint, SolarEdge is redefining its portfolio to improve marketability while streamlining manufacturing, logistics, and the supply chain. Under this new approach, the company is consolidating product lines to reduce the number of SKUs, with each SKU designed to serve multiple applications or markets. SolarEdge refers to this strategy as Single SKU—an ambition to deliver a unified model, or a very small set of models, capable of addressing a broad range of use cases and geographies, instead of maintaining a large portfolio of distinct variants. In Europe, this concept is marketed under the name MultiRange.

For example, rather than producing separate inverters for Europe and the U.S., SolarEdge aims to manufacture a single inverter platform, with market- or application-specific customization handled through software, configuration settings, or auxiliary components. The company has indicated that this approach will be implemented in upcoming products, including the SolarEdge Nexis Solution, an integrated residential system combining solar energy generation and storage.

The goal is to deliver a unified platform that supports solar production, energy storage, self-consumption, and backup power during grid outages. SolarEdge is now applying the same design philosophy to its commercial and industrial product lines, with the objective of aligning them as well with the Single SKU strategy.

SolarEdge and Infineon to Develop Ultra-Efficient Electronic Transformer for Data Centers

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SolarEdge Technologies and semiconductor giant Infineon Technologies have announced a collaboration to develop a solid-state transformer (SST) rated at 2–5 megawatts, designed to power high-consumption data centers — particularly those supporting AI compute workloads. The joint solution aims to dramatically improve power-conversion efficiency by enabling a direct link between the grid’s medium-voltage AC supply and a data center’s internal DC network. For SolarEdge, this represents its first significant move into the data-center infrastructure space.

At the technological level, the joint project fundamentally redefines how modern data centers are powered. Today, electricity typically enters at medium voltage (13–35 kV AC) and passes through a long chain of conversions: first to 400 V AC, then to 230 V AC, and finally to 12–5 V DC for the servers. Each step causes 5–10% energy loss. The new solid-state transformer shortens that chain by converting directly from medium-voltage AC to high-voltage DC (800–1500 V) with efficiency exceeding 99%, allowing data-center DC systems to be powered directly — with fewer conversions, less heat, and smaller equipment.

The SST’s uniqueness lies in the fact that it is “solid-state” — with no moving or magnetic components. Instead of traditional copper windings and iron cores, it relies on high-speed electronic switching built on Infineon’s silicon-carbide (SiC) power semiconductors, combined with SolarEdge’s digital power-control architecture. This enables very high switching frequencies, precise real-time control, and compact, lightweight packaging. The architecture also allows seamless integration of multiple power sources — grid, battery storage, or solar — managed intelligently according to load.

For data-center operators, this represents a major step toward a DC microgrid model, where energy distribution is managed dynamically, much like computing resources. In such an architecture, power management becomes part of the IT layer itself: algorithms regulate current flow, balance loads in real time, and enhance the facility’s overall energy and operational efficiency.

For SolarEdge, entry into the data-center segment presents both vast opportunity and a significant test. In recent years the company has repeatedly sought to diversify beyond its solar-inverter core — into lithium-ion storage systems, EV chargers, and UPS solutions — but most of those ventures ended in disappointment. Products struggled to reach profitability, adoption was slower than expected, and some projects were eventually written off or shuttered.

Against that backdrop, the partnership with Infineon is both a strategic opportunity and a maturity test: can SolarEdge leverage its deep expertise in power electronics to establish a foothold in a new, high-growth market — or will another attempt to move beyond the sun end in another burn?

SolarEdge Shifts Core Manufacturing to the U.S.

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Photo: SolarEdge’s manufacturing facility in Tampa, Florida. Source: SolarEdge

The Israeli-founded solar technology company is executing its strategy to relocate the bulk of its manufacturing to the U.S., with the first shipments of residential solar systems leaving its American plants for Australia. Broader global deliveries are scheduled to begin next quarter, including commercial and industrial products. Production is currently spread across facilities in Utah, Texas, and Florida.

Following the announcement, SolarEdge’s market value climbed to approximately $2.22 billion. The move was outlined just last month, when CEO Shuky Nir told investors that SolarEdge would anchor its long-term production in the U.S.—not only for the domestic market but for global customers as well. “We intend to manufacture in the U.S. and ship American-made products both locally and worldwide for many years to come,” Nir said.

A Strategic Pivot Away from Israel?

The strategy leverages SolarEdge’s three U.S. plants: the Texas facility producing inverters for the residential market, the Florida facility building inverters and power optimizers for commercial installations, and the Utah site manufacturing residential solar storage batteries.

Producing in the U.S. serves several purposes. It reduces reliance on the “Made in Israel” label, which has faced growing marketing challenges; it aligns with the Trump administration’s push to bring high-tech manufacturing to American soil; and it enables customers to benefit from the revamped American Energy Tax Credit, which grants transferable tax credits—effectively cashable—for U.S.-made renewable energy systems.

The incentive has also helped SolarEdge secure tens of millions of dollars in local financing to expand its American plants. The company currently reports a global headcount of about 3,400, though it has not disclosed the breakdown between Israel and the U.S. In June 2025, it confirmed that its three American factories employed around 2,000 workers—signaling a clear shift of operational gravity away from Israel.

In Q2 2025, SolarEdge posted revenues of $289 million, compared with $265 million in the same period last year. Net loss stood at $125 million, slightly improved from a $131 million loss a year earlier. For Q3, the company forecasts sales of $315–355 million.

SolarEdge Embraces Trump’s “America First” Policy

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SolarEdge has strategically aligned itself with the new reality shaped by President Donald Trump’s “America First” agenda. Speaking on Thursday’s earnings call, following the release of its quarterly results, Company’s CEO Shuki Nir stressed that SolarEdge intends to anchor most of its production in the U.S., positioning the country as its primary manufacturing hub.

Nir pointed to the recently enacted federal tax law, known as the Big Beautiful Bill, as a key factor in the decision. The legislation grants a dedicated tax benefit for advanced manufacturing, locked in for the next seven years. “The law validates our multiyear strategy of bringing manufacturing to U.S. soil by preserving the tax benefit for the next seven years,” Nir said. “We intend to produce in the U.S. and distribute U.S.-made products both domestically and globally for many years to come.”

SolarEdge already operates manufacturing sites across several states: residential inverters in Texas, commercial inverters and power optimizers in Florida, and battery production in Utah. “We plan to ramp up production toward the end of the year to support exports,” Nir noted, without addressing whether the company will scale back output in Europe, Asia, or Israel.

While expanding its U.S. footprint, the company is also seeing signs of recovery in Europe. “Our pricing and promotional campaigns have shown early signs of success,” said Nir. “Most of our partners reached normal inventory levels toward the end of the second quarter, and we saw initial profits in Europe.” Still, he acknowledged that the company’s market share on the continent remains below historical levels, leaving room for growth.

On tariffs, SolarEdge expects the impact on profitability in the second half of the year to be milder than initially forecast—around 2%, compared to an earlier estimate of 4% to 6%. “We believe we can fully offset this impact in 2026, after pricing adjustments,” Nir said.

Strong Second Quarter Performance

SolarEdge reported a particularly strong second quarter for 2025, with broad improvement across nearly all operational and financial metrics. Revenue reached $289.4 million, up 32% from the previous quarter—marking the second consecutive period of both sequential and year-over-year growth, a sign of stabilization after a prolonged downturn.

Margins also improved. GAAP gross margin rose to 11.1% from 8% in Q1, while non-GAAP gross margin climbed to 13.1% from 7.8%. The company attributed the gains to higher sales volumes and operational efficiencies, though new U.S. tariffs still trimmed about one percentage point from profitability. Cash flow strengthened as well: net cash, after debt, stood at roughly $132 million—an increase of $19 million from year-end 2024—driven by prudent management, reduced inventory levels, and stronger operating cash flow.

For the third quarter, SolarEdge projects revenue between $315 million and $355 million. Non-GAAP gross margin is expected to reach 15% to 19%, including an estimated two-percentage-point drag from tariffs.

Nir expressed confidence in the company’s trajectory. “This was our second consecutive quarter of year-over-year and sequential revenue growth, along with margin expansion,” he said. “We are staying laser-focused on elevating our execution and advancing our strategic priorities, positioning SolarEdge for the opportunities we see ahead.”

With rising revenue, improving margins, stronger cash reserves, and a positive outlook for the next quarter, the company is signaling a return to growth momentum.

SolarEdge Continues Its Upward Momentum

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SolarEdge is reporting a particularly strong second quarter for 2025, showing significant recovery across nearly all operational and financial indicators. Revenue reached $289.4 million, a sharp 32% increase compared to the previous quarter. This marks the second consecutive quarter of both quarterly and year-over-year growth, signaling a clear trend of stabilization following a prolonged downturn. The company’s stock responded positively, posting modest gains in pre-market Nasdaq trading.

Profit margins are also showing signs of recovery. GAAP gross margin reached 11.1%, up from 8% last quarter. On a Non-GAAP basis, margins rose to 13.1% from 7.8%. The improvement is attributed to higher sales volume and operational efficiency measures, although new U.S. tariffs continue to weigh slightly on profitability, reducing margins by approximately one percentage point.

The company also reported a notable improvement in its cash position. Net cash, after subtracting debt, stood at approximately $132 million—an increase of $19 million from the end of 2024. This growth reflects prudent financial management, reduced inventory levels, and improved cash flow from operating activities.

Looking ahead, SolarEdge expects the positive trend to continue. The third-quarter revenue forecast stands between $315 million and $355 million. Non-GAAP gross margins are expected to expand further, reaching 15%–19%, even after accounting for a roughly two-percentage-point hit from tariffs.

CEO Shuki Nir expressed confidence in the company’s progress, stating:
“This is the second consecutive quarter in which we’ve demonstrated revenue growth—both sequentially and year-over-year—alongside improving profit margins. We are working diligently to bring SolarEdge back on track, and the numbers clearly show that our efforts are paying off.”

This latest report marks a new phase in SolarEdge’s recovery. With rising revenue, improved profitability, stronger cash flow, and an optimistic outlook for the next quarter, the company signals a return to growth momentum.

Major Rooftop Solar Deal for SolarEdge in the U.S. Commercial Market

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Israeli solar technology company SolarEdge announced a strategic collaboration with U.S.-based Solar Landscape to deploy solar energy systems on hundreds of commercial and industrial rooftops throughout the United States. Under the agreement, SolarEdge will supply inverters and power optimizers—manufactured at its U.S. facility—for more than 500 projects scheduled for construction across several states during 2025–2026. The announcement sent the company’s stock higher. Since the beginning of the year, SolarEdge shares listed on Nasdaq have gained more than 85%.

According to a report by The Wall Street Journal, the planned installation capacity of the collaboration is approximately 630 megawatts, potentially making it one of the largest commercial rooftop solar initiatives in the country. The report also noted that currently, only around 5% of U.S. commercial rooftops are utilized for solar energy production, although full utilization could theoretically provide up to 16% of the nation’s residential electricity demand.

The project’s aggressive timeline appears directly tied to recent changes in the U.S. incentive landscape. A new tax law, recently passed under the leadership of Donald Trump, reduces the scope of federal incentives for renewable energy projects and tightens deadlines for claiming solar tax credits. According to the updated guidelines, projects must commence construction by July 2026 in order to qualify for the 30% tax credit. In this context, the SolarEdge–Solar Landscape partnership—planning hundreds of rooftop solar installations during 2025–2026—is well-timed to help both companies maximize financial benefits before the new restrictions take effect.

The U.S. commercial rooftop solar market has seen strong growth in recent years but still falls short of its full potential. Vast rooftop spaces on warehouses and industrial buildings remain underutilized, largely due to building owners’ concerns over structural impacts, high installation costs, and regulatory hurdles. Nevertheless, major corporations are leading a shift, with hundreds of megawatts already installed and ambitious goals for further expansion.

Solar Landscape, a leading player in the U.S. community solar sector, specializes in installing photovoltaic systems on commercial and industrial rooftops to supply electricity to local communities. The company currently operates projects across roughly 3.7 million square meters of leased or owned rooftops and partners with major real estate firms to generate renewable energy. To date, it has built hundreds of solar systems, with a goal to power tens of thousands of homes—while focusing on including underserved communities in its distribution and benefits model.

SolarEdge Closes the Energy Storage Division

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Photo above: SolarEdge’s “Sella 2” plant, a two gigawatt-hour (2GWh) battery cell manufacturing facility in Korea

SolarEdge Technologies announced today that as part of its focus on its core solar activities, it will cease all activities of its Energy Storage division. This decision will result in a workforce reduction of approximately 500 employees, most of whom are in South Korea. The expected quarterly operating expenses savings due to the closure are approximately $7.5 million with the full run rate expected to be achieved by the second half of 2025.

The Company intends to sell the assets related to the storage division activities including its manufacturing facilities for battery cells and packs. This does not impact the solar business sale of batteries for residential and C&I markets. Ronen Faier, Interim Chief Executive Officer of SolarEdge, said: “The decision to close our Energy Storage division represent continued execution of two of our main priorities: financial stability  and profitability; and focus on our core business lines of solar, PV-attached storage and energy management capabilities.”

The activity in Korea is based on Kokam, a local producer of Lithium-ion battery cells, batteries and energy storage solutions, which was acquired by SolarEdge  in 2018 for approximately $105 millions. Following the acquisition, SolarEdge opened in May 2022 Kokam’s second plant, “Sella 2”, a two gigawatt-hour (2GWh) battery cell manufacturing facility. The manufactured battery cells for SolarEdge’s residential solar-attached batteries as well as battery cells for a variety of industries, including mobile, energy stationary storage solutions and UPS.

Ending all Non-solar activities

During 2023 , SolarEdge continued to ramp up the manufacturing capabilities in Sella 2, and planned to gradually increase its manufacturing capabilities during 2024. The current descision marks an historic moment for the company: the completion of the exit from all the non-solar activities, such as UPS, e-Mobility and battery cell productions. The non-solar activity never took off and had remained bewlow 10% of total revenues.

At its peak, in 2023, it had reached $200 million sales, when total sales surepassed $3 billions. During the first nine months of 2023, Kokam’s sales totaled $51.9 million, out of  SolarEdge’s $730.7 millions sales. The market reacted to the news by sending SolarEdge stock price on NASDAQ 8.5% up, giving the company a market cap of approximately $861 millions.