Enphase Energy reports 57% revenue drop in Q2 2024, but battery shipments surge amid market challenges.

Enphase Energy, a solar-and-storage company, reported a 57% drop in Q2 2024 revenue to $303.5 million for the second quarter of 2024, up from $263.3 million in Q1 2024, but this was down from $711.1 million for Q2 2023. The company’s battery business saw a surge in global shipments, with global shipments rising from 75.5 MWh to 120 MWh, with further growth expected in Q3. This growth was partially due to California’s shift to a net billing tariff that incentivizes battery attachments on residential solar systems. However, Enphase’s U.S. operations suffered due to high interest rates, high product inventories, and California’s new NEM 3.0 net-metering tariff reducing demand for residential solar-only systems. Despite the miss, investors cheered the company’s performance, sending the Nasdaq-listed stock up more than 10% on Wednesday. Enphase plans to begin manufacturing batteries in the United States in the US in Q4 2024, later than forecasted later than the expected forecasted, and expects a net IRA benefit of $18.4 million from the Inflation Reduction Act, which added 6.1% to its non-GAAP gross margins and a total net benefit of €30 million to $33 million.