3 Questions for SolarEdge Technologies
One of the surprise winners in the solar industry right now is a company most customers never see. SolarEdge Technologies (NASDAQ: SEDG) began as a solar optimizer manufacturer and now makes inverters, monitoring, and other products to serve the residential and commercial solar markets. The company has a market cap of $1.1 billion, which is bigger than most of the world's largest solar module manufacturers and project developers.
What SolarEdge has been able to do is leverage its position as a key supplier to installers and offer them capabilities they can't perform themselves. A mom-and-pop residential installer isn't making any of the components it installs, but components like solar modules, racking, and wiring are often commodities in today's market, making them cheap and readily available. Power optimizers and inverters end up being the monitoring system, or the brains behind the solar system, something small installers need and few commodity partners offer. So, SolarEdge becomes a natural partner who can extract more value than other parts of the value chain. The question now is: Will SolarEdge Technologies's power position last?
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Source: Fool.com