Solar solutions company Enphase Energy (NASDAQ:ENPH) is up 7% so far today on a recent surge in demand. This morning, Enphase announced that a “growing number of Australian solar installers” are adding Enphase products to their offerings.
Enphase appears to be the welcome beneficiary of new Australian safety requirements levied against photovoltaic (PV) arrays. These new regulations went live in May 2022 and have immediately boosted Enphase’s presence in the country. The laws are aimed at helping solar installers meet compliance and promote “consumer and electrical contractor safety.”
These new regulations have yielded an immediate jump in Australian demand for Enphase. Some solar installers are now exclusively carrying the company’s products to minimize electrical risk and shield their businesses from future regulation.
John Inglis, founder of installer Positronic Solar, commented on his company’s recent transition to Enphase exclusivity.
“We are well known in the industry for testing solar system components to destruction before we include them in our designs, which is an important factor in our decision to drop DC string solar systems and exclusively offer Enphase technology […] Our extensive experience witnessing the advantages Enphase systems offer our customers makes its microinverters a fundamental part of our uncompromising commitment to solar quality and safety.”
Australia is not the only place Enphase is seeing an uptick in demand, however.
ENPH Stock Climbs on Rising Demand
Just last week, Enphase informed investors that the company has also seen a recent increase in adoption in Florida. As homeowners in the Sunshine State approach hurricane season, more are attempting to become energy independent.
Given its frequency of storms, this region of the United States has some of the strongest demand for solar — a bullish indicator for ENPH stock and its host of solar installations. Specifically, Florida customers have taken an apparent liking to Enphase’s IQ8 Microinverters.
Enphase has performed well this year, especially compared to the tumultuous performance of the greater market. ENPH stock is up more than 14% year-to-date (YTD) amid rising energy costs. Russia’s invasion of Ukraine has bumped the price of oil and gasoline to near-record highs. Accordingly, solar companies like Enphase have enjoyed a renewed interest in the industry as consumers push for energy independence.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
