SolarEdge Technologies Inc. SEDG recently launched its first commercial storage system, the CSS-OD battery, in Germany. This new battery, paired with SolarEdge’s solar inverter and power optimizer, offers an integrated solar and storage solution, which can be used both indoors and outdoors.
 
This launch should strengthen SEDG’s footprint in the rapidly expanding global battery energy storage systems (BESS) market.

More on SEDG’s CSS-OD Battery

The CSS-OD battery comes with a 102.4 kWh-rated cabinet and can be used in both commercial and industrial solar installations. SEDG’s German customers can use its SolarEdge One software to seamlessly optimize energy storage with the CSS-OD battery, which should lower their energy costs.

SEDG’s Prospects in the BESS Market

The BESS market has seen rapid growth in recent years, driven by rising investments in renewable energy infrastructure. As global electricity consumption continues to rise, BESS plays a crucial role in ensuring a reliable and continuous power supply. These systems store energy for use during peak demand periods and power outages, helping stabilize grids and supporting the growing shift toward renewable energy sources. With the increasing focus on clean energy, BESS is becoming an essential component in energy management worldwide.

This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 8.7% for the global BESS market during the 2024-2029 time period.

This market projection is likely to boost SEDG’s revenue generation prospect from the energy storage market with its advanced CSS-OD system. It has advanced safety features to ensure reliable and secure operations, which include fire detection, double fire suppression systems and AC-DC surge protection for enhanced safety.
 
In addition to the CSS-OD, SolarEdge offers highly efficient DC-coupled batteries like the SolarEdge Home Battery 400V and 48V. These batteries provide backup power during outages and work with single-phase and three-phase inverters, respectively, making them suitable for various setups.

Prospects for SEDG’s Peers

Other solar companies that are likely to enjoy the perks of the expanding BESS market have been discussed below.

Canadian Solar Inc. CSIQ: It is making significant progress in the BESS market with its e-STORAGE division. Notably, its SolBank 3.0 system provides more than five MWh of energy storage in a standard 20-foot container, which helps save space and reduce costs.
 
The company’s long-term (three to five years) earnings growth rate is 25%. The Zacks Consensus Estimate for CSIQ’s 2025 sales indicates year-over-year growth of 19.7%.

Sunrun Inc. RUN: Sunrun is one of the largest residential solar energy companies in the United States. Its Brightbox product is a solar battery storage service that manages home solar power, battery power and utility power to maximize savings, day and night, for its customers.

The consensus estimate for RUN’s 2025 sales indicates year-over-year growth of 15.4%. The consensus estimate for 2024 loss per share indicates improvement from the year-ago period.

Enphase Energy, Inc. ENPH: Enphase specializes in solar microinverters and energy management technology, including battery storage systems. Its IQ Battery 5P includes multiple bidirectional microinverters to switch energy from DC to AC and back again for safe, reliable operation.
 
The company’s long-term earnings growth rate is 3.6%. The Zacks Consensus Estimate for ENPH’s 2025 sales indicates year-over-year growth of 27.7%.

SEDG Stock’s Price Movement

Shares of SEDG have lost 4.2% in the past month against the industry’s 0.3% growth.

Image Source: Zacks Investment Research

SEDG’s Zacks Rank

SEDG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report

Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report

Sunrun Inc. (RUN) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research