(Bloomberg) -- Enphase Energy Inc. surged the most in three months after the solar-energy manufacturer beat forecast expectations and announced plans to expand in the US following the passage of the country’s landmark clean energy law.
The Fremont, California-based company said it would open four to six manufacturing lines in the US. It also forecast fourth-quarter revenue of $680 million to $720 million, above the average estimate of $664.3 million. Shares rose as much as 14%.
After years of depending on Chinese firms for much of its clean energy supply, the US may be on the verge of a cleantech-manufacturing boom. Congress this summer passed the Inflation Reduction Act, which includes generous incentives to support new solar and battery factories. Many manufacturers are eager to make supplies closer to their customers, in part to limit some of the constraints that have bogged shipments since the start of the pandemic.
“It helps us to service customers a little bit better,” Badri Kothandaraman, Enphase’s chief executive officer, said in an interview Tuesday. “Now, we don’t need to have shipments that are in the ocean for four weeks before they come here.”
Shortly after the climate bill passed, First Solar Inc. -- America’s biggest panel maker -- announced plans to invest $1.2 billion to expand its US manufacturing capacity.
Enphase, which makes components that convert solar electricity into usable energy, is working with three contract manufacturing partners and expects the new lines to open by the second half of 2023. Four lines equates to about three million microinverters a quarter.
The company is one of the first solar companies to report earnings each quarter and often provides early insight into the relative health of the sector. Investors will be watching to see if more renewable factories are announced in the coming weeks.
©2022 Bloomberg L.P.