Enphase Energy Partners Waaree, To Aid India's Solar Goal

Enphase Energy, Inc. (NASDAQ:ENPH) announced that it has entered into an agreement with Waaree Energies Limited (Waaree), to provide solar microinvertors. Microinvertors are attached with the solar modules to convert direct solar current produced from the modules to alternating current. Alternating current produced from these microinvestors are combined to feed the electric grid.

Waaree produces high quality monocrystalline solar PV modules from its 500 megawatt (MW) solar facility in Gujrat. Waaree and other local producers, along with the foreign solar module producers, are working toward fulfillment of India’s ambitious solar goal.

India’s Solar Energy Goal

India is developing at a very fast pace and this is resulting in high demand of energy. Earlier, the country used to produce maximum amount of energy from fossil fuels. However, its new administration is focusing on producing more power from renewable sources and lower pollution level.

At present, India is striving to enhance its solar energy capacity to 100 Gigawatt (GW) by 2022, which will include 60 GW from grid-connected solar projects and 40 GW from rooftop solar. It is expected that around 1.1 GW of rooftop solar capacity will be added in 2017, up 75% from 2016.

So, the solar ambition of India will offer ample opportunity to the solar firms across globe. U.S.-based First Solar, Inc. (NASDAQ:FSLR) and SunEdison Inc. have ample businesses in India and together with local firms, are investing considerably in the country. Chinese stocks like ReneSola Ltd. (NYSE:SOL) are also financing solar projects in India.

Global Solar Outlook

From a recent release from U.S. Energy Information Administration, world energy consumption will increase by 28% between 2015 and 2040. Renewable energy will be among the largest contributors with its share touching 31% in 2040 same as coal’s share.

Among the renewable sources, wind and solar energy are expected to be the largest contributors, as the technology to produce energy will become cheaper.

So, the companies dealing with solar energy are expected to gain from robust growth in the renewable energy space.

Price Movement

Enphase Energy’s stock has gained 49.5% year to date, outperforming 36.9% rally of the industry it belongs to.

Zacks Rank & Stock to Consider

Enphase Energy currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same space is JA Solar Holdings Co Ltd. (NASDAQ:JASO) sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

JA Solar Holdings pulled off a positive earnings surprise of 716.7% in the last four quarters. Its 2017 Zacks Consensus Estimate moved up 6000% to 61 cents, in the last 60 days.

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