MILPITAS, Calif. - SolarEdge Technologies, Inc. (NASDAQ:SEDG) and Enstall, along with CPA firm Novogradac & Company LLP and Crux, a capital markets technology company, have introduced a new solution aimed at assisting developers and business owners with the IRS Domestic Content bonus credit compliance and tax credit monetization. This initiative is set to streamline the process for those working on Multi Dwelling Units and commercial and industrial projects.
The collaboration involves an Agreed Upon Procedure (AUP) Report by Novogradac & Company LLP, which will address the Domestic Content eligibility of SolarEdge and Enstall products. This step is expected to simplify due diligence for potential buyers of Investment Tax Credits (ITC). Crux will support the monetization of eligible ITCs through its tax credit marketplace platform, guiding owners and developers through the transaction process.
John Carroll, Vice President C&I Sales for SolarEdge, highlighted the company’s U.S.-manufactured inverter and optimizer solutions’ eligibility for domestic content, emphasizing the simplification of compliance and monetization processes for customers. Josh Morris, partner at Novogradac & Company LLP, pointed out the specific requirements introduced by IRS guidance, such as Notices 2024-41 and 2025-08, and the importance of the AUP in assisting stakeholders with financing decisions related to the ITC adder. Corey Geiger, COO for Enstall, expressed the goal of ensuring customers meet regulatory standards while maintaining the economic viability of their projects.
SolarEdge is known for its smart energy technology, particularly its intelligent inverter solution for photovoltaic systems, which seeks to maximize power generation and reduce energy costs. Enstall, with its family of brands, offers solar mounting solutions and digital services aimed at accelerating solar adoption. Despite challenging market conditions that have led to a 72% stock price decline over the past year, SolarEdge maintains its innovation focus. For deeper insights into SolarEdge’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to over 10 additional ProTips and detailed financial metrics.
This streamlined solution for meeting Domestic Content requirements and tax credit monetization is based on a press release statement and represents a collaborative effort to support the clean energy sector’s growth by simplifying regulatory compliance and financial optimization.
In other recent news, SolarEdge Technologies has been navigating significant developments. The company announced the appointment of Asaf Alperovitz as the new Chief Financial Officer, succeeding Ariel Porat. This management change follows the earlier appointment of Shuki Nir as CEO, marking a leadership transition aimed at enhancing financial strategy and organizational transformation. SolarEdge also reported that its solar inverter portfolio now complies with the Build America, Buy America (BABA) Act, allowing participation in U.S. federal infrastructure projects, a move praised for supporting American jobs and innovation.
Analysts have been adjusting their outlooks on SolarEdge. Jefferies raised its price target from $9 to $12, maintaining an Underperform rating, while Mizuho increased its target from $12 to $15, keeping a Neutral stance. Both firms cited factors such as margin expectations and potential benefits from safe harbor revenues. Despite these adjustments, analysts expressed concerns about competitive pressures, particularly from Chinese brands and Tesla.
Truist Securities maintained a Hold rating with an $18 price target amidst these changes, noting a cautious outlook due to low sentiment in the residential space. The firm highlighted the company’s focus on financial stability and inventory normalization. SolarEdge’s strategic initiatives, including the introduction of a new inverter product, are anticipated to impact its market positioning by late 2025.
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