Enphase Energy, a supplier of microinverters and battery storage, experienced a 71.4 per cent drop in net income for the second quarter (Q2) of 2024, reaching $58.8 million, due to ongoing demand challenges. This marked the fourth consecutive quarter of year-on-year profit declines.

The company's revenue also saw a significant decrease of 57.3 per cent, falling to $303.5 million from $711.1 million in the same period last year.

Despite these declines, Enphase's battery storage business experienced a 60 per cent sequential growth. The company shipped 120.2 MWh of IQ Batteries in Q2, up from 75.5 MWh in the previous quarter. This growth was driven by higher battery attach rates in California, influenced by the increasing adoption of NEM 3.0.

CEO Badri Kothandaraman noted during an investor call that their battery business was performing well with quarter-to-quarter growth and that Q3 bookings were the healthiest they had been in a year. He mentioned that cell pack prices were decreasing.

Enphase also benefited from the Inflation Reduction Act (IRA), which provides production tax credits for domestically manufactured inverters. Of the 1.4 million microinverters shipped in the quarter, approximately 574,000 were from U.S. contract manufacturing facilities.

Kothandaraman projected that the company would ship around 1.1 million microinverters from US facilities in Q3 and highlighted that the company's revenue in India had doubled from the previous year.