Enphase Energy (NASDAQ:ENPH) stock represents a premier seller of microinverters for solar energy systems.
It’s a great time for Enphase to be in this niche business. That’s because recently-passed U.S. legislation includes solar tax credits. Besides, ENPH stock has room to move higher as Enphase Energy ambitiously pursues its strategy of value-added acquisitions.
People can spend their free time debating the merits of clean energy initiatives if they want to. Yet, they can’t deny that governments around the world are pouring money into carbon-neutral energy sources, including solar.
The U.S. government is no exception, and Enphase Energy stands to benefit from pro-solar legislation. In addition, Enphase is growing its operations rapidly through acquisitions which should impress prospective investors.
| ENPH | Enphase Energy | $313.52 |
What’s Happening with ENPH Stock?
As the old saying goes, you can’t keep a good stock down for long. ENPH stock continues to power higher even during a volatile year for the stock market, reaching $300 not too long ago.
It’s hard to imagine that this upward path will cease anytime soon. After all, when the government is effectively backing a company you’re invested in, it’s smart to stay in the trade.
As you may recall, President Joseph Biden signed the Inflation Reduction Act into law on Aug. 16. This landmark legislation represents America’s biggest investment in fighting climate change.
The financial press focused mostly on the law’s financial support of electric vehicle (EV) purchases. Yet, let’s not forget that the Inflation Reduction Act incentivizes the purchase of rooftop solar panels, as well.
U.S. solar panel installations that are/were completed between Jan. 1 of this year and the end of 2032 reportedly qualify for a 30% tax credit. Meanwhile, installations completed in 2033 and 2034 will qualify for tax credits of 26% and 22%, respectively.
Major Deals Add Conviction to ENPH Stock
Enphase Energy is only getting bigger and better, it seems. The company is wheeling and dealing, and prospective investors should be aware of what Enphase has been up to lately:
- Florida-based residential solar service provider Meraki Solar agreed to expand the adoption of Enphase IQ Microinverters.
- Enphase announced its acquisition of German Internet of Things (IoT) software solutions provider GreenCom.
- Enphase Energy and Home Connect plan to introduce an integrated clean home energy and smart appliances platform.
- The company also disclosed a partnership with BayWa to distribute the company’s microinverters and IQ batteries in Germany and Benelux.
All of these deals should enhance Enphase’s value proposition to investors. However, the arrangement with BayWa is particularly interesting as it represents a quantum leap forward for Enphase Energy’s push into Europe.
What You Can Do Now
Why should you consider investing in Enphase Energy? Maybe because the U.S. government is incentivizing solar adoption? Or because Enphase is pursuing an exciting strategy of deals with top-tier businesses?
The answer is, all of the above. As ENPH continues to head higher, don’t assume that the share-price move is running out of steam as Enphase Energy’s solar-fueled momentum is only getting started.
On the date of publication, Louis Navellier had a long position in ENPH. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.