The case for Enphase Energy — a solar company once on the brink of bankruptcy that’s now booming

Solaray Director Jonathan Fisk moves a solar panel at the solar power installation company’s Sydney facility

Jason Reed | Reuters

In January, Enphase Energy joined the S&P 500 — the first pure-play solar company to be added to the benchmark index. That would be achievement enough for any corporation. But the vote of confidence is even more surprising given that, just a few years ago, Enphase was on the brink of bankruptcy.

Enphase is best known for pioneering a specialized form of inverter — often referred to as the brains of a solar system – known as a microinverter, which converts direct current electricity generated by solar modules to standard AC electricity. Since 2016, as solar power has taken off, the company has staged an epic turnaround. Enphase brought in new management and focused on cutting costs while creating a top-of-the-line product. Following the restructuring, the company has steadily clawed back market share from rival SolarEdge, and the two companies now essentially hold a duopoly on the U.S. residential solar inverter market.

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