Microinverter and battery storage supplier Enphase Energy’s net income for the second quarter (Q2) of 2024 dropped 71.4% to $58.8 million as the Nasdaq-listed company continued to face demand headwinds. This is the fourth consecutive quarter in which Enphase reported year-on-year lower profits.

Revenue for the quarter also fell sharply by 57.3% to $303.5 million, compared to $711.1 million last year.

However, the company’s battery storage business grew by 60% sequentially. Enphase shipped 120.2 MWh of IQ Batteries in Q2 from 75.5 MWh in the previous quarter as higher battery attach rates in California, attributed to the increasing adoption of NEM 3.0, drove demand.

“Our battery business is doing very well with growth from quarter to quarter… Our Q3 bookings are the healthiest that they have been in a year,” said CEO Badri Kothandaraman during an investor call, adding that cell pack prices are going down.

The company also benefits from the Inflation Reduction Act (IRA), which qualifies domestically manufactured inverters for production tax credits. Of the total 1.4 million microinverters shipped in the quarter, Enphase shipped about 574,000 microinverters from its U.S. contract manufacturing facilities.

“We expect to ship approximately 1.1 million microinverters from our U.S. facilities in Q3,” said Kothandaraman, adding that the company’s revenue in India has doubled from a year ago.

First Half 2024

Looking at the first half of 2024, the trend of decline is similar to the same period in 2023.

Net income for 1H 2024 fell 73.2% to $106.8 million from $397.9 million in 1H 2023, while revenue decreased 60.6% to $566.8 million from $1.44 billion.

The company’s net income in the previous quarter fell 75% as its primary market U.S. saw a decline in demand.

Last year, Mercom reported that inverter costs increased by over 10% as manufacturers struggled to meet demand due to the limited availability of semiconductors, crucial components for inverter manufacturing.