Microinverter and battery storage supplier Enphase Energy reported a revenue of $380.9 million in the third quarter (Q3) of 2024, a 31% drop from $551.08 million a year ago.

The company faced weakening demand in Europe, where revenue fell by 15%. Despite this, U.S. sales surged 43% quarter-over-quarter as inventory normalization boosted shipments.

Net income for the quarter also fell by 38% to $88.4 million from $141.85 million last year.

Enphase shipped 1,731,768 microinverters, amounting to approximately 730 MW DC of capacity, and 172.9 MWh of its flagship IQ® Batteries, reflecting a notable increase from the previous quarter.

While the U.S. market performed strongly, Enphase experienced a 15% decline in revenue from Europe during Q3 2024. This drop was attributed to a softening in demand across several European countries, where high energy prices and economic uncertainties may have impacted solar adoption rates.

Looking forward, Enphase is preparing to roll out its second-generation IQ® EV charger and 3-Phase IQ® Battery for the European market. In the U.S., the company will debut its fourth-generation energy system in 2025, featuring the IQ® Meter Collar and a 10-kWh IQ® Battery to reduce installation costs.

Enphase’s upcoming products are expected to address residential and commercial solar needs, further expanding its global footprint.

In Q3, Enphase also launched its IQ8™ Microinverters in various countries, including India, Australia, and parts of Europe. The IQ8HC™ Microinverters, built with higher domestic content, started shipping from U.S. manufacturing facilities, with commercial variants expected to follow in Q4.

Enphase Energy’s net income for the second quarter of 2024 dropped 71.4% to $58.8 million.

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.