Restructuring: Solaredge Announces Closure of Large-Scale Energy Storage Business - Share Price up

Milpitas, USA - The Israeli solar group Solaredge has announced that the company will discontinue all activities in its utility-scale energy storage division as part of its focus on its core solar activities. The share price has risen today.

According to Solaredge, the decision to close the storage segment will result in a workforce reduction of approximately 500 employees, most of whom are based in South Korea. The expected quarterly operating cost savings from the closure are approximately USD 7.5 million according to Solaredge, with full savings expected to be realized in the second half of 2025.

Solaredge intends to sell the assets related to the storage division's operations, including the battery cell and pack manufacturing facilities.

The company emphasizes that the announced measure will focus exclusively on the production of lithium-ion battery cells for utility-scale BESS solutions and will have no impact on the range of solar power storage solutions for residential and commercial customers. This means that Solaredge will continue to develop, produce and sell all storage solutions for residential and commercial users. Not only will the solar energy storage business continue, but local manufacturing capacity in the United States will be expanded, adding significant production capacity, the company said in a supplementary statement to IWR-Online.

“The decision to close our Energy Storage division was the result of a thoughtful analysis of our portfolio of businesses and product lines, industry trends, and the competitive environment. The measures also represent continued execution of two of our main priorities: financial stability through cost reduction, return to cash flow positivity and profitability; and focus on our core business lines of solar, PV-attached storage and energy management capabilities. I wish to thank our Energy Storage division employees for all of their efforts in building this business,” commented Interim CEO Ronen Faier.

Solaredge's share price has risen today. The RENIXX Group's share price is currently up 2.9% at EUR 13.3. Compared to the price at the turn of the year, the share is thus down around 85 percent and is currently in last place in the RENIXX ranking.

Source: IWR Online, 27 Nov 2024