SolarEdge Closes Utility-Scale Energy Storage Division

SolarEdge is closing its utility-scale energy storage division, and selling related assets to focus on core solar operations, including PV-attached storage and energy management for residential and C&I segments.

November 29, 2024. By Mrinmoy Dey

SolarEdge Technologies, Inc. has announced that it will cease all activities of its energy storage division. This decision will result in a workforce reduction of approximately 500 employees, most of whom are in South Korea. The move is aimed at reducing costs and focusing on its core solar activities.

The expected quarterly operating expenses savings due to the closure are approximately USD 7.5 million with the full run rate expected to be achieved by the second half of 2025, the company said in a statement.

The company intends to sell the assets related to the storage division activities including its manufacturing facilities for battery cells and packs.

Commenting on the development, Ronen Faier, Interim Chief Executive Officer of SolarEdge, said, “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.”

He further clarified that this move does not impact the solar business, or the sale of batteries for residential and C&I markets. The move is focused solely on the manufacturing of lithium-ion battery cells for BESS solutions in the utility segment. “We will continue to focus on our core business lines of solar, PV-attached storage and energy management capabilities,” he said.

Tags:

Energy Storage

SolarEdge

Energy storage solutions

Utility-scale energy storage

Battery Energy Storage Systems

C and I segment

Solar storage solutions