SolarEdge Technologies Inc. / Enphase Energy: 2Q26 Preview: SST architectures in contrast

Research evidence excerpt

SolarEdge Technologies Inc. / Enphase Energy: 2Q26 Preview: SST architectures in contrast

Equity Research

9 July 2026

SolarEdge Technologies Inc. / Enphase Energy

2Q26 Preview: SST architectures in

contrast

ENPH’s IQ SST architecture could drive a cost advantage vs North America Clean Technology

competing SiC-based designs, while safe harbor activity POSITIVE Unchanged

remains a key near-term ENPH earnings driver; Demand in North America Clean Technology

Christine Cho, CFAEurope continues to evolve as increasing storage demand is a

bright spot. +1christine.cho@barclays.com212 526 8419

BCI, US

ENPH's SST architecture could be decisive cost advantage: ENPH’s IQ SST could emerge as Liam Duggan, CFA

one of the most cost-competitive solid-state transformer solutions under development, driven +1 212 526 5416

somewhat by its underlying GaN semiconductor but more by a differentiated system liam.duggan@barclays.com

architecture. While most competing SST designs (SEDG included) rely on high-voltage SiC BCI, US

devices that can require liquid cooling, heavy steel enclosures, and complex thermal

management, ENPH’s approach utilizes lower-voltage GaN modules connected in series to

achieve high-voltage output. This enables a lightweight, modular design that should be easier

and less expensive to manufacture, transport, and service. We think ENPH may ultimately be

capable of producing SSTs for less than $0.10/W before incentives, with the potential for even

lower net costs post tax credits. Beyond hardware economics, ENPH's IQ SST may also reduce or

eliminate the need for BBUs and CBUs through dynamic power routing and shared site-level

storage, lowering total system costs and enhancing ENPH’s positioning with more price-

sensitive early adopters.