Better Buy: SolarEdge vs. Enphase

The solar energy business has long been tumultuous, with commoditization, falling prices, and low margins more the norm than the exception.

However, one corner of that market has actually been quite profitable over the years: the inverter market, which is dominated by two companies, Enphase (NASDAQ: ENPH) and (NASDAQ: SEDG). An inverter is a device that converts the direct current (DC) electricity that is generated by photovoltaic solar panels into the alternating current (AC) electricity that we use to power our homes and businesses.

While there are other inverter companies out there, these two have carved out a nice duopoly as industry leaders, thanks to some sophisticated technology that boosts efficiency, safety, and offers ongoing services to homeowners and installers.

Continue reading

Source Fool.com