2 weeks Ago By Bloomberg News
Enphase Energy Inc., a solar and storage provider, said it sees a 6%-to-8% hit to gross margins in the third quarter from steep US tariffs imposed by the Trump administration on battery imports from China. Author of the article: You can save this article by registering for free here .
Or sign-in if you have an account. (Bloomberg) — Enphase Energy Inc., a solar and storage provider, said it sees a 6%-to-8% hit to gross margins in the third quarter from steep US tariffs imposed by the Trump administration on battery imports from China.
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Create an account or sign in to continue with your reading experience. Sign In or Create an Account Ahead of that, the company expects a smaller impact of about 2% in the second quarter because of batteries imported before the higher duties were imposed, Chief Executive Officer Badri Kothandaraman said on a first-quarter earnings call. “We have to rewire our supply chain for batteries,” Kothandaraman said in an interview.
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We encountered an issue signing you up. Please try again Interested in more newsletters? Browse here. Enphase’s disclosure is one of the first for a US-based solar and battery company following President Donald Trump’s announcement of tariffs on China as part of an effort to rebalance trade with an economic rival.
Overall, tariffs on energy-storage batteries from China are set at 155.9%, according to BloombergNEF. Enphase shares fell as much as 11% post-market after forecasting second-quarter revenue of $340 million to $380 million, with a midpoint below the average analyst estimate.
The lower guidance comes as US residential solar companies are facing headwinds, including rising costs from tariffs, high interest rates and lower government incentives. New product offerings are expected to boost sales for the rest of the year in the US and Europe, Kothandaraman said. Enphase is working to identify sources of batteries from outside of China, in Southeast Asia and Eastern Europe, he said.
That would allow the company to completely offset the tariff impact by second quarter of 2026, he added. The tariffs would have a minimal impact on the company’s solar inverters, he said. (Updates with comment from CEO starting in third paragraph) Postmedia is committed to maintaining a lively but civil forum for discussion.
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