Guinness Sustainable Energy Fund on Enphase Energy
Thesis
The fund owns Enphase Energy for exposure to the electronics required in distributed solar systems. Enphase manufactures inverters that convert DC electricity from solar panels into usable AC power, making the product essential to solar installations. The managers expect solar capacity to keep expanding because of attractive economics and rising electricity demand, supporting long-term demand for these components.
“Enphase manufactures the inverters required to convert DC solar power into consumable AC electricity”
Key risks
- Residential solar demand can be sensitive to interest rates and policy incentives
- Solar supply-chain competition can pressure pricing