SolarEdge Power Optimizer. Our DC power optimizer is a highly reliable and efficient
DC-to-DC converter which is connected by installers to each PV module or embedded
by PV module manufacturers into their modules as part of the manufacturing process.
Our power optimizer increases energy output from the PV module to which it is
connected by continuously tracking the MPP of each module and controlling its
working point. The power optimizer’s ability to track the MPP of each PV
module and its ability to increase or decrease its output voltage, enables the
inverter’s input voltage to remain fixed under a large variety of string
configurations. This feature enhances flexibility in PV system designs, enabling
use of different string lengths in a single PV system connected to the same inverter,
use of PV panels situated on multiple orientations connected to the same inverter
and using varied PV module types in the same string. In addition, our power optimizers
monitor the performance of each PV module and communicates this data to our inverter
using our proprietary power line communication. In turn, the inverter transmits
this information to our monitoring server. Each power optimizer is equipped with
our proprietary safety mechanism which automatically reduces the output voltage
of each power optimizer to 1V unless the power optimizer receives a fail-safe
signal from a functioning inverter. As a result, if the inverter is shut down
(e.g., for system maintenance, due to malfunction, in the event of a fire or otherwise),
the DC voltage throughout the system is reduced to a safe level.
Our power optimizers are designed to withstand high temperatures and harsh environmental
conditions, and contain multiple bypass features that localize failures and enable
continued system operation in the vast majority of cases of power optimizer failure.
Our power optimizers are compatible with the vast majority of modules on the market
today and carry a 25-year product warranty. Our power optimizers are designed
to be used with our inverters as well as third party inverters to provide power
optimization. Monitoring and safety features can also be achieved with third party
inverters by adding supplemental communications hardware. During fiscal 2015,
2016, the six months ended December 31, 2016, and the year ended December 31,
2017, revenues derived from the sale of power optimizers represented 48.8%, 50.0%,
48.0%, and 47.3% of total revenues, respectively.
SolarEdge Inverter. Our DC-to-AC inverters contain sophisticated digital control
technology with efficient power conversion architecture resulting in superior
solar power harvesting and high reliability and are designed to work exclusively
with our DC power optimizers. A proprietary power line communication receiver
is integrated into each inverter, receiving data from our power optimizers, storing
this data and transmitting it to our monitoring server when an internet connection
exists. Since each string which is equipped with our power optimizers provides
fixed input voltage to our inverter, the inverter is able to operate at its highest
efficiency at all times and therefore is more cost-efficient, energy efficient
and reliable. Like our power optimizers, our inverters are designed to withstand
harsh environmental conditions. Since the power rating of an inverter determines
how many PV modules it can serve, larger installations require inverters with
higher power ratings. We currently offer our second generation of inverters which
come in two models: a one-phase inverter designed to address the residential market
(1 kilowatt (“kW”) to 11.4 kW) which includes our HD-Wave technology
and our newly introduced inverter-integrated electric vehicle (EV) charger and
a three-phase inverter designed to address the residential market in certain European
countries and the commercial market (4 kW to 100 kW). In June 2017, we introduced
an extended commercial solution that consists of various inverters, sized 55kW,
82.5kW, and 100kW. These inverters are designed for commercial installations,
reduce the number of required inverters and increase the system return on investment.
The vast majority of our inverters are sold with a 12-year warranty that is extendable
to 20 or 25 years for an additional cost.
StorEdge® Solutions. Our StorEdge solution is a DC coupled solution that is
used to increase energy independence and maximize self-consumption for homeowners
by utilizing a battery which is sold separately by third party manufacturers,
to store and supply power as needed. The solution is based on a single inverter
for both solar PV and storage. Our StorEdge solution is designed to provide smart
energy functions such as maximizing self-consumption, Time-of-Use programming
for desired hours of the day, and home energy backup solutions. To optimize self-consumption,
the battery is charged and discharged to meet consumption needs and reduce the
amount of power purchased from the grid. With a backup solution, unused solar
PV power is stored in a battery and used during a power outage or when solar PV
production is insufficient. When there is a power outage, a combination of solar
PV power and battery is used to power important sources such as the refrigerator,
communication devices, lighting, and AC outlets. Our proprietary monitoring platform
provides visibility into battery status, solar PV production, and self-consumption,
while offering easy maintenance with remote access to inverter and battery software.
Existing SolarEdge systems can be upgraded to our StorEdge solution.
SolarEdge Monitoring Software. Our cloud-based monitoring platform collects
power, voltage, current and system data sent from our inverters and power optimizers
and allows users to view the data at the module level, string level, inverter
level and system level from any browser or from most smart phones and tablets.
The monitoring software continuously analyzes data and flags potential problems.
The monitoring software includes features which are used on a routine basis
by integrators, installers, maintenance staff, and system owners to improve
a solar PV system’s performance by maximizing solar power harvesting and
reducing O&M costs by increasing system up-time and detecting PV module
performance issues more effectively. Connection to the monitoring server is
completed during installation by the installer. The installer then receives
full access to system data through the monitoring software and can select the
amount of data to be shared with the system owner.
Product Roadmap
Our products reflect the innovation focus and capabilities of our technology
departments. Our product roadmap is divided into five categories: power optimizers,
inverters, monitoring services, energy storage, and smart energy management.
Power Optimizers. We currently sell our third generation power optimizer which
was designed for fully automated assembly and which is based on our third generation
ASIC. A key element of our reliability strategy, and a significant differentiator
relative to our competitors, is our use of proprietary ASICs to control, among
other things, our power optimizer’s power conversion, safety features,
and PV module monitoring. Instead of using large numbers of discrete components,
our power optimizer uses a single proprietary ASIC, thus reducing the total
number of components in an electrical circuit and thereby improving reliability.
In June 2017, we unveiled our fourth generation optimizer which uses fourth
generation ASIC and incorporates a new safety mechanism for PV systems. In addition,
we are also continuing to develop the necessary subsystems for the fifth generation
ASIC which will be used in our fifth generation power optimizer. Each new ASIC
generation reduces the number of components required and meaningfully improved
the efficiency of the power optimizer. The efficiency improvement reduces the
energy losses which in turn reduces the amount of heat dissipation. This enables
design of a more cost-effective and usually smaller enclosure and also keeps
the electronics cooler, thereby improving the power optimizer’s reliability.
Inverters. Our inverter roadmap is intended to serve three purposes: (i) expand
addressable market by developing new and larger inverters designed specifically
for larger commercial installations and utility-scale projects; (ii) improve
the electronics to increase the total power throughput without changing the
existing enclosure, thereby reducing the actual cost per watt and increasing
economies of scale and (iii) improve ease of installation by integrating additional
functionality required in certain installations in order to reduce costs of
additional hardware and subcontractors’ labor costs. As part of our inverter
roadmap, we plan to apply our HD-Wave technology to three-phase inverters and
we are in the development process for doing so.
Monitoring Services. Our cloud-based monitoring platform is continuously growing
by the amount of data aggregated. We are continuously developing tools to accommodate
our growth and further enhance our service offering. Specifically, we plan to
increase data compression in order to enable support for a rapidly increasing
number of field systems while using low-cost equipment. In addition, we plan
to improve our reporting systems and enable users to obtain self-generated customized
reports. We also expect to expand algorithms that detect and pinpoint problems
that can affect power production in field systems. We further plan to add more
capabilities through our public application program interface to allow users
to build and integrate our system into their own systems and to allow users
to build and share useful applications based on monitoring data gathered by
our software.
Energy Storage and Shifting. SolarEdge is working to continue to expand its
third-party battery compatibility for the residential market. For the commercial
market, we plan to expand our StorEdge product offering to the commercial and
industrial sector.
Smart Energy Management. There are currently two separate energy technology
industries that exist today, solar energy production and building automation
technology. We believe that inverters will be taking on an expanded role in
energy management and automation, and in conjunction with this assumption we
are developing building automation products that can combine both of these industries.
This line of products, when used with the SolarEdge solution, will be designed
to allow system owners to increase self-consumption by shifting energy usage
to match peak solar PV production as well as offer a convenient, wireless control
option over various building and home devices. An example of this solution,
would be using excess solar PV energy to heat water or the ability to remotely
turn on or off certain power sources such as lighting or electrical appliances.
The introduction of these products is dependent upon certification and region
specific needs and as such, cannot yet be specified.
New Products or Product Categories. We are evaluating opportunities to expand
our product offerings and services to our customers. We may from time to time
develop new products or services that are a natural extension of our existing
business, or may engage in acquisitions of businesses or product lines with
the potential to strengthen our market position, enable us to enter attractive
markets, expand our technological capabilities, or provide synergy opportunities.