In focus: SolarEdge

We believe SolarEdge, a holding in our Positive Impact strategy, has a fundamental role to play in the clean energy transition. Founded in 2006, the company has helped to transform the solar power terrain.

A clean solution

SolarEdge is a leading supplier of solar inverters globally and serves a broad gamut of market segments, including the residential, commercial, electric vehicle charging and home energy management sectors. Its technology is regarded as cutting edge: one of the company’s first innovations was a DC optimised inverter, revolutionising the way in which solar power is harvested and managed in photovoltaic systems.

A growing global population is set to lead to a 50% increase in electricity consumption by 2050 (using 2020 as the base year). Clean energy is required to meet this high level of demand, and solar power could offer a viable solution. Indeed, by 2050, solar power is expected to represent 32% of global installed electricity capacity (from 11% in 2019) and more than 30% of renewable energy. As solar generation systems cannot operate without inverters, SolarEdge has a crucial role to play in the shift towards clean energy. The company’s inverters also enable improved energy efficiency, which should further reduce the need for fossil fuels.

SolarEdge’s inverters have an additional benefit: they help protect the safety of installers, maintenance workers and firefighters. Unlike typical inverters, the DC voltage turns off when the inverter is disconnected.

Progress so far

By 2022, 2.78 million homes had been equipped with SolarEdge photovoltaic systems, while 31 million tonnes of greenhouse gas emissions are avoided annually through use of its systems. The company has a number of goals in place, some of which have been met ahead of time. For example, the business aimed for 2.5 million homes to be equipped with a SolarEdge photovoltaic system by 2025, but exceeded this target ahead of schedule (in 2022). It also has a 2025 goal to introduce new applications in the home smart energy management and electric mobility spheres. It has already greatly expanded its residential offering.

SolarEdge’s broader sustainability strategy has three pillars, ‘powering clean energy, powering people and powering business’. These broad goals reflect the company’s desire to be sustainable in all facets of its operations. For example, more than 150 women hold management roles at SolarEdge, while 88% of the waste the business generates is either recycled or converted into energy.

Source: SolarEdge, ‘Sustainability Report 2022’.

Impact area: Climate action
Primary SDG: SDG 7: Affordable and clean energy
KPI: # CO₂ emissions avoided
KPI measurement: 31 million tonnes