SolarEdge

SolarEdge’s alignment with long-term sustainability trends is why we believe that our investors can profit from being shareholders in this company, while contributing to a positive impact for the environment

About SolarEdge

Industry: Solar Energy
Headquarters:  Herzliya, Israel

Solar farm at sunset

Through their products and services, and the way they do business, companies can pursue goals beyond profit. Through your investments, you too can aim for returns beyond financial ones.

Investors at M&G believe the emergence of solar power is an area that presents rich opportunities to target positive outcomes for the environment, alongside profit.

Solar electricity generation is growing rapidly around the world, not least in China, and is forecast to become the largest source of low-carbon capacity by 2040, by which time renewables are expected to account for some 40% of the global total.

This structural growth creates long-term opportunities for companies that can successfully harness it. We believe SolarEdge is an example of one such company, and M&G invests in its shares.

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested’ after the third paragraph

A pioneer in smart energy solutions

SolarEdge is a leading global manufacturer of systems that improve the efficiency of renewable electricity generation.

Established in 2006, it developed a pioneering inverter that maximises the amount of power that can be generated from solar panels. The SolarEdge power optimiser, a related product, helps increase each module’s output by monitoring its real-time performance.

The company also offers grid services, using technology to help facilitate the effective decentralisation of electricity generation.

Time in the shade

Harnessing the power of sunlight offers the promise of almost limitless energy, in principle. Yet in practice the limitations of solar generation have often frustrated ambitions.

While solar panels may today dot the landscape, covering countless fields and roofs, it is worth considering that more than six decades have passed since the first solar cell was invented.

A couple of major challenges have historically curtailed the role of solar in our energy mix – the high financial cost of generating solar electricity versus other fuels, and the fact that electricity is consumed whether the sun is out or not.

SolarEdge in numbers

  • 25 years – Operational life warranty for its power optimisers
  • >7.5 GW – electricity generation capacity of optimised inverter systems shipped (roughly enough to power an economy the size of Ecuador’s)
  • 1,200,000 – number of inverters shipped worldwide to September 2018
  • 27,900,000 – number of power optimisers shipped worldwide to September 2018

Here comes the sun

The technologies developed by SolarEdge are helping to overcome these challenges.

By enhancing output from solar panel systems, its products lower the cost of generating each unit of electricity. Building on the advancing efficiency of the panels themselves, this makes solar power more competitive compared to the likes of burning coal and gas.

Its smart grid services meanwhile enable disparate energy resources, including solar generation and battery storage, to be pooled and managed remotely as one system. As well as helping to meet short-term demand and maintain supply to the grid, it is driving more efficient electricity production – and, by extension, consumption.

Investing in a brighter future

There need not be a trade-off between doing good and doing well. Investors at M&G believe it can be pragmatic to invest in companies that can demonstrate positive impact.

SolarEdge has a track record of creating energy efficient products and solutions that have a tangible positive impact against United Nations Sustainable Development Goal 7 – “ensuring access to affordable, reliable, sustainable and modern energy for all”.

Where businesses successfully align with long-term sustainability trends, their futures look bright. We believe that M&G’s investors can profit from being shareholders in this company, while contributing to a positive impact for the environment.

 

We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser.

This information is not an offer or solicitation of an offer for the purchase of shares in any of M&G’s funds.

Before subscribing you should read the Prospectus and the Key Investor Information Document.  This financial promotion is issued by M&G International Investments S.A., Registered Office: 16, Boulevard Royal, L-2449, Luxembourg and M&G Securities Limited (registered in England, No. 90776), authorised and regulated by the Financial Conduct Authority in the UK. Registered office: Laurence Pountney Hill, London EC4R 0HH. The Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários, the “CMVM”) has received a passporting notification under Directive 2009/65/EC of the European Parliament and of the Council and the Commission Regulation (EU) 584/2010 enabling the fund to be distributed to the public in Portugal.

 

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