SolarEdge Technologies (SEDG) TD Cowen's 54th Annual Technology, Media & Telecom Conference summary

Data center and solid-state transformer (SST) strategy

• Revived SST project to target AI data centers, leveraging prior utility-scale R&D and expertise in DC technology.

• Partnership with Infineon continues, integrating silicon carbide into new SST products.

• Targeting pilot SST installations in 2025, with commercial scaling aligned to Nvidia's 2028 GPU roadmap and 800V DC transition.

• SST design enables one-step conversion from 34.5kV AC to 800V DC, achieving 99% efficiency and simplifying infrastructure.

• Focus on reliability, scalability, and ecosystem partnerships to meet hyperscaler requirements and ensure market adoption.

Solar and storage market trends

• Global demand for solar remains strong, driven by rising electricity prices and the need for storage-enabled solutions.

• Europe shows above-seasonal uptick in both residential and C&I solar demand, while U.S. C&I is robust but residential lags due to policy uncertainty.

• Safe harbor deals provide improved visibility into future revenue and production planning, especially in C&I.

• Transition to LFP batteries across the portfolio is underway, improving cost structure and installation efficiency.

Product innovation and financial impact

• Nexus platform launched in Europe and piloted in the U.S., offering AI-driven optimization, installer-friendly design, and single SKU transition.

• All Nexus inverters and optimizers to be U.S.-made, qualifying for 45X credits and lowering net costs.

• Full transition to Nexus expected by end of Q1 2025, with anticipated margin improvement and pricing power.

• Operational efficiency initiatives continue, with SKU reduction and cost controls supporting further margin gains.