PVTIME – SolarEdge, a leader in inverter and energy management solutions based in Israel, shipped 1.2 GW of photovoltaic inverters in Q1 2025. This achievement marks the company’s first 1GW+ quarterly milestone since Q3 2023, reversing a downturn that saw shipments plummet to a five-year low of 850MW in Q3 2024.
Residential solar demand was the key driver of this growth. With shipments reaching 601 MW, this figure almost doubled that of Q1 2024 (302 MW) and outperformed that of Q4 2024 (329 MW). By contrast, shipments to the commercial and industrial sector declined year on year, falling from 640 MW in Q1 2024 to 586 MW in the latest quarter. Large-scale ground-mounted projects accounted for just 22 MW. Notably, residential inverters now represent 50% of total shipments, up sharply from the 32–37% share seen throughout 2024.
CEO Shuki Nir reported consecutive quarters of positive free cash flow and progress on strategic initiatives. Despite a volatile tariff and regulatory environment, SolarEdge remains committed to optimising business performance. Strong shipment numbers translated into a 12% sequential revenue increase and a 7.4% year-on-year rise, with Q1 2025 revenue reaching $219.5 million, up from $204.4 million in the previous year.
However, the company is facing headwinds from new tariffs. The Trump administration’s 145% tariff on Chinese solar products and 10% tariff on others poses challenges, even as SolarEdge increases US-based production. Looking ahead to Q2 2025, Nir anticipates a 2% reduction in gross margins, which is currently being offset by existing US-based, tariff-exempt inventory.
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