Enphase offloads residential O&M arm to SunSystem Technology

Enphase Energy, the U.S.-headquartered producer of microinverters and home battery and energy management solutions, has offloaded its operations and maintenance (O&M) division Next Phase Solar to SunSystem Technology (SST), a U.S. independent solar services provider, for an undisclosed fee.

The sale of an important facet of Enphase Energy’s global operations may raise eyebrows within the industry given the company’s recent financial difficulties that saw it trim its workforce by around 11% in the Fall.

According to a press release issued by SST, the transaction will enable both firms to focus on their core strengths, with Enphase eager to grow into new markets with its AC Battery and Home Energy Solution. O&M was always likely to be a key tenet of that expansion, but Enphase evidently believes that the dedicated approach offered by SST is a better fit for its customers and business model.

Initially, SST will concentrate its resources on serving Enphase’s U.S. customers, and by assimilating this portfolio of consumers on to its books, SST has in one fell swoop become the largest residential solar O&M service provider in the U.S.

“Our companies share a common culture of quality that includes maintaining leading-edge knowledge through ongoing training for the technology driving today’s residential systems,” said SST CEO Derek Chase. “This acquisition and partnership will enable both of our companies to drive down costs and maximize efficiencies that can only be realized through greater economies of scale.”

Enphase president and CEO Paul Nahi added that transition the residential field services division of the company was always part of its strategy, with SST perfectly placed to leverage its core strengths to best service Enphase customers. This will free up Enphase to focus on its core business priorities, the CEO said, which includes the launch of next-generation microinverters, storage systems and AC modules.

In the third quarter of this year, Enphase posted a net loss of $18.8 million, with GAAP operating losses posted at $17.7 million. In September the company announced cost-cutting measures aimed at lowering its financial burden by around $20 million. “We believe these restructuring actions will better align Enphase’s resources with our long-term competitive growth strategies and market opportunities,” said Nahi at the time.