Following the passage of a new law, Enphase shares fell by 19.63%. Enphase is an American company specializing in microinverters and energy management systems for residential installations. Sunrun dropped by over 37% — one of the largest operators of photovoltaic systems under leasing and subscription models. Israeli inverter and energy optimization market leader SolarEdge declined by 24.67%. Other major losses also affected SunPower, Maxeon, and Canadian Solar. This is not a market correction but a fundamental repricing reflecting changed market conditions.
However, the crisis in the U.S. solar sector did not begin recently. It has been unfolding over several years. Looking at total returns: in 2023, Enphase lost 50%, SolarEdge 66.9%, and Maxeon 55.3%. The negative trend continued in 2024 — Maxeon dropped 98.9%, SolarEdge 85.5%, Sunnova 77.5%. In 2025, the downward trend persists: since the beginning of the year Sunnova has fallen by 95%, Maxeon by 65.7%, and Enphase by 44.7%. This multi-year price adjustment has fundamentally altered how the sector is valued.
The EV/Sales ratio, a simple metric showing how much investors pay per dollar of company revenue, has collapsed. Lower values indicate waning confidence in a company’s ability to generate profit from sales. For the solar industry, EV/Sales dropped from 5–6x to crisis levels: today Maxeon trades at 0.3x, Complete Solaria at 0.7x, and SolarEdge at 0.8x. Investor trust in the sector has eroded as growing risks outweigh growth opportunities.
Technical indicators are equally concerning. The Relative Strength Index (RSI) has fallen to 32 for Enphase, 38 for Sunrun, and 44 for SolarEdge. These stocks trade over 40% below their 200-day moving averages. Price declines from all-time highs are dramatic: Maxeon down 99.5%, Sunnova 99.75%, SolarEdge 96.2%, Enphase 88.8%. This signals a loss of momentum for the sector.
Quarterly results confirm the weakness. Enphase forecasts a 6–8 percentage point drop in gross margins starting Q3 due to new tariffs. SolarEdge expects a similar impact in the second half of the year. Sunrun openly reports cost increases of $1,000 to $3,000 per installation, raising total costs by 3–7%. None of these companies have yet implemented pricing strategies that could fully offset the tariff effects.
The reality is that the entire sector is undergoing a transformation — moving from “growth” to “deep value.” This shift is not solely due to the reduction of subsidies and support, but because even those measures were insufficient to sustain fundamentals. Their reduction merely accelerates a process long underway.
Author: Paweł Majtkowski, Analyst at eToro Poland
Source: CEO.com.pl
