The Fall of SolarEdge, the Photovoltaic Giant: Industry Warnings Behind the 13.1 Billion Loss

Recently, solar PV industry leader SolarEdge announced its 2024 financial results. The company reported revenue of $901.5 million (approximately RMB 6.53 billion), a nearly 70% year-over-year decline. Net profit attributable to shareholders showed a loss of $1.81 billion (approximately RMB 13.11 billion), swinging from profit to loss. In 2023, the company's net profit attributable to shareholders was $34.329 million.

source: SolarEdge

These results not only set a record loss since SolarEdge's founding but may also make it the "loss king" among solar PV companies in 2024.

The main reason for this dramatic performance decline is the "appalling" gross margin. In 2023, SolarEdge maintained a gross margin of 23.6%, but in 2024 it "plummeted" to -97.3%.

Despite these results, SolarEdge's Chief Executive Officer Shuki Nir stated that there are still "exciting opportunities" for SolarEdge. The fourth-quarter recovery represents a solid first step, and the company expects to achieve positive free cash flow in both the first quarter and full year of 2025.

This confidence stems from the narrowing year-over-year loss in the fourth quarter. In the third quarter of 2024, SolarEdge's net loss attributable to shareholders reached a staggering $1.21 billion (including $1.03 billion in asset write-downs and impairments), marking its highest quarterly loss since founding. By the fourth quarter, the net loss had narrowed to $287.4 million.

In response, SolarEdge appointed new CEO Shuki Nir in December 2024, who previously served as the company's Chief Marketing Officer. As a new executive, Shuki Nir understandably needs to maintain optimism about the company's future prospects and boost employee confidence.

More significantly, SolarEdge announced in early 2025 that it would lay off 400 employees globally, expecting to save $9-11 million in expenses, with most of these savings to be recognized in the first quarter of fiscal 2025.

This marks SolarEdge's fourth round of layoffs in the past two years. Previously, SolarEdge cut nearly 900 employees in January 2024, 400 in July, and 500 in November, totaling over 2,200 layoffs.

These substantial workforce reductions have helped SolarEdge lower capital expenditures and focus its business operations, potentially accelerating its return to profitability.

On the product front, SolarEdge launched the SE330K Terramax inverter and H1300 power optimizer in September 2024, designed for small to medium-scale utility solar installations. The product comes in two versions with AC outputs of 330kW and 297kW, and maximum DC power inputs of 660kW and 594kW respectively, representing 200% DC oversizing capability. It features 99% rated efficiency and includes an integrated night-time potential-induced degradation (PID) rectifier, supporting string lengths of up to 80 modules. Initial deliveries are expected by the end of the first quarter of 2025.

In 2025, SolarEdge will also introduce next-generation three-phase solar inverters and home batteries for the European residential market, as well as a new generation of home battery systems, further enhancing its competitiveness.