What happened 

Shares of Enphase Energy (NASDAQ:ENPH) jumped 26.9% in July, according to data from S&P Global Market Intelligence, after announcing some key business developments. In addition, early in August the company reported second-quarter 2020 earnings. 

So what 

The biggest announcement in July was SunPower's (NASDAQ:SPWR) spinoff of Maxeon Technologies, saying it will produce AC solar modules by integrating Enphase Energy's IQ microinverter at the factory level. That will lower costs for AC solar panels and should reduce installation costs in the field as well. For Enphase, being integrated at the factory floor is a big win, given the high quality of Maxeon's solar panels.

Roof with solar panels on a sunny day.

Image source: Getty Images.

Enphase also announced that it's shipping the Enphase Encharge energy storage system. This is a product line expansion for Enphase and could give the company a foothold in the valuable energy storage market.

In early August, the company announced second-quarter earnings, which showed revenue of $125.5 million and a strong gross margin of 38.5%. Revenue was down slightly from $134.1 million a year ago, which is understandable given the impact of COVID-19 on residential solar. 

Now what 

Enphase Energy is starting to see solid momentum in the market and operationally, which is why shares keep pushing higher. The integration with Maxeon's products is a critical step forward, but the fact that it's leading to solid gross margin is just as important. As long as there's momentum for the solar industry and Enphase specifically, this is a renewable energy stock that could keep moving higher.