Enphase Energy (NASDAQ:ENPH) stock is up 4% as of 2:30 p.m. EST after the solar microinverter maker announced the launch of its Enphase Installer Network in Australia this morning.
The EIN, says Enphase, recognizes "a network of trusted installers that deliver exceptional homeowner experiences using Enphase products and is designed to help Enphase installers grow their business with a range of innovative digital tools and exclusive benefits."
So in essence, the EIN is a sort of industry certification system, or seal of approval contractors can use to show potential customers their work is Enphase-approved. The longer a contractor has had a relationship with Enphase, and the better its reputation for quality work, the higher its rank will move within the EIN system, from silver-tier installer to gold to platinum.
In this regard, the system's objective seems to be to get more work for contractors who utilize Enphase parts (as opposed to inverters from other suppliers, thus boosting Enphase's sales); to encourage those contractors to patronize Enphase over other suppliers, so as to elevate their status within EIN; and to create a sort of aura of desirability around Enphase's products.
As news items go, I'm not convinced this one is worth the $660 million in extra market capitalization it appears to have added to Enphase stock this afternoon. I'm certain it doesn't change the valuation proposition on this 106-times-earnings stock, which still seems quite expensive to me.
But it is still an incrementally positive development, and good news of some sort for investors today.