Shares of solar microinverter company Enphase Energy (NASDAQ:ENPH) jumped as much as 6.2% in trading Thursday after the company announced an expanded partnership with a customer. At 12:15 p.m. EST, shares had given back some gains but were still up 2.5% on the day.
Solar Optimum, a large installation partner, announced that it will begin offering Enphase storage systems with its solar products. This could greatly expand the revenue Enphase generates from each customer and could generate long-term value.
The product Enphase is selling now will be used for backup power, but over the long term the company could start aggregating assets and create virtual power plants. And getting assets into the market is the first step on that path.
This isn't a surprising agreement for Enphase, but it does show that it is moving more aggressively into energy storage this year. To live up to investors' expectations as a high-growth stock, the company will need to find ways to expand both the revenue it generates per customer and the number of customers it reaches. This is a step in that direction and is why it's getting some attention today.