Enphase Energy Sheds O&M Subsidiary Next Phase Solar

Posted by Joseph Bebon on December 07, 2016 No Comments
Categories : New & Noteworthy

Enphase Energy Inc., a California-based technology provider specializing in solar micro-inverters, has offloaded essentially all of the assets of its Next Phase Solar subsidiary. Enphase purchased Next Phase Solar, an operations and maintenance (O&M) provider, in 2015.

Last month, though, MaxGen Energy Services acquired the commercial services unit of Next Phase Solar, and now SunSystem Technology LLC (SST) has announced that it acquired Next Phase’s residential field service division. Terms of both deals were not disclosed. However, Christian Zdebel, an Enphase Energy spokesperson, tells Solar Industry, “With the exception of some cleanup items, the company does not have any more assets from Next Phase.”

According to the Zdebel, Enphase sold the rights to the Next Phase Solar brand with the commercial assets to MaxGen, and SST acquired the remaining residential field service assets. The sale of the Next Phase Solar subsidiary follows Enphase Energy’s announcement in September that it was streamlining its operations and focusing on core competencies in an effort to remain competitive amid market challenges.

“We do, however, retain many of the Enphase Energy Services assets that Enphase developed prior to the Next Phase acquisition, including key personnel, systems, data analytics, and customer relationships,” notes Zdebel. “Importantly, we have a number of strong contracts with installers that we will continue to service and grow through Enphase Energy Services. Under these contracts, Enphase typically handles the customer service, monitoring, and maintenance for a portfolio of Enphase systems.”

He continues, “The change is that field service will typically be performed by strategic partners like SST, rather than by Enphase employees.”

In November, MaxGen CEO Mark McLanahan said in a press release that the company was “very excited to welcome Next Phase Solar to our rapidly expanding company.” McLanaha noted, “This acquisition will add over 1,000 sites to our existing portfolio of 3,000 sites that we already manage nationally.”

In a new announcement, SST says that its acquisition of the field services division of Next Phase Solar will significantly expand SST’s U.S. residential solar O&M business. The two companies have also entered into a strategic partnership through which SST will serve as Enphase’s primary residential O&M service provider.

“We are very excited about this transaction with Enphase,” says Derek Chase, CEO of SST, in a press release. “This acquisition and partnership will enable both of our companies to drive down costs and maximize efficiencies that can only be realized through greater economies of scale.”

“Transitioning the residential field services that were part of our Next Phase business to SST leverages their core strengths and experiences to best service our residential customers and enhances our ability to focus on our core business priorities: launching the next generation of our industry-leading micro-inverters, the Enphase storage system, and our AC Modules,” says Paul Nahi, president and CEO of Enphase, in the release. “Enphase and SST share a common commitment to excellence in customer service. The quality and commitment to customer care we see in SST’s proven ability to bring greater scale to these services across the U.S. will benefit our customer base and the industry as a whole.”

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