SolarEdge Technologies, as a part of its focus on its core solar activities, will cease all activities of its energy storage division.
The decision will result in a 500-employee reduction, most of whom are in South Korea. The expected quarterly operating expenses savings due to the closure are approximately $7.5 million, with the full run rate expected to be achieved by the second half of next year.
The company intends to sell the assets related to the storage division activities, including its manufacturing facilities for battery cells and packs. This decision is not expected to impact the solar business sale of batteries for residential and C&I markets.
“The decision to close our energy storage division was the result of a thoughtful analysis of our portfolio of businesses and product lines, industry trends and the competitive environment,” says Ronen Faier, interim CEO of SolarEdge.
“The measures also represent continued execution of two of our main priorities: financial stability through cost reduction, return to cash flow positivity and profitability; and focus on our core business lines of solar, PV-attached storage and energy management capabilities. I wish to thank our energy storage division employees for all of their efforts in building this business.”
