SolarEdge Technologies,Inc.(SolarEdge,NASDAQ:SEDG),a global leader in smart energy technology,recently announced that after a careful analysis of its business,industry trends and competitive landscape,it has decided to discontinue all activities in its Energy Storage division and focus on its core solar,PV-attached storage and energy management capabilities.

The expected quarterly operating cost savings from the closure are approximately$7.5 million,with the full run rate expected to be achieved by the second half of 2025.SolarEdge plans to sell the assets associated with its storage business,including its battery cell and pack manufacturing facilities.This does not affect the solar business,which sells batteries to the residential and C&I markets.Meanwhile,the company will reduce its workforce by approximately 500 employees,most of whom are based in South Korea.

SolarEdge said the reduction in the energy storage division is due to a decline in demand for residential solar resulted from lower electricity prices in Europe.SolarEdge has struggled in recent quarters,reporting a GAAP net loss of$1.21 billion in the third quarter of 2024.

（Picture: Veer）