Enphase Energy (NASDAQ:ENPH) designs and sells microinverters and related products for solar photovoltaic (PV) systems. In its recent 10-K, the company reminded investors that it was the first to commercially ship microinverter systems in volume starting in 2008, but the company is facing new competition in the US (its largest market) from two larger companies who recently entered the microinverter space, namely SMA Solar Technology AG based in Germany and Power-One Inc. The latter was recently acquired by Switzerland-based ABB Ltd. (NYSE:ABB). I believe Enphase enjoys a strong competitive advantage in the US over these new entrants and has a product capable of capturing a larger share of the world market as microinverters proliferate.
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