SolarEdge announces closure of its Energy Storage Division

SolarEdge has announced it will close and sell off its energy storage business and assets, resulting in cutting its workforce by about 12%, with those in South Korea mostly affected, as it attempts to restructure its business.

Ronen Faier, the interim SolarEdge CEO, who was appointed in August 2024, said the measures tackle cost cutting, and a closer focus its core businesses.

“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,” said Faier.

“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.”

SolarEdge said the decision will result in a workforce reduction of approximately 500 employees, most of whom are in South Korea, without providing exact details.

A SolarEdge spokesperson told ESS News, in response to questions, that the closures only affect its utility-scale business, and manufacturing will continue in other regions.

“The recent announcement about the closure of our Energy Storage Division has no impact whatsoever on our residential and C&I solar-attached storage solutions. This includes both our current offering and our future development plans and roadmap. The affected division referred to in the announcement focused solely on the manufacturing of lithium-ion battery cells for BESS solutions in the utility segment.

SolarEdge will continue to develop, produce, and sell all residential and C&I storage solutions. The solar-attached energy storage business is not only continuing but expanding its local manufacturing capabilities in the United States, adding significant domestic production capacity.”

In terms of cost savings, the company said it expected quarterly operating expenses savings due to the closure of $7.5 million, with the full run rate expected to be achieved by the second half of 2025. It will also attempt to sell the assets related to the storage division activities including its manufacturing facilities for battery cells and packs.

In a separate announcement to the stock market, SolarEdge said it expects to incur $81 million to $99 million in charges from the pivot, largely from asset-related and impairment charges, as well as inventory write-offs and severance.

* This article was updated to reflect additional infomation provided by the company spokesperson.