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.

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.

SolarEdge said this “does not impact the solar business sale of batteries for residential and C&I markets,” implying the company will source battery components from other sources. ESS News has contacted SolarEdge for clarification.