SolarEdge's Strategic Expansion in EV Charging Infrastructure: A Catalyst for Energy Transition and Shareholder Value

The energy transition is no longer a distant vision—it is a present-day imperative. As industries race to decarbonize, companies that can bridge the gap between renewable energy and electrification are emerging as critical players. SolarEdge Technologies (NASDAQ: SEDG) is one such innovator, leveraging its expertise in solar technology to pioneer integrated solutions for electric vehicle (EV) charging. The recent partnership with industrial giant Schaeffler exemplifies how SolarEdge is positioning itself at the intersection of clean energy and mobility, creating a compelling case for long-term shareholder value.

A Strategic Partnership with Schaeffler: Scaling EV Charging Infrastructure

In 2025, SolarEdge announced a landmark collaboration with Schaeffler, a global leader in automotive and industrial components, to deploy 2,300 EV charging points across Europe by 2030. This initiative begins with the electrification of Schaeffler's Technology Center in Herzogenaurach, Germany, where SolarEdge's Wevo technology—now integrated into its ONE for C&I energy optimization platform—powers a seamless charging experience for employees and fleet operators. The solution combines hardware, software, and services, including a custom app for user convenience, to create a frictionless system that aligns with Schaeffler's net-zero ambitions.

This partnership is more than a transactional agreement; it is a strategic alignment of two companies with complementary strengths. Schaeffler's industrial scale and global footprint provide SolarEdge with a platform to expand its EV charging infrastructure rapidly, while SolarEdge's advanced software and solar integration capabilities enhance Schaeffler's energy transition strategy. By leveraging existing solar infrastructure on Schaeffler's rooftops, the partnership reduces reliance on grid power, creating a closed-loop system that maximizes sustainability and cost efficiency.

The Competitive Edge: Integrated Solar and EV Charging

SolarEdge's value proposition lies in its ability to integrate solar, storage, and EV charging into a single ecosystem. The company's ONE EV Charger, launched in 2025, is a 22 kW unit designed to prioritize solar energy for EV fleets, reducing charging costs by up to 70% for early adopters like BV-comOffice. This is achieved through dynamic load balancing, where the system autonomously selects the most economical energy source—solar, battery, or grid—based on real-time data. Such innovation not only lowers operational expenses for businesses but also aligns with corporate ESG goals, making SolarEdge an attractive partner for industries seeking to decarbonize.

The company's ONE for C&I energy optimization platform further strengthens this ecosystem. By enabling remote monitoring, troubleshooting, and configuration, the software reduces downtime and maintenance costs, enhancing the overall return on investment for customers. This digital infrastructure is a critical differentiator in a market where operational efficiency is paramount.

Market Dynamics and Financial Prospects

The global solar-powered EV charging market is projected to grow at a compound annual growth rate (CAGR) of 25-30% through 2028, reaching $5 billion in value. SolarEdge's early mover advantage in this space positions it to capture a significant share of this growth. Analysts have set a one-year price target of $17.97 for SEDG, implying an 18.64% upside from its current price of $15.15. While the stock carries a “Hold” rating from most analysts, the GF Value model suggests a more aggressive 261.45% upside, reflecting optimism about SolarEdge's long-term potential.

Financially, SolarEdge has taken steps to strengthen its balance sheet. The company generated $26 million in free cash flow in Q4 2024 and has committed to share buybacks, signaling confidence in its intrinsic value. Additionally, management's recent stock purchases, including a $411,000 acquisition by Chairman Avery More, underscore alignment with shareholder interests.

Strategic Partnerships and ESG-Driven Growth

Beyond Schaeffler, SolarEdge is expanding its footprint through collaborations with tax advisory firms to streamline domestic content tax credits under the Inflation Reduction Act (IRA). These efforts reduce costs and enhance profitability, particularly in the U.S. market. The company's focus on U.S. manufacturing also aligns with regulatory tailwinds, ensuring compliance with clean energy incentives and reducing supply chain risks.

The integration of vehicle-to-grid (V2G) technology into SolarEdge's solutions further differentiates it. By enabling EVs to act as energy storage devices, the company opens new revenue streams for customers through grid services like frequency regulation and demand response. This innovation not only enhances grid resilience but also creates a recurring revenue model for SolarEdge.

Investment Implications

For investors, SolarEdge's strategic expansion into EV charging infrastructure presents a compelling opportunity. The company's ability to combine solar, storage, and software into a cohesive solution addresses a critical pain point in the energy transition: the need for cost-effective, scalable EV infrastructure. While short-term challenges—such as a recent EPS miss and negative gross margins—exist, SolarEdge's focus on innovation, cost optimization, and strategic partnerships positions it to deliver long-term value.

The Schaeffler partnership, in particular, is a testament to SolarEdge's ability to scale its solutions in high-growth markets. As corporate demand for ESG-aligned technologies intensifies, SolarEdge's integrated approach is likely to attract more industrial and commercial clients, driving revenue growth and margin expansion.

Conclusion

SolarEdge Technologies is not just a solar inverter company—it is a smart energy solutions provider redefining the future of mobility. By integrating solar power with EV charging infrastructure, the company is addressing the dual challenges of decarbonization and cost efficiency. The partnership with Schaeffler is a milestone in this journey, demonstrating SolarEdge's capacity to deliver large-scale, sustainable solutions. For investors with a long-term horizon, SolarEdge's strategic positioning in the energy transition offers a unique opportunity to capitalize on the convergence of renewable energy and electrification.