SolarEdge Technologies ( SEDG, Financial), a smart energy solutions company, announced a decision to shut down its Energy Storage division in an attempt to exit non-core business and better concentrate on solar activities. The move, based on a strategic review of its business segments and market environment, will lead to the shedding of about 500 positions, mainly in South Korea.
It will help the company trim operating costs by an estimated $7.5 million for the financial year and achieve full cost savings by mid-2025. However, the company was quick to clarify that its solar operations, which entail the sales of batteries to residential and commercial customers, will not be affected.
In this announcement, SolarEdge's Interim CEO Ronen Faier said that this step correlates with the company's strategic objectives, financial well-being, working capital, heating up solar, PV-attached storage, and energy management capabilities. Nonetheless, the company plans to continue selling off the storage division's assets, such as production facilities for battery cells and packs.
This restructuring decision attempts to show SolarEdge's focus on its areas of strength in the fast-growing energy technology market. The company has submitted additional information to the SEC in Form 8-K, which is accessible to the public.
Since SolarEdge changed its strategy, it intends to rationalize its operations so that it becomes the Mecca of excellence in the international solar energy marketplace.
