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SolarEdge Boosting your PV Business

through Smart Energy Upselling

Frank Bakker

SolarEdge

Marian Willuhn

11 May 2020

2 PM – 3 PM1 PM – 2 PM

I CEST, BerlinI BST, London

Internal only

1

Growing Your PV Sales with Smart Energy UpsellingFrank Bakker, Product Manager

May 11, 2020

2

Agenda

Introduction to SolarEdge

Smart Energy Home Definition

Inverter as Smart Energy Manager

Smart Energy Offering

Using Smart Energy Products to Drive Sales

Use Case: Installer Average Revenue Per Installation

Use Case: Consumer

Q&A

3

One-Stop-Shop for Smart Energy Solutions

3

Smart Energy Management

Batteries, UPS, and EV Powertrains

Monitoring Platform and Grid ServicesEV Charging

Residential and Commercial PV Inverters

Smart Modules

4

Complete SolarEdge Residential Solution

4

Smart Energy Products

Monitoring Platform

PowerOptimizers

Inverters

StorEdge

A single solution for PV, storage, smart energy, and EV charging

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SolarEdge Offers Four Key Benefits

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Maximum space utilization with minimum design time

Safety during installation, maintenance, firefighting, & other emergencies

Full visibility of system performance & remote troubleshooting

Increased energy yield &

faster return on

investment through

module-level MPPT

More Energy Lower O&M Costs Enhanced Safety Flexible Design

Smart Energy Home Definition

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What is a Smart Home?

“A home that connects different appliances via communication network and allows them to be remotely controlled, monitored and accessed”

Source: https://www.housinglin.org.uk/_assets/Resources/Housing/Housing_advice/Smart_Home_-_A_definition_September_2003.pdf

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What is a Smart Energy Home?

Powers home appliances using both grid and available PV energy

Benefits:

✓ Maximize solar usage

✓ Increase energy independence

✓ Lower electricity bills

✓ Higher convenience

Morning Noon Evening

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Attribute Smart Home Smart Energy Home

Typical loads

Low loads: Lights, entertainment

devices, door bells, surveillance

cameras, door locks

Heavy loads: Water heaters, heat

pumps, HVAC systems, EV chargers

Power Production Low to zero High

Energy bills High Low

Typical operation Manual-based Automated

Smart Home versus Smart Energy Home

Improving the overall home energy efficiency by focusing on high-impact loads

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Today’s Top Energy Consumers and Applications

Room heating/cooling

up to 47%

Water heating

up to 22%Lighting

up to 17%

1 2 3Load

Hot water tanks,

residential pool heatersOutdoor garden

lighting, driveways

Heat pumps, air

conditioners

47%

14%

12%

Other-

27%

NA

38%

25%

7%

Other-

30%

AUS

35%

22%

17%

Other -

26%

EUR

Regional

focus:

Use

case:

Source: www.eea.europa.eu and SolarEdge market analysis

11

Global EV Growth

Source: http://usfunds.com/investor-library/frank-talk/move-over-tesla-ndash-china-holds-the-keys-to-electric-vehicles/#.XGq3_VwzaUk;

https://www.iea.org/media/topics/transport/3030CampaignDocumentFinal.pdf; http://usfunds.com/investor-library/frank-talk/move-over-tesla-

ndash-china-holds-the-keys-to-electric-vehicles/#.XLhoc-gzY2x

EV market is expected to increase globally from 1M EVs purchased in 2018 to ~20M in 2030

Demand is being created by IEA’s EV30@30

16 countries committed to reach 30% new EV sales by 2030

Electrification tipping point ~2025-2030

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EV Charging To Become Household’s Top Energy Consumer

EV charging becoming the most important load in a household

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Wash and dry

13%

Washing

7%

Light

9%

Others

16%IT/TV/Audio

27%

Cooling

17%

Cooking

11%

Typical Electricity Consumption in German

Household WITHOUT an EV

Wash and dry

7% Washing

4%Light

5%

Others

8%

IT/TV/Audio

14%

Cooling

9%Cooking 6%

EV

47%

Typical Electricity Consumption in German

Household WITH an EV

Assumptions:

• Average German electricity Consumption for a 3 person household: 2.6MWh/year

• Average daily km driven: 35km

• Charging required 0.18 kwh/km

Sources:

Source: HEA , SolarEdge

Inverter as Smart Energy Hub

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One Inverter for All Applications

Combine energy management of all applications into one smart inverter and app

Simple design

Fast installation

Cost effective

Centralized energy management

Designed to work together; seamless and synchronized

Integration with home automation platforms

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PV Storage Backup Device Control EV Charger

SolarEdge’sSmart Energy Offering

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Smart Energy Products

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Monitoring & Control

Main

dashboard

Setting device

schedule

Smart Energy Relay

Smart Energy Hot Water

Smart Energy Switch

Smart Energy Socket

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Smart Energy Hot Water

Designed to maximize self-consumption and reduce energy bills by automatically diverting and adjusting excess PV energy to hot water

Cost-effective energy storage

Compatible with SolarEdge smart energy products

Integrated with SolarEdge monitoring platform

Enables repetitive scheduled operation and remote ON/OFF functionality

Includes built-in consumption metering

Optional temperature sensor for optimized heating

Suitable for purely resistive loads of up to 5kW

Reads water temperature using an optional sensor connected to device

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Hot Water

Heater Smart Energy Hot

Water

Towards

AC mains

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Real-time System Visibility and Device Control

Manual

Tap to turn device on or off, or easily switch to Timer, or Auto Scheduler modes

Scheduler

Set multiple programs for automatic device operation. Diverts power to the device during the configured time-slots using excess PV power, or, if none is available, using grid power

Smart Save

Instruct the system to use available PV energy to power the appliance. Grid power is only used if PV energy is insufficient to meet the ‘Ready by’ time

Excess Solar Power Mode

Select an individual device to utilize excess PV energy before other

devices to ensure the device always benefits from the maximum

available PV energy

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Schedule and Smart Save Modes

Example:

If it takes your boiler one hour to heat water, a Total Time of one hour is set. The Ready by time is also set (in this case for 12:00 pm).

The boiler will start working before the Total Time when there is available PV

If there has not been enough available PV by the cut-off time (Ready by minus Total Time of one hour = 11:00 am), grid power will be used to guarantee hot water by 12:00 pm

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Smart Energy Applications

Enables repetitive scheduled operation

Supports remote ON/OFF functionality via wireless communications

Typical home appliances - heaters, garden lighting, fans, and more

AC loads up to 3kW

Built-in energy and power-consumption metering

High loads - smart grid-ready heat pumps, loads using an external control interface

Supports a wide input voltage range

Smart Energy Socket & Smart Energy Switch Smart Energy Relay

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Current

Looking Ahead - Getting Smarter

Time of Use Energy Prices

Real-Time PV Production

On-the-gocontrol

Learningof User

Behaviors

Appliance Consumption

Profiling

PV+StorageSystems

Thermostat Control

Personalized Profiles

Advanced User

Features

Future

Current

Smart Device

Portfolio

Expanded

Smart Device

Portfolio

Weather &

Irradiance

Forecast

Using Smart Energy Products to Drive Sales

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Increasing Average Revenue Per Installation (ARPI)

In the past, systems consisted of inverters and modules…

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Today systems are more advanced and include an expanded offering

Increasing ARPI

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Increasing demand for SolarEdge systems with energy management or storage products

From Simple to Advanced Systems

2015 2016 2017 2018 2019

Source: SolarEdge

Use Case: Installer ARPI

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Modules

Inverter &

Optimizers

Hardware BOS

Soft Costs - install

labor

Soft cost -

other

PV System

Increasing ARPI

Modules

Inverter &

Optimizers

Battery

Smart energy

devices

Hardware

BOS

Soft Costs -

install labor

Soft cost - other

PV System including Smart Energy Offering

Use Case: Consumer

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Smart Savings

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Below is a typical example of device operation with Smart Save and Schedule modes. Note that in Smart Save mode, the consumption is reduced by taking advantage of excess PV earlier in the day

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Annual Savings & Attractive ROI - Germany Case Study

Around 20% of the energy used by EU households is spent on heating water1

Household with PV (no hot water

heater)

Household with PV & 3kW

water heater device

PV System Size (kW dc) 6.3

Annual PV Production (kWh) 6783

Annual total consumption (kWh) 7161

Solar annual self-consumption

(kwh)3804 5404

PV self-consumption 56% 80%

Annual savings (EUR) €328

From total energy

needed to charge the

EV- 30% came from

solar energy

Assumptions:

• FIT - 0.09 cent/kWh

• Average electricity rate – 0.295 cent/kWh

• Annual savings calculation based on electricity rate and FIT 1European Commission

http://ec.europa.eu/clima/citizens/tips/index_en.htm

+

>90% water heating

from solar!

Consumer

ROI <2.5 years

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Enable Large Consumer Energy Savings

SolarEdge smart solar energy portfolio has the potential to manage up to 70%*of household consumption, resulting in 20-40%** in potential energy savings

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*Consolidated percentage may vary between 60-80% based on system specifications

** www.smart-energy.com/features-analysis/how-smart-homes-save-energy/

<70%

Energy Management Energy Savings

40%

Q&A

This power point presentation contains market data and industry forecasts from certain third-

party sources. This information is based on industry surveys and the preparer’s expertise in the

industry and there can be no assurance that any such market data is accurate or that any such

industry forecasts will be achieved. Although we have not independently verified the accuracy of

such market data and industry forecasts, we believe that the market data is reliable and that the

industry forecasts are reasonable.

Cautionary Note Regarding Market Data & Industry Forecasts

Thank You!

This power point presentation contains market data and industry forecasts from certain third-

party sources. This information is based on industry surveys and the preparer’s expertise in the

industry and there can be no assurance that any such market data is accurate or that any such

industry forecasts will be achieved. Although we have not independently verified the accuracy of

such market data and industry forecasts, we believe that the market data is reliable and that the

industry forecasts are reasonable.

Version #: V.1.0

Cautionary Note Regarding Market Data & Industry Forecasts

Thank You!