Ideal Power's Q2 revenues hurt by storage incentives delay in California
Birds on a solar module. Author: Don McCullough. License: Creative Commons, Attribution 2.0 Generic.
US power conversion technology company Ideal Power Inc (NASDAQ:IPWR) saw its product revenue fall to USD 322,000 (EUR 293,000) in the second quarter of 2016 from USD 1.2 million in the prior-year period.
The Austin, Texas-based company, which targets markets such as standalone energy storage, solar plus storage, and microgrids, last week said its revenues in the first half of the year were impacted by delays in California, the leading market for standalone storage, of the state's Self Generation Incentive Program (SGIP).
It, however, expects to resume growth in the second half of the year following the resolution of the delay with incentive funding for storage projects in California. Ideal Power also expects initial revenues from its SunDial product in the fourth quarter of 2016. SunDial, introduced in May, is a commercial photovoltaic (PV) string inverter with an optional third port for the direct integration of solar and storage.
"The SunDial will enable us to diversify our revenue base as it is targeting the mature USD 6.9 billion solar inverter market, offering a storage option that we believe is unique in that market," said Dan Brdar, chairman and CEO.
The company's net loss widened to USD 2.5 million from USD 2.3 million in the second quarter of 2015.
In the half-year period net loss widened to USD 5.3 million from USD 4.5 million, while product revenue fell to USD 819,000 to USD 2.4 million.