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Item 1. Business

2025-02-25 compared with 2024-02-26 · 421 added, 722 removed, 45 unchanged (96% of the section changed)

a leading provider of an optimized inverter solution that changed the way power is harvested and managed in photovoltaic (also known as

Our direct current (“DC”), optimized inverter system maximizes power generation while lowering the cost of energy

produced by the PV system for improved return on investment, or ROI.

We are a leading provider of an optimized inverter solution that changed the way power is harvested and managed in photovoltaic (also known as PV) systems.

Our direct current (“DC”), optimized inverter system maximizes power generation while lowering the cost of energy produced by the PV system for improved return on investment, or ROI.

Additional benefits of the DC optimized inverter system include:

comprehensive and advanced safety features, improved design flexibility, efficient integration (DC coupled) with SolarEdge storage solutions,

and improved operation and maintenance, or O&M, with remote monitoring at the module-level.

The typical SolarEdge DC optimized inverter

system consists of inverters, Power Optimizers, a communication device which enables access to a cloud-based Monitoring Platform and,

in many cases, a battery and additional smart energy management solutions and devices, such as EV chargers and load controllers.

of our hardware sales, we also provide the energy management software which controls, manages and optimizes the energy production, storage

and use of energy generated by our systems.

Our solutions address a broad range of solar market segments, from residential solar installations

to commercial and small utility scale solar installations.

Since we began commercial shipments in 2010, we have shipped approximately

52.6 gigawatts (“GW”) of our DC optimized inverter systems and our products have been installed in solar PV systems in over

140 countries.

introducing the DC optimized inverter solution in 2010, SolarEdge has expanded its activity to other areas of smart energy technology,

both through organic growth and through acquisitions.

By leveraging world-class engineering capabilities and with a relentless focus on

innovation, SolarEdge now offers energy solutions that include primarily the hardware technology used in residential, commercial, and

small scale utility PV systems and also product offerings in the areas of energy storage systems, or ESS, including manufacturing of lithium-ion

cells and batteries, smart trackers for solar panels, EV chargers, home and commercial energy management software, grid services and software

platforms and applications that enable development of virtual power plants, or VPPs.

sell our products indirectly to thousands of solar installers through large distributors and electrical equipment wholesalers and directly

to large solar installers and engineering, procurement, and construction firms, or EPCs.

Our customers include leading providers of solar

PV systems to residential and commercial end users, key solar distributors, and electrical equipment wholesalers.

December 31, 2023, we have shipped in the aggregate approximately 125.1 million Power Optimizers and 5.6 million inverters.

3.7 million PV installations, many of which may include multiple inverters, are currently connected to and monitored through our cloud-based

Monitoring Platform.

SolarEdge Solution.

comprehensive and advanced safety features, improved design flexibility, efficient integration (DC coupled) with SolarEdge storage solutions, and improved operation and maintenance, or O&M, with remote monitoring at the module-level.

The typical SolarEdge DC optimized inverter system consists of inverters, Power Optimizers, a communication device which enables access to a cloud-based Monitoring Platform and, in many cases, a battery and additional smart energy management solutions and devices, such as EV chargers and load controllers.

As part of our hardware sales, we also provide the energy management software which controls, manages and optimizes the energy production, storage and use of energy generated by our systems.

Our solutions address a broad range of solar market segments, from residential solar installations to commercial and small utility scale solar installations.

Since we began commercial shipments in 2010, we have shipped approximately 56.2 gigawatts (“GW”) of our DC optimized inverter systems and our products have been installed in solar PV systems in over 145 countries.

Since introducing the DC optimized inverter solution in 2010, SolarEdge has expanded its activity to other areas of smart energy technology, both through organic growth and through acquisitions.

By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge now offers energy solutions that include primarily the hardware technology used in residential, commercial, and small scale utility PV systems and also product offerings in the areas of energy storage systems, or ESS, including manufacturing of lithium-ion cells and batteries, smart trackers for solar panels, EV chargers, home and commercial energy management software, grid services and software platforms and applications that enable development of virtual power plants ("VPPs").

We primarily sell our products indirectly to thousands of solar installers through large distributors and electrical equipment wholesalers and directly to large solar installers and engineering, procurement, and construction firms, or EPCs.

Our customers include leading providers of solar PV systems to residential and commercial end users, key solar distributors, and electrical equipment wholesalers.

As of December 31, 2024, we have shipped in the aggregate approximately 132.1 million Power Optimizers and 5.8 million inverters.

More than 4.2 million PV installations, many of which may include multiple inverters, are currently connected to and monitored through our cloud-based Monitoring Platform.

The SolarEdge Solution.

The key advantages of our solution over a traditional string inverter PV system include:

PV module power output.

Our Power Optimizers provide module-level, or MPPT, and real-time adjustments of current and voltage to

the optimal working point of each individual PV module.

This enables each PV module to continuously produce its maximum power potential

independent of other modules in the same string, thus minimizing module mismatch and partial shading losses.

By performing these adjustments

at a very high rate, our Power Optimizers also solve the dynamic MPP losses associated with traditional inverters.

architecture with economies of scale.

Our system shifts certain functions of the traditional inverter to our Power Optimizers while

keeping the DC to AC function and grid interaction in our inverter.

As a result, our inverter is smaller, more efficient and more reliable

than inverters used in traditional string inverter systems.

The cost savings that we have achieved on the inverter enable our system to

be priced at a cost per watt that is comparable with traditional inverter systems of leading manufacturers.

As a PV system grows in size,

our inverter benefits from economies of scale, making our technology viable for large commercial and small-scale utility applications.

system design flexibility.

Unlike a traditional inverter system that requires each string to be the same length, use the same type

of PV modules and be positioned at the same angle toward the sun, our system allows significant design flexibility by enabling the installer

to place PV modules in uneven string lengths and on multiple roof facets.

This design flexibility increases the amount of the available

roof that can be utilized for power production.

As a result, our system is significantly less prone to wasted roof space resulting from

rooftop asymmetries and obstructions.

balance of system (BoS) costs.

Our DC optimized inverter system allows significantly longer strings to be connected to the same

inverter (as compared to a traditional inverter system).

• Maximized PV module power output.

Our Power Optimizers provide module-level, maximum power point ("MPP") tracking, i.e.

real-time adjustments of current and voltage to the optimal working point of each individual PV module.

This enables each PV module to continuously operate at its MPP, independent of other modules in the same string, thus minimizing power lost due to module mismatch (e.g.

due to manufacturing differences, aging, etc.) and partial shading.

By performing these adjustments at a very high rate, our Power Optimizers also reduce the dynamic MPP losses associated with traditional inverters.

• Optimized architecture with economies of scale.

Our system shifts certain functions of the traditional inverter to our Power Optimizers while keeping the DC to AC function and grid interaction in our inverter.

As a result, our inverter is smaller, more efficient and more reliable than inverters used in traditional string inverter systems.

The cost saving that we have achieved with the inverter enables our system to be priced at a cost per watt that is comparable with traditional inverter systems of leading manufacturers.

As a PV system grows in size, our inverter benefits from economies of scale.

This enables our technology to be viable for both large commercial and small-scale utility applications.

• Enhanced system design flexibility.

Unlike a traditional inverter system that requires each parallel connected string to be substantially the same length, use the same type of PV modules and be positioned at the same angle toward the sun, our system allows significant design flexibility by enabling the installer to place PV modules in uneven string lengths, on multiple roof facets, and in locations receiving different irradiance.

This design flexibility increases the amount of the available roof that can be utilized for power production.

As a result, our system is significantly less prone to wasted roof space resulting from rooftop asymmetries and obstructions.

• Reduced balance of system (BoS) costs.

Our DC optimized inverter system allows significantly longer strings to be connected to the same inverter (as compared to a traditional inverter system).

This reduces the cost of cabling, fuse boxes and other ancillary electric components.

These factors result in easier installations with shorter design times and a lower initial cost per watt, while enabling larger installations

monitoring and control to reduce operation and maintenance costs.

Our cloud-based monitoring platform provides full data visibility

at the module level, string level, inverter level and system level.

The data can be accessed remotely by any web-enabled device, allowing

comprehensive analysis, immediate fault detection and alerts.

These monitoring features reduce O&M costs for the system owner by identifying

and locating faults, enabling remote testing and reducing field visits.

These factors result in easier installations with shorter design times and a lower initial cost per watt, while enabling larger installations per rooftop.

• Continuous monitoring and control to reduce operation and maintenance costs.

Our cloud-based monitoring platform provides data visibility at the module level, string level, inverter level and system level.

The data can be accessed remotely by any web-enabled device, allowing comprehensive analysis, immediate fault detection and alerts.

These monitoring features reduce O&M costs for the system owner by identifying and locating faults, enabling remote testing and reducing field visits.

• Enhanced safety.

We have incorporated module-level safety mechanisms in our system to protect installers, electricians and firefighters.

Each Power Optimizer is configured to reduce output to 1 volt unless the Power Optimizer receives a fail-safe signal from a functioning

As a result, if the inverter is shut down (e.g., for system maintenance, due to malfunction, in the event of a fire or otherwise),

the DC voltage throughout the system is reduced to a safe level.

Our DC optimized inverters comply with the applicable safety requirements

of the regions in which they are sold, providing incremental cost savings to installers by eliminating the need for additional hardware

such as DC breakers, switches or fire-proof ducts required by traditional inverter systems.

In the U.S., the SolarEdge SafeDC feature

is compliant with NEC 2014 & NEC 2017 Rapid Shutdown functionality, Section 690.12.

SolarEdge inverters also have a built-in safety

feature designed to mitigate the effects of some arcing faults that may pose a risk of fire, in compliance with the UL1699B arc detection

In addition, some of the SolarEdge Power Optimizers include a "sense connect capability" which is designed to monitor Power

Optimizers’ connectors, and identify improper connections and possible malfunctions for early detection and mitigation of arc risks.

Solar PV systems are typically expected to operate for at least 25 years under harsh outdoor conditions.

Each Power Optimizer is configured to reduce output voltage to 1 volt unless the Power Optimizer receives a fail-safe signal from a functioning inverter that is paired to the optimizer.

As a result, if the inverter is shut down (e.g., for system maintenance, grid shutdown, due to malfunction, in the event of a fire or otherwise), the DC voltage throughout the system is reduced to a safe level.

Our DC optimized inverters comply with the applicable safety requirements of the regions in which they are sold, providing cost savings to installers by reducing the need for additional hardware such as DC breakers, switches or fire-proof ducts required by traditional inverter systems.

In the U.S., the SolarEdge SafeDC feature is compliant with NEC 2020 & NEC 2023 Rapid Shutdown functionality, Section 690.12.

SolarEdge inverters also have a built-in safety feature designed to mitigate the effects of some arcing faults that may pose a risk of fire, in compliance with the UL1699B arc detection standard.

Most SolarEdge inverters comply with IEC 63027 arc detection standards.

In addition, some of the SolarEdge Power Optimizers include the SolarEdge "Sense Connect" capability which is designed to monitor Power Optimizers’ connectors, and identify improper connections and possible malfunctions for early detection and mitigation of arc risks.

• High reliability.

is critical and is facilitated by systems and components that have low heat generation, solid and stable materials, and an absence of

moving parts.

Solar PV systems are typically expected to operate for at least 25 years under harsh outdoor conditions.

High reliability is critical and is facilitated by our utilization of systems and components that have low heat generation, solid and stable materials, and the minimal use of moving parts in our products.

We have designed our system to meet these stringent requirements.

Our Power Optimizers’ high switching frequency allows

the use of ceramic capacitors with a low, fixed rate of aging and a proven life expectancy in excess of 25 years.

Further, we use automotive-grade,

application-specific integrated circuits (“ASICs”) that embed many of the required electronics.

This reduces the number of

components and consequently the potential points of failure.

Coupling with Energy Storage.

Our DC optimized inverter system allows solar energy to be directly stored in batteries without any

conversion, referred to as DC coupling, thereby eliminating energy losses that are associated with such conversions.

This enables better

management of energy stored in the battery, hence improving efficiency, increasing savings for the end user and increasing the overall

return on investment, or, ROI.

When coupled with a DC enabled EV charger, solar energy can directly charge the electric vehicle, without

any AC conversion applying similar energy retention due to less conversions.

Our residential and commercial systems feature the SolarEdge ONE energy optimization system which manages solar energy,

battery storage, smart devices, and grid interaction.

This smart energy management capability enables system owners to store solar energy

at cost-effective times, and also control the timing of their PV energy consumption in order to increase their energy independence, take

advantage of lower time-of-use rates, reduce electricity bills, and improve overall system ROI.

Energy Generation.

As the electric grid transitions from centralized power stations to a network of distributed, renewable energy

sources, our inverter can serve as a local control system that can manage the energy resources underlying such a distributed network.

Our inverters can be used to create a distributed and interactive grid that can help support grid stability.

One such example is inverter-enabled

charging and discharging of batteries as part of a Virtual Power Plant or VPP, to help manage the load on the grid and support grid stability.

Product Offering

Our primary segment is

our solar business, which includes the following products:

Power Optimizer.

Our Power Optimizer which forms an integral part of our DC optimized inverter system is a highly reliable and

efficient DC-to-DC converter which is connected by installers to each PV module or embedded by PV module manufacturers into their modules

as part of the manufacturing process.

Our Power Optimizer increases energy output from the PV module to which it is connected by continuously

tracking the Maximum Power Point or MPP of each module and controlling its production point.

The Power Optimizer’s ability to track

the MPP of each PV module and its ability to increase or decrease its output voltage enables the inverter’s input voltage to remain

fixed under a large variety of string configurations.

This feature enhances the flexibility in PV system designs, enabling use of different

string lengths in a single PV system connected to the same inverter, use of PV modules situated on multiple orientations connected to

the same inverter, and using varied PV module types in the same string.

In addition, our Power Optimizers monitor the performance of each

PV module and communicate this data to our inverter using our proprietary power line communication.

In turn, the inverter transmits this

information to our monitoring server.

Each Power Optimizer is equipped with our proprietary safety mechanism which automatically reduces

the output voltage of each PV module to 1 volt unless the Power Optimizer receives a fail-safe signal from a functioning inverter.

a result, if the inverter is shut down (e.g., for system maintenance, due to malfunction, in the event of a fire or otherwise), the system

is designed to reduce the DC voltage to a safe level.

Power Optimizers are designed to withstand high temperatures and harsh environmental conditions and contain multiple bypass features that

localize failures and enable continued system operation in the vast majority of cases of Power Optimizer failure.

Our Power Optimizers

are compatible with most modules on the market today and carry a 25-year product warranty.

During the year ended December 31, 2023, the

year ended December 31, 2022 and the year ended December 31, 2021, revenues derived from the sale of Power Optimizers represented 30.3%,

36.5% and 42.2% of total revenues, respectively.

Our DC-to-AC inverters which form an integral part of our DC optimized inverter systems, contain sophisticated digital

control technology with efficient power conversion architecture resulting in superior solar power harvesting and high reliability, and

are designed to work exclusively with our DC Power Optimizers.

A proprietary power line communication receiver is integrated into each

inverter, receiving data from our Power Optimizers, storing this data and transmitting it to our monitoring server when an internet connection

Since each string which is equipped with our Power Optimizers provides fixed input voltage to our inverter, the inverter is able

to operate at its highest efficient at all times and therefore is more cost effective, energy efficient and reliable.

our Power Optimizers, our inverters are designed to withstand harsh environmental conditions.

We currently offer single-phase inverters

designed to address the residential market (3 kilowatt (“kW”) to 11.4 kW) three-phase inverters designed to address the residential

and commercial markets (4 kW to 120 kW), and three-phase inverters designed to address the ground mount market (300kW to 330kW).

SolarEdge released the 330kW inverter coupled with new H-Series Power Optimizers for distributed and centralized inverter configurations.

This inverter is designed for small-scale utility installations, agriculture or Agri-PV sites that harvest crops and solar energy on the

same farmland, and Community Solar installations which bring smart energy savings to households, businesses and public organizations.

The SolarEdge Home Battery 400V, our DC-coupled, 10kWh, single phase battery integrates with our SolarEdge Home Hub

family of inverters.

When connected with our SolarEdge Home Backup Interface (BUI), the SolarEdge Home Battery provides homeowners the

ability to power their homes even when the grid is off for anywhere from several hours to many days, depending on use of loads and available

sunlight during the outage.

The battery also works in tandem with the SolarEdge ONE energy optimization system to optimize the use of

solar energy in places with different types of import and export tariffs scenarios (such as time of use, or TOU and dynamic rates).

the SolarEdge backup solution, power is stored in a battery and can be used during a power outage to power essential devices such as refrigerators,

communication devices, lighting, and AC outlets for anywhere from several hours to many days, depending on use of loads and available

sunlight during the outage.

SolarEdge sells EV chargers for residential applications which allow the homeowner to redirect excess PV energy to power

their electric vehicles.

This enables consumer to increase their self-consumption of clean energy.

The SolarEdge ONE smart energy optimization

system can be programmed to automatically charge the vehicle using the most advantageous and economical times and rates.

Energy Products.

As the solar energy industry has evolved, SolarEdge has developed innovative solutions to further enhance smart

energy technology, including inverters that include compatibility with batteries for increased self-consumption for backup, backup interfaces

devices, smart meters, smart energy management devices (sockets, hot water controllers, wireless relay) and smart PV modules.

expansion has enabled us to increase average the revenue per installation, or ARPI.

Our SolarGik smart PV tracker is optimized for installations on constrained and sloped terrains, eliminating the need

for costly grading and construction.

Our trackers come with advanced software that is designed to optimize production, predict weather

changes, maximize bifacial gains and respond to remote commands.

The tracker solutions are light weight, which allows them to be installed

not only in regular ground mount projects, but also on rooftops, greenhouses, carports and agricultural fields.

Our Power Optimizers’ high switching frequency allows the use of ceramic capacitors with a low, fixed rate of aging and a proven life expectancy in excess of 25 years.

Further, we use application-specific integrated circuits (“ASICs”) that embed many of the required electronics.

This reduces the number of components and consequently the potential points of failure.

• DC Coupling with Energy Storage.

Our DC-optimized inverter system enables direct storage of solar energy in batteries without the need for DC-AC or AC-DC conversions, a process known as DC coupling.

This approach eliminates energy loss that is typically associated with such conversions, allowing for more efficient energy management within the battery.

As a result, users benefit from improved efficiency, increased savings, and a higher overall return on investment (ROI).

Additionally, when paired with a DC-enabled EV charger, solar energy can directly charge electric vehicles, further enhancing energy retention by minimizing conversion losses.

• Energy Management.

We have developed smart energy management software and capabilities that are offered with our hardware solutions

and enable system owners to store solar energy at cost-effective times, and also control the timing of their PV energy consumption in

order to increase their energy independence, take advantage of lower time-of-use rates, reduce electricity bills, and improve overall

we launched the SolarEdge Home smart energy ecosystem which enables homeowners to control and optimize their energy production, consumption

and storage with mySolarEdge app.

SolarEdge Home manages the home’s production and usage 24 hours a day, 7 days a week through the

SolarEdge ONE energy optimization system which analyzes a variety of external and internal data to minimize electricity costs and maximize

In addition to SolarEdge Power Optimizers, inverters and batteries, SolarEdge Home has capabilities enabling integration with

SolarEdge Home batteries, EV chargers, load controls and third party devices, to monitor and optimize the home energy production and usage.

The features are thus far available in the United States, in Germany and are being released elsewhere around the world over time.

addition, in April 2023, we completed the acquisition of all outstanding shares of Hark Systems Ltd.

("Hark"), a UK-based energy IoT company

for the commercial and industrial ("C&I") sector.

Hark's platform is designed to enable commercial and industrial customers expanded

capabilities in energy management and connectivity, including identification of potential energy savings, detection of anomalies in assets’

energy consumption, and optimization of energy usage and carbon emissions through load orchestration and storage control.

Software Solutions.

We offer a variety of professional software tools to support the complete PV planning, installation, monitoring

and maintenance processes of our DC optimized inverter solutions:

The SolarEdge monitoring platform is a cloud-based monitoring platform which collects power, voltage, current and system

data sent from SolarEdge inverters and Power Optimizers and allows users to view the data for their SolarEdge site/s at the module level,

string level, inverter level and system level from most browsers and from most smart phones and tablets.

The monitoring software continuously

analyzes data and flags potential problems.

The monitoring software includes features which are used on a routine basis by integrators,

installers, maintenance staff, and system owners to improve a solar PV system’s performance.

The mySolarEdge application enables system owners to track their real-time system production and household energy consumption,

view their inverter and battery status for quick troubleshooting, and control the battery's back-up capabilities, all from their mobile

Our designer platform is a proprietary web-based tool that helps solar professionals plan, build and validate residential

and commercial systems from inception to installation.

application .

The mapper application provides SolarEdge installers with an efficient, streamlined process for registering the physical

layout of new PV sites installed with SolarEdge DC optimized inverter systems in the SolarEdge Monitoring Platform.

Installers can use

the Mapper application to scan SolarEdge Power Optimizer and SolarEdge inverter barcodes, creating a virtual map of the PV site in the

monitoring platform which can later help facilitate remote diagnostics thereby enabling enhanced customer support and reducing maintenance

costs for installers and SolarEdge system owners.

The SetApp application is used to activate and configure SolarEdge inverters

during commissioning directly through a smartphone, in order to simplify and expedite installations.

As PV and storage continue to proliferate around the world, energy production is transitioning from a centralized system

to a distributed network model, where energy is produced close to the location in which it is consumed and stored.

This model creates

an opportunity for new interconnected and decentralized energy networks offering improved grid reliability and stability, new energy service

and reduction of grid infrastructure costs.

SolarEdge grid services deliver near real-time aggregative control and data reporting, enabling

the pooling of distributed energy resources - photovoltaic systems, battery storage and electric vehicle chargers — in the cloud

for the creation of virtual power plants (VPP).

The SolarEdge grid services and VPP solution provide management platforms to enable near

real-time, aggregated control of available energy resources to meet ever-changing supply needs and demand.

Our distributed energy resources

management system or DERMS application and application program interfaces (APIs) are used by utilities for countering peak demand events

and participating in various electricity markets.

In 2023, SolarEdge continued to sell grid services in the U.S., Europe and Australia,

including services provided to independent system operators, energy retailers, national installers and others.

from Non-Solar businesses.

The SolarEdge Energy Storage segment provides energy storage solutions which include battery cells,

modules, racks and containerized battery systems (BESS).

The proprietary technology of our cells and batteries is manufactured and assembled

in our own facilities in South Korea, which have production capacity of 2GWh.

lithium-ion technology packs high energy density into small footprints and supports high c-rate power throughputs, without compromising

the calendar and cycle life of the battery.

ESS solutions are used in different fields, such as stationary energy storage (EV charging, utility, commercial or industrial), energy

storage in transportation (trains, trams and marine-based transportation), different engineering, procurement and construction projects

in the grid and C&I energy space, and more.

products in the solar segment reflect the innovation focus and capabilities of our technology departments as well as the importance we

place on creating value for our customers.

Our residential and commercial systems feature SolarEdge ONE, a single platform to manage, monitor and gain real-time, module-level insights on all site energy assets.

SolarEdge ONE manages a site’s entire energy portfolio, including PV, battery storage, EV, smart devices, and building assets, to ensure optimized performance of each component.

It includes a wealth of innovative capabilities tailored to the specific needs of the varying residential and commercial system stakeholders and is fortified with advanced cyber capabilities designed to protect against current and future cyber threats.

For residential systems, SolarEdge ONE optimizes the way homeowners use, store, and sell their energy, in accordance with their personalized preferences.

It enables users to store solar energy at cost-effective times.

It also allows homeowners to control the timing of their PV energy consumption in order to increase their energy independence, take advantage of lower time-of-use rates, reduce electricity bills, and improve overall system return on investment.

Commercial installations benefit from SolarEdge ONE’s ability to synchronize production, consumption, and storage to align with business goals, making data-driven decisions based on customer definitions and market conditions.

SolarEdge ONE includes robust monitoring and reporting tools that enable PV professionals to enhance operational efficiencies and lower maintenance costs across their fleets.

The SolarEdge ONE for commercial and industrial (C&I) capabilities extend to optimization and management of sites featuring large quantities of EV chargers (e.g.

workplaces, parking lots, apartment buildings, public charging stations, etc.) as well as support for enterprises seeking to take control of their energy usage with greater energy management and connectivity capabilities, enabling more efficient and sustainable energy management.

• Distributed Energy Generation.

As an electric grid evolves from centralized power stations to a network of distributed, renewable energy sources, our inverter can serve as a local control system that manages the energy resources within such a distributed network.

Our inverters facilitate the creation of a distributed and interactive grid, enhancing grid stability.

One such example is inverter-enabled charging and discharging of batteries within a VPP, helping to manage grid load and support grid stability.

Our Product Offering

Our primary segment is our solar business, which includes the following products:

SolarEdge Power Optimizer.

Our Power Optimizer which forms an integral part of our DC optimized inverter system is a highly reliable and efficient DC-to-DC converter which is connected to each PV module.

Our Power Optimizer increases energy output from the connected PV module by continuously tracking the MPP of the module and controlling its operating point.

The Power Optimizer’s ability to track the MPP of the connected PV module and its ability to adjust the optimizer output voltage enables the inverter’s input voltage to remain fixed under a large variety of string configurations.

This feature enhances the flexibility in PV system designs, enabling a single inverter to be connected to strings of different lengths to PV modules featuring multiple orientations, and using various PV module types.

In addition, our Power Optimizers monitor the performance of each PV module and communicate performance data to our inverter using our proprietary power line communications ("PLC").

In turn, the inverter transmits this information to our monitoring server.

Each Power Optimizer is equipped with our proprietary safety mechanism which automatically reduces the output voltage of each PV module to 1 volt unless the Power Optimizer receives a fail-safe signal from a paired functioning inverter.

As a result, if the inverter is shut down (e.g., for system maintenance, due to malfunction, in the event of a fire or otherwise), the system is designed to reduce the DC voltage to a safe level.

Some of our SolarEdge Power Optimizers include our "Sense-Connect” capability which is designed to monitor Power Optimizers’ connectors to identify improper connections and possible malfunctions, enabling the early detection and mitigation of arc risks.

Our Power Optimizers are designed to withstand high temperatures and harsh environmental conditions and contain multiple bypass features that localize failures and enable continued system operation, even in cases of Power Optimizer failure, in the vast majority of cases.

Our Power Optimizers are compatible with most modules on the market today and carry a 25-year product warranty.

During the year ended December 31, 2024, the year ended December 31, 2023 and the year ended December 31, 2022, revenues derived from the sale of Power Optimizers represented 34.9%, 30.3% and 36.5% of total revenues, respectively.

SolarEdge Inverters.

Our DC-to-AC inverters which form an integral part of our DC optimized inverter systems, contain sophisticated digital control technology with efficient power conversion architecture resulting in superior solar power harvesting and high reliability, and are designed to work exclusively with our DC Power Optimizers.

A proprietary power line communication receiver is integrated into each inverter, receiving data from our Power Optimizers, storing this data and transmitting it to our monitoring server when an internet connection exists.

Since each string that features our Power Optimizers provides fixed input voltage to our inverter, the inverter is able to operate at an optimized efficiency at all times and therefore is more cost effective, energy efficient and reliable.

Like our Power Optimizers, our inverters are designed to withstand harsh environmental conditions.

We currently offer single-phase inverters designed to address the residential market (3 kilowatt (“kW”) to 11.4 kW), and three-phase inverters designed to address the residential and commercial markets (4 kW to 120 kW).

We also offer our three-phase SolarEdge Terramax™ inverters, which are designed to address the ground mount market (300kW to 330kW).

Paired with our H-Series Power Optimizers, the SolarEdge Terramax™ supports distributed and centralized inverter configurations and is designed for small-scale utility installations, community solar, floating PV, and dual use Agri-PV sites that harvest crops.

The vast majority of our inverters are sold with a 12 year warranty that is extendable to 20 or 25 years for an additional cost.

During the year ended December 31, 2024, the year ended December 31, 2023 and the year ended December 31, 2022 revenues derived from the sale of inverters, represented 27.5%, 46.2% and 36.6% of our total revenues, respectively.

Storage Solutions.

For the Residential Market :

The SolarEdge Home Battery 400V, our DC-coupled, 10kWh, single phase battery integrates with our single phase SolarEdge Home Hub and Wave family of inverters.

We also offer the SolarEdge Home Battery 48V, our DC-coupled, 4.6kWh, battery that integrates with our three phase SolarEdge Home Hub Inverters.

When connected with our SolarEdge Home Backup Interface (BUI), either our single and three phase inverters, the SolarEdge Home Battery provides homeowners the ability to power their homes even when the grid is off for anywhere from several hours to many days, depending on use of loads and available sunlight during the outage.

The battery also works in tandem with the SolarEdge ONE energy optimization system to optimize the use of solar energy in locations with different types of import and export tariffs scenarios (such as time of use and dynamic rates).

With the SolarEdge backup solution, power is stored in a battery and can be used during a power outage to power essential devices such as refrigerators, communication devices, lighting, and AC outlets for anywhere from several hours to many days, depending on use of loads and available sunlight during the outage.

For the Commercial market :

Released in 2024, the SolarEdge CSS-OD is a 102.4 kilowatt hour (“kWh") rated solution scalable up to megawatt hour ("MWh") size sites, suitable for indoor outdoor or indoor installations.

It consists of a pre-assembled battery cabinet and battery inverter, featuring safety features and connects with the SolarEdge PV system.

The CSS-OD is managed by the SolarEdge ONE for our C&I energy optimization platform, which controls the battery’s functionality to support various use cases such as maximum self-consumption, peak shaving and more, for maximum electricity savings.

The CSS-OD solution also supports backup power by integrating with the CSS-OD back up unit, or BUI, which is available in some countries.

It is designed to avoid downtime with uninterrupted power supply, ensuring continuous business operations during unplanned outages or challenging grid conditions such as load shedding.

For small-scale indoor/outdoor commercial sites, we also offer our modular SolarEdge 48V battery.

Scaling up to 69kW per hour per site, this battery supports new and existing PV installations connected to three phase SolarEdge commercial inverters.

This on-grid storage solution can enable system owners to reduce their electricity costs by storing excess solar production in the battery for maximizing self-consumption and by boosting their resilience to volatile electricity prices.

EV Chargers and Software management of EV charging.

SolarEdge sells EV chargers for residential and commercial applications which allow the system owner to redirect excess PV energy to charge electric vehicles.

This product enables consumers to increase their self-consumption of clean energy.

The SolarEdge ONE smart energy optimization system can be programmed to automatically charge the EVs using energy generated at the most advantageous times and the optimal economically efficient rates.

In addition, in April 2024, we completed the acquisition of all outstanding shares in Weev Energy B.F.

Ltd., ("Wevo").

Wevo is a software company specializing in EV charging optimization and management for sites with large quantities of EV chargers such as apartment buildings, workplace parking lots, and public charging locations.

The Wevo solution is expected to become a part of the SolarEdge ONE energy optimization system for our C&I segment, designed to offer SolarEdge customers a single energy optimization solution that manages and integrates between on-site solar generation, battery storage and large-scale EV charging.

Smart Energy Products.

As the solar energy industry evolves, SolarEdge has and continues to develop innovative solutions to further enhance smart energy technology, including inverters that include compatibility with batteries for increased self-consumption for backup, backup interfaces devices, smart meters, smart energy management devices (sockets, hot water controllers, wireless relay) and smart PV modules.

This product expansion has enabled us to increase average revenue per installation, or ARPI.

Smart Trackers.

Our SolarGik smart PV tracker is optimized for installations on constrained and sloped terrains, eliminating the need for costly grading and construction.

Our trackers come with advanced software that is designed to optimize production, predict weather changes, maximize bifacial gains and respond to remote commands.

The tracker solutions are light weight, which allows them to be installed not only in regular ground mount projects, but also on rooftops, greenhouses, carports and agricultural fields.

Smart Energy Management.

We have developed smart energy management software and capabilities that integrate seamlessly with our hardware solutions.

These innovations enable system owners to store solar energy at cost-effective times, and control the timing of their PV energy consumption.

This approach increases their energy independence, take advantage of lower time-of-use rates, reduces electricity bills, and improves overall system ROI.

SolarEdge ONE is an energy optimization system, designed for a dynamic energy landscape.

It deploys a personalized 24-hour home energy plan that adapts to real-time market and weather changes, optimizing how homeowners use, store & sell their PV power to maximize savings.

ONE is based on AI algorithms that gather & process data from three sources:

external data (weather forecasts, utility rates), internal data (homeowner usage patterns & PV system parameters), and homeowner preferences and schedules.

SolarEdge ONE is designed to adapt to dynamic or peak rates tariffs, optimize negative rates, facilitate VPP participation, and maximize self-consumption & backup duration, while synchronizing with site data & correcting itself in real-time.

In April 2023, SolarEdge completed the acquisition of all outstanding shares of Hark Systems Ltd.

("Hark"), a UK-based energy IoT company for the C&I sector.

Hark's platform is designed to enable commercial and industrial customers expanded capabilities in energy management and connectivity, including identification of potential energy savings, detection of anomalies in assets’ energy consumption, and optimization of energy usage and carbon emissions through load orchestration and storage control.

SolarEdge Software Solutions.

We offer a variety of professional software tools to support the complete PV system planning, installation, monitoring and maintenance processes of our DC optimized inverter solutions:

Monitoring Platform .

The SolarEdge monitoring platform is a cloud-based monitoring platform which collects power, voltage, current temperature, and other data sent from SolarEdge inverters and Power Optimizers and allows users to view the data pertaining to their SolarEdge site/s at the module level, string level, inverter level and system level.

The monitoring platform is accessible from most browsers and from most smart phones and tablets.

The monitoring software continuously analyzes data and flags potential issues.

The monitoring software includes features which are used routinely by integrators, installers, maintenance staff, and system owners to improve a solar PV system’s performance.

mySolarEdge app .

The mySolarEdge application enables system owners to track their real-time system production and household energy consumption, view their inverter and battery status for quick analysis, and control the battery's back-up configuration, all from their mobile phones.

SolarEdge Go app .

The SolarEdgeGo app is a mobile application designed for SolarEdge installers, integrating installation, management, and service capabilities into a single platform.

This comprehensive app allows installers to manage their fleets efficiently by providing real-time alerts, equipment management, and user administration.

It also offers remote service and operation features, including diagnosis, troubleshooting, and configuration, which help minimize downtime and reduce the need for on-site visits.

Additionally, SolarEdge Go simplifies the commissioning process with an intuitive step-by-step “wizard” and detailed reports, ensuring streamlined installations.

This app enhances the overall installer experience by consolidating multiple functionalities into one tool, making it convenient for installers to monitor and manage their entire fleet.

Designer platform .

Our designer platform is a proprietary web-based tool that helps solar professionals plan, build, simulate, and validate residential and commercial systems from inception to installation.

Mapper application .

The mapper application provides SolarEdge installers with an efficient, streamlined process for registering the physical layout of new PV sites installed with SolarEdge DC optimized inverter systems in the SolarEdge Monitoring Platform.

Installers can use the Mapper application to scan SolarEdge Power Optimizer and SolarEdge inverter barcodes, creating a virtual map of the PV site in the monitoring platform.

The map may later help facilitate remote diagnostics thereby enabling enhanced customer support and reducing maintenance costs for installers and SolarEdge system owners.

SetApp application.

The SetApp application is used to activate and configure SolarEdge inverters during commissioning directly through a smartphone.

This application is designed to simplify and expedite installations.

Grid Services.

As PV and storage continue to proliferate around the world, energy production is transitioning from a centralized system to a distributed network model, where energy is produced and stored close to the location in which it is consumed.

This model creates an opportunity for new interconnected and decentralized energy networks offering improved grid reliability and stability, new energy service and reduction in grid infrastructure costs.

SolarEdge grid services deliver near real-time aggregated control and data reporting, enabling the pooling of distributed energy resources - photovoltaic systems, battery storage and electric vehicle chargers, in the cloud for the creation of VPPs.

The SolarEdge grid services and VPP solution provide management platforms to enable near real-time, aggregated control of available energy resources to meet ever-changing supply needs and demand.

Our Virtual Power Plant program interfaces (APIs) are used by our partners for countering peak demand events and for participating in various electricity markets.

In 2024, SolarEdge continued to sell grid services in the U.S., Europe and Australia, including services provided to independent system operators, energy retailers, national installers and others.

In the last year, SolarEdge has introduced flexible grid services by partnering with Axle Energy in the United Kingdom and with Frank Energie in the Netherlands.

Product Roadmap

Our solar segment products reflect our focus on innovation, the capacity of our technology departments as well as the emphasis that we put on creating value for our customers.

Our core solar product roadmap is divided into five categories:

Power Optimizers, inverters,

software which supports our DC optimized inverter systems, batteries for PV applications, and smart energy management.

We currently sell our third and fourth generations of Power Optimizers (P-Series and S-Series, respectively) which

were designed for fully automated assembly and are based on our third and fourth generation ASICs, respectively.

We have launched H1300,

a Gen 4 based power optimizer, as a part of the SolarEdge 330kW inverter solution.

This is our first optimizer equipped with high frequency

DC power line communications technology which allows communication with larger numbers of optimizers for ground mount applications as

well as improved remote software upgrade capabilities, allowing larger installations to support Ground Mount applications, as well as

improved remote upgrade.

We are in the process of launching our fifth generation S1400 Series Power Optimizers.

A key element of our reliability

strategy, and a significant differentiator relative to our competitors, is our use of proprietary ASICs to control, among other things,

our Power Optimizer’s power conversion, safety features, and PV module monitoring.

Instead of using large numbers of discrete components,

our Power Optimizer uses a single proprietary ASIC, thus reducing the total number of components in an electrical circuit and thereby

improving reliability.

new ASIC generation reduces the number of components required for any given functionality, adds more functions to the Power Optimizer,

and meaningfully improves the efficiency of the Power Optimizer.

The efficiency improvement reduces the energy losses which in turn reduces

the amount of heat dissipation.

This enables design of a more cost-effective and usually smaller enclosure and also keeps the electronics

cooler, thereby improving the Power Optimizer’s reliability.

Our research and development teams continuously work on further improving

our ASICs and releasing new generations of this improved technology.

Power Optimizers, inverters, software supporting our DC optimized inverter systems, batteries for PV applications, and smart energy management.

Power Optimizers.

We currently sell our fourth and fifth generation of Power Optimizers, the S-Series, designed for fully automated assembly and based on our fourth and fifth generation ASICs, respectively.

We have launched the H1300, a Gen 4 based power optimizer, as a part of the SolarEdge TerraMax™ inverter solution, and expect to add the H1500 Power Optimizer to the TerraMax™ offering.

The H1500 will enable more power per string and support even higher power PV modules, leading to reduced BoS costs.

The H-Series models are our first optimizer equipped with high frequency DC power line communications technology which allows communication with larger numbers of Power Optimizers for ground mount applications as well as improved remote software upgrade capabilities.

A key element of our reliability strategy, and a significant differentiator relative to our competitors, is our use of proprietary ASICs to control our Power Optimizer’s power conversion, safety features, and PV module monitoring.

Instead of using large numbers of discrete components, our Power Optimizer uses a single proprietary ASIC, thus reducing the total number of components in an electrical circuit and improving reliability.

With each new ASIC generated, we have reduced the number of components required for any given functionality, thereby adding more functions to the Power Optimizer, and meaningfully improves its efficiency.

This improvement in efficiency reduces energy loss, which in turn, decreases heat dissipation.

This enables design of a more cost-effective and typically smaller enclosure and while keeping the electronics cooler, thereby improving the Power Optimizer’s reliability.

Our research and development teams continuously work on further improving our ASICs and releasing new generations of this advanced technology.

Our inverter roadmap includes both new products as well as additional capabilities for existing inverters.

Our inverter roadmap is intended

to serve four purposes:

(i) expand addressable markets by developing new and larger inverters designed specifically for larger commercial

installations and utility-scale projects;

(ii) improve the electronics to increase the total power throughput while minimally changing

the existing enclosure, thereby reducing the actual cost per watt and increasing economies of scale;

(iii) improve ease of installation

by integrating additional functionality required in certain installations in order to reduce costs of additional hardware and subcontractors’

and (iv) improve the residential inverter's functionality to serve as a hub for home energy management, integrating, controlling

and optimizing the main home energy sources and loads.

Our inverter roadmap is intended to serve four main purposes:

(i) expand addressable markets:

develop new and larger inverters, designed specifically for larger commercial installations and utility-scale projects;

(ii) improve electronic design:

increase total power throughput while minimally changing the existing enclosure, thereby reducing cost per watt and increasing economies of scale;

(iii) simplify and enhance ease of installation:

integrate additional functionality required in certain installations to reduce costs of additional hardware and subcontractors’ labor costs;

and (iv) improve the residential inverter's functionality:

serve as a hub for home energy management, integrating, controlling and optimizing the main home energy sources and loads.

We continue to expand our software offering with the introduction of new tools and features.

This includes both professional web-based

software and system owner applications such as fleet management, the site designer tool, the mySolarEdge consumer applications, all of

which are offered to our install base as complimentary to the sales of our hardware solutions.

Our cloud-based Monitoring

Platform is continuously growing by the amount of data aggregated.

We are continuously developing tools to accommodate our growth and

further enhance our service offering.

We plan to continue developing algorithms that detect and pinpoint problems that can affect power

production in field systems.

We further plan to add more capabilities through our public API to allow users to build and integrate our

system into their own systems and build and share useful applications based on monitoring data gathered by our software.

for PV applications.

Our residential storage solution, launched in 2021, is designed

to integrate with our single-phase and three-phase inverters to provide optimal energy management, maximum efficiency, longer backup times

and ease of use for the homeowners.

We expect to continue to expand our storage solutions to cover more applications, improve battery

management, efficiency and integration with energy management systems.

Energy Management.

We are developing new features and capabilities for the smart energy

management solutions, which are constantly evolving, such as our SolarEdge Home Local Controller, which will enable the homeowner to run

and manage their most energy-intensive devices on excess solar energy.

We are also introducing smart energy management and fleet management

to the commercial segment.

We also plan on expanding the availability of our smart energy products, including smart energy management

devices, to new geographies and use cases.

Products or Product Categories.

These include both professional web-based software and system owner applications such as fleet management, the site designer tool, the mySolarEdge consumer applications, all of which are offered to our install base as complimentary to the sales of our hardware solutions.

Our cloud-based Monitoring Platform is in the process of being phased out, as we continue to migrate users to the new SolarEdge One energy optimization platform, launched in 2024.

We are continuously developing tools to accommodate our growth and further enhance our service offering.

We continue developing algorithms that detect and pinpoint problems that can affect power production in field systems.

We plan to add more capabilities through our public API to allow users to build and integrate our system into their own systems and build and share useful applications based on monitoring data gathered by our software.

Since our acquisition of Wevo, in April 2024, we continue to integrate Wevo's charging optimization and management software capabilities into our SolarEdge ONE for C&I platform.

We are also working to provide partners with enhanced transparency and control over their energy usage and carbon emissions, by integrating new energy management and connectivity capabilities with SolarEdge

Batteries for PV applications.

Our residential storage solution, launched in 2021, is designed to integrate with our single-phase and three-phase inverters to provide optimal energy management, maximum efficiency, longer backup times and increased ease of use for homeowners.

We expect to continue to expand our residential storage solutions to cover more applications, improve battery management, efficiency and integration with energy management systems.

In 2024 we accelerated the development of our next-generation residential battery for single-phase and three-phase systems, which is planned to be launched sometime in 2025.

Smart Energy Management.

We are developing new features and capabilities for the smart energy management solutions, which are constantly evolving.

For instance, our SolarEdge Home Local Controller, will enable the homeowner to run and manage their most energy-intensive devices on excess solar energy.

We are also introducing smart energy management and fleet management to the commercial segment.

We also plan on expanding the availability of our smart energy products, including smart energy management devices, to new geographies and use cases.

New Products or Product Categories.

We continuously evaluate opportunities to expand our product offerings and services to our customers.

We may from time to time develop new products or services that are a natural extension of our existing business, or may engage in acquisitions

of businesses or product lines with the potential to strengthen our market position, enable us to enter attractive markets, expand our

technological capabilities, or provide synergistic opportunities.

and Marketing Strategy

solar business strategy is to focus on penetrating new geographic regions and increasing our market share.

More specifically, we focus

on markets where electricity prices, irradiance and government policies make solar PV installations economically viable.

Our solar products

have been installed in over 140 countries.

our sales and marketing efforts to the largest distributors, electrical equipment wholesalers, EPC contractors and installers in each

of the countries where we operate.

Our products are carried and actively sold by most of the top solar PV distributors as well as the

largest electrical distribution companies.

As of December 31, 2023, based on the number of installer accounts on our monitoring portal,

over 65,000 installers around the world have installed SolarEdge solar PV systems.

Additionally,

as further detailed below, we have a number of programs focused on educating installers and other industry professionals about our technology,

and we use a combination of road shows, webinars, and partner trainings to educate them how best to design, sell, and implement our technology

in their projects.

a significant portion of our revenues from key solar distributors, electrical equipment wholesalers and large installers in the U.S.

In 2023, two of our customers, Memodo GmbH and Krannich Solar GmbH & Co.

KG, represented 24.0% of our revenues.

our other customers accounted for more than ten percent of our revenues in the year ended December 31, 2023.

and Customer Support

our installer base a comprehensive package of customer support and training services which include pre-sales support, ongoing trainings,

and technical support before, during, and after installation.

We also provide customized support programs to large installers and distributors

to help prioritize and track support issues, thereby enabling short cycle times for issue resolution.

we revamped our first level certification, SolarEdge Fundamentals Training, a comprehensive training course for installers, with up-to-date

installation methodologies and practices.

We may from time to time develop new products or services that are a natural extension of our existing business, or may engage in acquisitions of businesses or product lines with the potential to strengthen our market position, enable us to enter attractive markets, expand our technological capabilities, or provide synergistic opportunities.

Sales and Marketing Strategy

Our solar business strategy is to focus on penetrating new geographic regions and increasing our market share.

More specifically, we focus on markets where electricity prices, irradiance and government policies make solar PV installations economically viable.

Our solar products have been installed in over 145 countries.

We target our sales and marketing efforts to the largest distributors, electrical equipment wholesalers, EPC contractors and installers in each of the countries where we operate.

Our products are carried and actively sold by most of the top solar PV distributors as well as the largest electrical distribution companies.

As of December 31, 2024, based on the number of installer accounts on our monitoring portal, over 74,000 installers around the world have installed SolarEdge solar PV systems.

Additionally, as further detailed below, we have launched several programs focused on educating installers and other industry professionals about our technology, and we use a combination of road shows, webinars, and partner trainings to teach them how to best design, sell, and implement our technology in their projects.

Our Customers

We derive a significant portion of our revenues from key solar distributors, electrical equipment wholesalers and large installers in the U.S.

and worldwide.

In 2024, one of our customers, CED group, represented 12.9% of our revenues.

None of our other customers accounted for more than ten percent of our revenues in the year ended December 31, 2024.

Training and Customer Support

We offer our installer base a comprehensive package of customer support and training services which include pre-sales support, ongoing trainings, and technical support before, during, and after installation.

We also provide customized support programs to large installers and distributors to help prioritize and track support issues, thereby enabling short cycle times for issue resolution.

During 2024, our training portal (Edge Academy) hosted over 225,000 learners.

Additionally,

in 2023, we enhanced our installer’s performance enablement by adding over 50 product-specific courses, as well as increasing accessibility

by creating a professional installation toolkit.

During 2024, over 14,000 installers completed our certification programs.

to the above, we support our commercial system customers with design consulting throughout their sales process and installation.

technical support organization includes local expert teams, tech centers, an online service portal and live chat service.

Our toll-free

call and live chat centers are open Monday through Friday at least from 9:00 a.m.

In addition to the above, we support our commercial system customers with design consulting throughout their sales process and installation.

Our technical support organization includes local expert teams, tech centers, an online service portal and live chat service.

Our toll-free call and live chat centers are open Monday through Friday at least from 9:00 a.m.

in every region in which we sell our products.

In addition, customers can open and track support cases 24/7 utilizing our online portal.

All support cases are monitored via a customer

relationship management system in order to provide service, track closure of all customer issues and further improve our customer service.

All support cases are monitored via a customer relationship management system in order to provide service, track closure of all customer issues and further improve our customer service.

Our call centers have access to our cloud-based monitoring platform database, which enables real-time remote diagnostics.

service and satisfaction continues to be a key component of our business offering and we consider it integral to our continued success.

We maintain high levels of customer engagement through our call centers in California, Australia, Japan, Israel, India, Bulgaria, Brazil,

Taiwan, Thailand, South Africa, Philippines and Poland.

In addition to our call centers, we have field service engineers located in the

geographies where we are active, and support our customers with commissioning of large projects, introduction of new technologies and

features and on-the-job training of new installers.

As of December 31, 2023, our customer support and training organization consisted

of 659 employees worldwide.

drawn on our expertise in the fields of power electronics, magnetic design, mechanical and heat dissipation, control loops and algorithms,

power line communications and lithium-ion battery technology to design and develop what we believe to be the most advanced commercial

solutions for harvesting power from solar PV, storage and energy management solutions for residential and commercial applications.

technologies are explained in more detail below.

of our growth strategy, we have acquired companies that have technologies that can leverage our expertise in power electronics and power

optimization.

By combining acquired resources with our current research and development teams, we are expanding our activities into other

areas such as energy IoT and energy storage systems.

Power Optimizers are DC/DC step up/step down (buck boost) converters designed and developed to operate in harsh outdoor environments at

very high conversion efficiency.

Our Power Optimizers include proprietary power electronics and control loops customized to efficiently

convert power from the PV module to the inverter.

factor in the performance of our Power Optimizer is determined by the digital control algorithms and closed-loop control mechanism.

Power Optimizer’s control is built into our advanced ASIC which is responsible for all critical digital control functions of the

power optimizer, including detailed power analysis, digital real-time control of the power conversion subsystem, power line communications

and networking.

Since each Power Optimizer handles the power and voltage of either a single or two modules, we are able to reach a high

degree of semiconductor integration by leveraging low-cost silicon in standard semiconductor packages.

As a result, much of the Power

Optimizer functionality can be integrated into a standard ASIC instead of requiring discrete electronic components, resulting in lower

costs and higher reliability.

ASIC performs the critical power analysis and power conversion control functions of the Power Optimizer.

The power analysis functions

process the state and working parameters at the Power Optimizer’s input and output and, together with advanced digital control and

state machine logic, control the power conversion function.

In addition, our digital control system uses technology that allows the solar

PV installation to anticipate and adapt to changing operating conditions, and to protect itself against system anomalies.

Power Optimizer in the array is connected to the inverter by a power line communications networking link.

Our power line communications

link uses a proprietary networking technology that we developed, utilizing the existing DC wiring between the Power Optimizers and the

inverter to transmit and receive data between these devices using scalable technology supporting a wide range of installation sizes, from

small residential to large commercial installations.

of our inverters are designed for single-stage DC/AC conversion.

Using our inverter in combination with the Power Optimizers allows the

inverter control loop to maintain a regulated DC voltage level at its input, thereby enabling the inclusion of long, uneven, and multi-faceted

strings of solar modules while also enabling custom, cost efficient, and reliable inverter design and component selection.

power components, as well as the main magnetic components for our inverters, can then be optimized for DC/AC inversion at high efficiency.

inverters’ digital control algorithms are implemented using programmable digital signal processors which allow for flexibility and

adaptation of control loops for various grids and for the requirements and standards of different grid operators across geographies.

have already implemented the control mechanisms necessary to support advanced grid codes and standards that are required to support high

penetration of solar energy into utility grids.

We continue to develop and manufacture our own DSP (ASIC) in our inverters which enables

us to improve the performance of our control loops, increase our cost savings and be less dependent on third party suppliers in our manufacturing

Customer service and satisfaction continues to be a key component of our business offering and we consider it integral to our continued success.

We maintain high levels of customer engagement through our call centers in California, Australia, Japan, Israel, India, Bulgaria, Brazil, Taiwan, Thailand, South Africa, Philippines and Poland.

In addition to our call centers, we have field service engineers located in the geographies where we are active, and support our customers with commissioning of large projects, introduction of new technologies and features and on-the-job training of new installers.

As of December 31, 2024, our customer support and training organization consisted of 662 employees worldwide.

Our Technology

We have drawn on our expertise in the fields of power electronics, analog and digital electronics, magnetic design, mechanical and heat dissipation, control, and algorithms, power line communications and lithium-ion battery technology to design and develop what we believe to be the most advanced commercial solutions for harvesting power from solar PV, storage and energy management solutions for residential and commercial applications.

These technologies are explained in greater detail below.

As part of our growth strategy, we have acquired companies that have technologies that can leverage our expertise in power electronics and power optimization.

By combining acquired resources with our current research and development teams, we are expanding our activities into other areas such as energy IoT, EV charging optimization, and energy storage systems.

Power Optimizers

Our Power Optimizers are DC/DC step up/step down ("buck+boost") converters designed and developed to operate in harsh outdoor environments at very high conversion efficiency.

Our Power Optimizers include proprietary power electronics and control loops customized to efficiently convert power from the PV module to the inverter.

A key factor in the performance of our Power Optimizer is determined by the digital control algorithms and closed-loop control mechanism.

The Power Optimizer’s control is built into our advanced ASIC which is responsible for all digital control functions of the power optimizer, including detailed power analysis, digital real-time control of the power conversion subsystem, power line communications and networking.

Since each Power Optimizer handles the power and voltage of either a single module or two modules, we are able to reach a high degree of semiconductor integration by leveraging low-cost silicon in standard semiconductor packages.

As a result, much of the Power Optimizer functionality can be integrated into a standard ASIC instead of requiring discrete electronic components, resulting in lower costs and higher reliability.

The ASIC performs the critical power analysis and power conversion control functions of the Power Optimizer.

The power analysis functions process the state and working parameters at the Power Optimizer’s input and output and, together with advanced digital control and state machine logic, control the power conversion function.

In addition, our digital control system uses technology that allows the solar PV installation to anticipate and adapt to changing operating conditions, and to protect itself against system anomalies.

Each Power Optimizer in the array is connected to the inverter by a power line communications networking link.

Our power line communications link uses a proprietary networking technology that we developed, utilizing the existing DC wiring between the Power Optimizers and the inverter to transmit and receive data between these devices using scalable technology supporting a wide range of installation sizes, from small residential to large commercial installations.

Most of our inverters are designed for single-stage DC/AC conversion.

Using our inverter in combination with the Power Optimizers allows the inverter control loop to maintain a regulated DC voltage level at its input, thereby enabling the inclusion of long, uneven, and multi-faceted strings of solar modules while also enabling custom, cost efficient, and reliable inverter design and component selection.

All of the power components, as well as the main magnetic components for our inverters, can then be optimized for highly efficient DC/AC inversion.

Our inverters’ digital control algorithms are implemented using programmable digital signal processors which allow for flexibility and the adaptation of control loops for various grids and for the requirements and standards of different grid operators across geographies.

We have already implemented the control mechanisms necessary to support advanced grid codes and standards that are required to support high penetration of solar energy into utility grids.

We continue to develop and manufacture our own DSP (ASIC) in our inverters which enables us to improve the performance of our control loops, increase our cost savings and reduce dependence on third party suppliers.

The DSP (ASIC) performs the critical power analysis and power conversion control functions of the inverter.

The power analysis

functions process the state and working parameters at the power inverter’s input and output, and together with advanced digital

control and state machine logic controls the power conversion function.

In addition, our digital control system uses technology that allows

the inverter to anticipate and adapt to changing operating conditions, and to protect itself against system anomalies as well as comply

with applicable regulations in the different regions in which we operate.

DSP (ASIC) is also in charge of the power line communications ("PLC") networking link towards the optimizers.

Our PLC uses a proprietary

networking technology that we developed, utilizing the existing DC wiring between the Power Optimizers and the inverter to transmit and

receive data between these devices.

developed and continue to develop in-house design and manufacturing capabilities for several major passive components, such as magnetic

components, in order to decrease dependence on suppliers, improve component performance, reduce costs and have better control over our

production processes.

for PV applications

we released our first lithium-ion residential batteries for sale in the U.S.

The power analysis functions process the state and working parameters at the power inverter’s input and output, and together with advanced digital control and state machine logic controls the power conversion function.

Additionally, our digital control system uses technology that is designed to allow the inverter to anticipate and adapt to changing operating conditions, and to protect itself against system anomalies as well as comply with applicable regulations in the different regions in which we operate.

Our DSP (ASIC) is also in charge of our PLC networking link between the inverter and the optimizers.

Our PLC uses a proprietary networking technology that we developed, utilizing the existing DC wiring between the Power Optimizers and the inverter to transmit and receive data and commands between these devices.

We have developed and continue to develop in-house design and manufacturing capabilities for several major passive components, such as magnetic components, in order to decrease dependence on suppliers, improve component performance, reduce costs and have better control over our production processes.

Batteries for PV applications

Residential Market.

In 2021, we released our first lithium-ion residential batteries for sale in the U.S.

and Europe through our solar distribution channels.

Our batteries

are composed of lithium cells, a battery management system, or BMS, bi-directional DC/DC high efficiency converter that allows charge

and discharge of the battery, as well as user interface.

Our DC/DC converter uses digital control algorithms, which are implemented using

a programmable digital signal processor.

Our power products, inverter, Power Optimizers and battery are connected to the same DC bus,

allowing the battery to be directly charged by the DC current generated by the Power Optimizers and bypassing the AC conversion, thereby

reducing the rounding efficiency of PV generated power towards the AC loads.

DC-coupled battery is designed to connect with our inverters, allowing up to three batteries per inverter.

Our batteries can be connected

to our cloud‑based monitoring platform, reporting information on the battery status, solar production, and self-consumption data.

Our batteries are composed of lithium cells, a Battery Management System (BMS), bi-directional DC/DC high efficiency converter that facilitates the charging and discharging of the battery,and a user interface.

Our DC/DC converter uses digital control algorithms, which are implemented using a programmable digital signal processor.

Our power products, inverter, Power Optimizers and battery are connected to the same DC bus, allowing the battery to be directly charged by the DC current generated by the Power Optimizers and bypassing the AC conversion, thereby reducing the round-trip efficiency of PV generated power provided from batteries the AC loads.

Our DC-coupled battery is designed to connect with our inverters, allowing up to three batteries per inverter.

Our batteries can be connected to our cloud‑based monitoring platform, reporting information on the battery status, solar production, and self-consumption data.

Commercial market.

Our 102.4kWh-rated CSS-OD battery solution was released in 2024 for commercial PV system owners.

Designed for indoor and outdoor use, including operation in harsh environments, it is delivered in a pre-assembled enclosure, with an integrated 50kW inverter, to minimize onsite work and reduce installation faults.

The CSS-OD is an AC-coupled battery, supporting connection of up to two CSS-OD batteries for each SolarEdge commercial inverter, scaling up to MWh-size sites.

The CSS-OD’s, built-in safety technology, is designed to address potential risks at four distinct levels, creating a multi-layered safety net that safeguards both the system and the site.

At the most granular level, the cell and energy module protection focus on preventing risks at the core of the battery.

Each of the 20 energy modules comes with its own battery management unit (BMU) that continuously measures voltage and temperature for performance and safety optimization.

At the cluster-level, the CSS-OD has multiple safety mechanisms including fire, smoke, and water sensors, to monitor and regulate the behavior of groups of energy modules.

The cabinet layer provides physical and environmental protection for the battery system as a whole and software-driven safety measures are provided at the application level, including real-time alerts and diagnostics.

The CSS-OD is designed to protect internal components with a built-in battery enclosure HVAC system, module-level fire detection mechanism and multiple electrical safeguards such as Dual DC Relays and DC Breakers (MCCB) that work to isolate faults in connected energy modules.

The CSS-OD is connected to our SolarEdge ONE for the C&I platform, for cloud-based O&M and monitoring.

It presents operational status and alerts from cell to cabinet level and consolidates data and alerts for both the PV system and CSS-OD battery.

Manufacturing

designed our manufacturing processes to produce high quality products at competitive costs.

We have designed our manufacturing processes to produce high quality products at competitive costs.

The strategy is threefold:

outsource, automate,

and localize.

We currently contract to have our solar products manufactured by two of the world’s leading global electronics manufacturing

service providers, Jabil Circuit, Inc.

outsource, automate, and localize.

We currently contract to have our solar products manufactured by two of the world’s leading global electronics manufacturing service providers, Jabil Circuit, Inc.

(“Jabil”) and Flex Ltd.

By using contract manufacturers, we are

able to access advanced manufacturing equipment, processes, skills and capacity on a relatively “asset light” budget while

remaining flexible in our manufacturing operations and are able to enjoy the CM’s global reach and access to different manufacturing

Our contract manufacturers are responsible for funding some of the the capital expenses incurred in connection with the manufacture

of our products, except with regard to some of the automated optimizer assembly lines, our proprietary end-of-line testing equipment and

other specific manufacturing equipment utilized in assembling our products or sub-components which are financed and owned by the Company.

We expect to continue this funding arrangement in the future, with respect to any expansions to such existing lines save for circumstances

where the direct purchase by us of non-specific manufacturing equipment will result in a substantial reduction in costs in which case

we will consider financing such non-specific manufacturing equipment ourselves.

Further, contracting with global providers, such as Jabil

and Flex, gives us added flexibility to enjoy such manufacturers' global reach and access to different regions such as China and Vietnam,

where we are able to manufacture closer to target markets in Asia, as well as Hungary, closer to target markets in Europe, in each case,

potentially increasing responsiveness to customers while reducing costs and delivery times.

In light of recent Inflation Reduction Act

legislation in the United States which incentivizes the local manufacturing of renewable energy products by providing benefits to installers

for the purchase and installation of US-manufactured products, as well as by incentivizing manufacturers of such products domestically,

we have begun manufacturing inverters in Texas and are currently establishing additional manufacturing capabilities in Florida for optimizers

and inverters.

With the ramp-up of these new sites and due to a decrease in demand for our products, we have reduced capacity in our manufacturing

site in China and discontinued manufacturing of our products in Mexico.

third quarter of 2020, we began commercial shipments from our own manufacturing facility in the North of Israel, “Sella 1".

proximity of Sella 1 to our R&D team and labs enables us to accelerate new product development cycles as well as define equipment

and manufacturing processes of newly developed products which can then be adopted by our contract manufacturers worldwide.

2023, we expanded the manufacturing portfolio available for manufacturing in Sella 1.

2022, we opened our own manufacturing facility, “Sella 2”, a 2GWh Li-Ion cell factory in Korea.

“Sella 2” began

producing and shipping cells at the end of 2022 and is expected to gradually increase manufacturing capacity during 2024, slightly behind

the original plan.

We also have an additional smaller lithium-ion cells and batteries facility in South Korea that has the capacity to

manufacture up to 150 MWh per annum.

developed propriety automated assembly lines for the manufacturing of our power optimizers.

These assembly lines, currently operating

in all of our manufacturing facilities, enable the manufacturing of more than 6,000 optimizers per manufacturing line per day.

resources in additional automated assembly lines as well as in automated machinery for subassembly and self-manufacturing of certain components

used in our products, and we own and are responsible for funding all of the capital expenses related thereto.

The current and expected

capital expenses associated with these automated assembly lines and other machinery is funded out of our cash flows.

our raw materials through various component manufacturers and invest resources in continued cost-reduction efforts as well as verifying

second and third sources so as to limit dependence on sole suppliers.

of the Company’s decision to discontinue its LCV e-Mobility activity, we began ramping down manufacturing of e-Mobility components

in our facility in Umbertide, Italy, towards the end of 2023.

We are still using this facility for Automation Machines, refurbishment

of batteries and support of the e-Mobility project.

and Quality Control

Power Optimizers are connected to each PV module by installers, and are designed to be as reliable as the PV module itself and capable

of withstanding the same operating and environmental conditions.

reliability methodology includes a multi-level plan with design analysis, sub-system testing of critical components by Accelerated Life

Testing, and integrative testing of design prototypes by Highly Accelerated Life Testing and large sample groups.

As part of our reliability

efforts, we subject components to industry standard conditions and tests including in accelerated life chambers that simulate burn-in,

thermal cycling, damp-heat, and other stresses.

By using contract manufacturers, we are able to access advanced manufacturing equipment, processes, skills and capacity on a relatively “asset light” budget while remaining flexible in our manufacturing operations and are able to enjoy the CM’s global reach and access to different manufacturing regions.

Our contract manufacturers are responsible for funding some of the capital expenses incurred in connection with the manufacture of our products, except with regard to some of the automated optimizer assembly lines, our proprietary end-of-line testing equipment and other specific manufacturing equipment utilized in assembling our products or sub-components which are financed and owned by the Company.

We expect to continue this funding arrangement in the future, with respect to any expansions to such existing lines save for circumstances where the direct purchase by us of non-specific manufacturing equipment will result in a substantial reduction in costs in which case we will consider financing such non-specific manufacturing equipment ourselves.

In light of recent Inflation Reduction Act legislation in the United States which incentivizes the local manufacturing of renewable energy products by providing benefits to installers for the purchase and installation of US-manufactured products, as well as by incentivizing manufacturers of such products domestically, we are manufacturing single phase inverters in Texas, are currently increasing manufacturing of three phase inverters and optimizers in Florida, and are also ramping manufacturing of our residential batteries in Utah.

With the ramp-up of these new sites and as part of an effort to centralize and improve operational activity, we have discontinued manufacturing in China, Mexico, and Hungary.

We continue to maintain manufacturing capabilities in Vietnam with a third party manufacturer.

Our own manufacturing facility in the North of Israel, is called “Sella 1".

The proximity of Sella 1 to our R&D team and labs enables us to accelerate new product development cycles as well as define equipment and manufacturing processes of newly developed products which can then be adopted by our contract manufacturers worldwide.

SolarEdge is mindful of the transformative impact of automation and AI in manufacturing efficiency and product innovation.

We are continuously striving to enhance the capabilities of all of our products through cutting-edge advancements in production processes.

One significant focus that we have taken on is automating the manufacture of our inverters, aiming to replicate the significant advantages achieved in the automated manufacturing line of our optimizers.

We have developed propriety automated assembly lines for the manufacturing of our power optimizers.

These assembly lines, currently operating in all of our manufacturing facilities, enable the manufacturing of more than 6,000 optimizers per manufacturing line per day.

We invest resources in additional automated assembly lines as well as in automated machinery for subassembly and self-manufacturing of certain components used in our products, and we own and are responsible for funding all of the capital expenses related thereto.

The current and expected capital expenses associated with these automated assembly lines and other machinery is funded out of our cash flows.

We source our raw materials through various component manufacturers and invest resources in continued cost-reduction efforts as well as verifying second and third sources so as to limit dependence on sole suppliers.

Reliability and Quality Control

Our Power Optimizers are connected to each PV module by installers, designed to be as reliable as the PV module itself and capable of withstanding the same operating and environmental conditions.

Our reliability methodology includes a multi-level plan with design analysis, sub-system testing of critical components by Accelerated Life Testing, and integrative testing of design prototypes by Highly Accelerated Life Testing and large sample groups.

As part of our reliability efforts, we subject components to industry standard conditions and tests including in accelerated life chambers that simulate burn-in, thermal cycling, damp-heat, and other stresses at large sample size groups.

For validation purposes, finished products are tested by simulating accelerated aging through the use of Thermal Cycling, Damp Heat, and High Temperature Endurance.

Specific additional tests have been developed to assess design changes' impact on reliability.

We also conduct out of box audits (OBA) on our finished products.

In addition, online

reliability tests (ORT) are conducted on our optimizers and we test complete products in stress tests and in the field.

Our rigorous testing

processes have helped us to develop highly reliable products.

to verify the quality of each of our products when it leaves the manufacturing plant, each component, sub-assembly, and final product

are tested multiple times during production.

These tests include Automatic Optical Inspection, In-Circuit Testing, Board-Functional Testing,

Safety Testing, and Integrative Stress Testing.

We employ a serial number-driven manufacturing process auditing and traceability system

that allows us to control production line activities, verify correct manufacturing processes and to achieve item-specific traceability.

part of our quality and reliability approach, failed products from the field are returned and subjected to root cause analysis, the results

of which are used to improve our product and manufacturing processes and design and further reduce our field failure rate.

In addition, online reliability tests (ORT) are conducted on our optimizers and we test complete products in stress tests and in the field.

Our rigorous testing processes have helped us to develop highly reliable products.

In order to verify the quality of each of our products when it leaves the manufacturing plant, each component, sub-assembly, and final product are tested multiple times during production.

These tests include Automatic Optical Inspection, In-Circuit Testing, Board-Functional Testing, Safety Testing, and Integrative Stress Testing.

We employ a serial number-driven manufacturing process auditing and traceability system that allows us to control production line activities, verify correct manufacturing processes and to achieve item-specific traceability.

As a part of our quality and reliability approach, failed products from the field are returned and subjected to root cause analysis, the results of which are used to improve our product and manufacturing processes and design and further reduce our field failure rate.

Certifications

products and systems comply with the applicable regulatory requirements of the jurisdictions in which they are sold as well as all other

major markets around the world.

Our products and systems comply with the applicable regulatory requirements of the jurisdictions in which they are sold as well as all other major markets around the world.

These include safety regulations, electromagnetic compatibility standards and grid compliance.

and Development

substantial resources to research and development with the objective of developing new products and systems, adding new features and reducing

unit costs of our products and systems.

Our development strategy is to identify software and hardware features, products, and systems

that reduce the cost and improve the effectiveness of our solutions for our customers.

We measure the effectiveness of our research and

development by metrics including product unit cost, efficiency, reliability, power output, and ease of use.

a strong research and development team with wide ranging experience in power electronics, semiconductors, power line communications and

networking, chemical, mechanical and software engineering.

In addition, many members of our research and development team have expertise

in solar technologies.

Research and Development

We devote substantial resources to research and development with the objective of developing new products and systems, adding new features and reducing unit costs of our products and systems.

Our development strategy is to identify software and hardware features, products, and systems that reduce the cost and improve the effectiveness of our solutions for our customers.

We measure the effectiveness of our research and development by metrics including product unit cost, efficiency, reliability, power output, and ease of use.

We have a strong research and development team with wide ranging experience in power electronics, semiconductors, power line communications and networking, chemical, mechanical and software engineering.

In addition, many members of our research and development team have expertise in solar technologies.

As of December 31, 2024 our research and development organization had a headcount of 1,171 employees.

success of our business depends, in part, on our ability to maintain and protect our proprietary technologies, information, processes,

and know-how.

Intellectual Property

The success of our business depends, in part, on our ability to maintain and protect our proprietary technologies, information, processes, and know-how.

We rely primarily on patent, trademark, copyright and trade secrets laws in the U.S.

and similar laws in other countries,

confidentiality agreements and procedures and other contractual arrangements to protect our technology.

As of December 31, 2023, SolarEdge

had 602 issued patents worldwide and 528 patent applications pending for examination.

A majority of our patents relate to DC power optimization

and DC to AC conversion for alternative energy power systems, power system monitoring and control, battery technology and management systems.

and similar laws in other countries, confidentiality agreements and procedures and other contractual arrangements to protect our technology.

As of December 31, 2024, SolarEdge had 595 issued patents worldwide and 393 patent applications pending for examination.

A majority of our patents relate to DC power optimization and DC to AC conversion for alternative energy power systems, power system monitoring and control, battery technology and management systems.

Our issued patents are scheduled to expire between 2025 and 2044.

We continually

assess opportunities to seek patent protection for those aspects of our technology, designs, and methodologies and processes that we believe

provide significant competitive advantages.

on trade secret protection and confidentiality agreements to safeguard our interests with respect to proprietary know-how that is not

patentable and processes for which patents are difficult to enforce.

We believe that many elements of our manufacturing processes involve

proprietary know-how, technology, or data that are not covered by patents or patent applications, including technical processes, test

equipment designs, algorithms, and procedures.

of our research and development personnel are required to enter into confidentiality and proprietary information agreements with us.

agreements address intellectual property protection issues and require our employees to assign to us all of the inventions, designs, and

technologies they develop during the course of employment with us.

customers and business partners are required to enter into confidentiality agreements before we disclose any sensitive aspects of our

technology or business plans.

markets for our solar products are competitive, and we compete with manufacturers of traditional inverters, as well as manufacturers of

other MLPE systems.

We continually assess opportunities to seek patent protection for those aspects of our technology, designs, and methodologies and processes that we believe provide significant competitive advantages.

We rely on trade secret protection and confidentiality agreements to safeguard our interests with respect to proprietary know-how that is not patentable and processes for which patents are difficult to enforce.

We believe that many elements of our manufacturing processes involve proprietary know-how, technology, or data that are not covered by patents or patent applications, including technical processes, test equipment designs, algorithms, and procedures.

All of our research and development personnel are required to enter into confidentiality and proprietary information agreements with us.

These agreements address intellectual property protection issues and require our employees to assign to us all of the inventions, designs, and technologies they develop during the course of employment with us.

Our customers and business partners are required to enter into confidentiality agreements before we disclose any sensitive aspects of our technology or business plans.

The markets for our solar products are competitive, and we compete with manufacturers of traditional inverters, as well as manufacturers of other MLPE systems.

The principal areas in which we compete with other companies include:

4 unchanged sentences

• breadth of product line;

• technological expertise;

• brand recognition;

• local sales and distribution capabilities;

compliance with applicable certifications and

• compliance with applicable certifications and grid codes;

• product safety features;

• size and financial stability of operations;

• size of installed base.

market trends show an increased focus on safety features in rooftop installations, and the emergence of standards that are evolving to

address such concerns.

In particular, the arc fault detection and interruption (AFDI) and rapid shutdown (RSD) standards in the US market,

have led to the introduction of module-level rapid-shutdown devices from our competitors.

We believe the existence of rapid shutdown capabilities

built into our Power Optimizers positions us well in this regard, and serves as a competitive advantage.

Additionally, we have seen PV

module manufacturers introduce larger PV modules with higher power levels reaching over 600W.

This market trend, which comes as a result

of PV cell manufacturers introducing larger cell sizes such as M10 and M12 as well as different module build configurations, leads to

market interest in higher power rating Power Optimizers, micro inverters, and other MLPE devices.

The increasing demand for storage and

battery solutions is an additional noteworthy market trend which is expected to increase the attachment rate of storage to PV installations

in the coming years.

DC optimized inverter system competes principally with products from traditional inverter manufacturers, such as SMA Solar Technology

AG, Sungrow Power Supply Co., Ltd.

Recent market trends show an increased focus on safety features in rooftop installations, and the emergence of standards that are evolving to address such concerns.

In particular, the arc fault detection and interruption (AFDI) and rapid shutdown (RSD) standards in the US market, have led to the introduction of module-level rapid-shutdown devices from our competitors.

We believe the existence of rapid shutdown capabilities built into our Power Optimizers positions us well in this regard, and serves as a competitive advantage.

Additionally, we have seen PV module manufacturers introduce larger PV modules with higher power levels reaching over 600W.

This market trend, which comes as a result of PV cell manufacturers introducing larger cell sizes such as M10 and M12 as well as different module build configurations, leads to market interest in higher power rating Power Optimizers, micro inverters, and other MLPE devices.

The increasing demand for storage and battery solutions is an additional noteworthy market trend which is expected to increase the attachment rate of storage to PV installations in the coming years.

Our DC optimized inverter system competes principally with products from traditional inverter manufacturers, such as SMA Solar Technology AG, Sungrow Power Supply Co., Ltd.

and Huawei Technologies Co.

as well as from other Chinese inverter manufacturers.

American residential market, we compete with traditional inverter manufacturers such as Tesla Motors Inc., as well as microinverter manufacturers

such as Enphase Energy, Inc.

In the North American residential market, we compete with traditional string inverter manufacturers such as Tesla Inc., as well as microinverter manufacturers such as Enphase Energy, Inc.

In addition, there are several new entrants to the MLPE market, including low-cost Asian manufacturers.

believe that our DC optimized inverter system offers significant technology and cost advantages that reflect a competitive differentiation

over traditional inverter systems and microinverter technologies.

markets for our Energy Storage division products are competitive as well.

The competition ranges from other cell manufacturers, both of

Nickel Manganese Cobalt (NMC) and of Lithium Iron Phosphate (LFP), which are also vertically integrated and provide a partial or complete

storage system as well as from integrators that are acquiring cells from different vendors and assemble their own storage system.

competitors include global manufacturers such as LG Energy Solutions, Samsung SDI, CATL, BYD etc.

residential lithium-ion batteries for PV applications compete with global manufacturers of both lithium-ion and other residential battery

storage solutions such as Tesla, LG Energy solutions, BYD and Enphase Energy.

federal, state, and local government bodies as well as non-U.S.

government bodies, provide incentives to owners, end users, distributors,

and manufacturers of solar PV systems to promote solar electricity in the form of rebates, tax credits, lower VAT rate and other financial

incentives such as system performance payments, payments for renewable energy credits associated with renewable energy generation, and

exclusion of solar PV systems from property tax assessments.

The market for on grid applications, where solar power is used to supplement

a customer’s electricity purchased from the utility network or sold to a utility under tariff, often depends in large part on the

availability and size of these government subsidies and economic incentives, which vary from time to time by geographic market.

2022, the U.S.

government enacted the Inflation Reduction Act of 2022 (the “IRA”), which contains several provisions intended

to accelerate U.S.

manufacturing and adoption of clean energy such as solar, wind, hydrogen and electric vehicles and therefore is expected

to impact our business and operations.

Some of the applicable provisions in IRA that are expected to positively impact the market for

renewable energy include the extension of the investment tax credit (“ITC”) and the Production Tax Credit (“PTC") through

The IRA also further incentivizes residential and commercial solar customers and developers through the inclusion of a tax credit

for qualifying energy projects of up to 30%.

These provisions of the law are new and regulations and guidance concerning their implementation

are gradually being published by the U.S.

Treasury Department.

We continue to monitor the benefits that may be available to us.

45X of the IRA offers advanced manufacturing production tax credits, that incentivize the production of eligible components within the

United States.

To that end, we have established manufacturing capabilities in the United States in 2023 and announced additional capacity

expected during 2024.

extent that tax benefits or credits may be available to competing technology and not to our technology, our business could be adversely

disadvantaged.

Regulation and Import Tariffs

business activities are subject to numerous laws and regulations in the jurisdictions in which we operate.

Particularly, our exports and

imports are subject to complex trade and customs laws, tax requirements and tariffs set by governments through mutual agreements or unilateral

Countries duties, tariffs or other restrictions on our imports or adversely modify existing restrictions.

Changes in tax policies

or trade regulations, the disallowance of tax deductions on imported merchandise, or the imposition of new tariffs on imported products,

could have an adverse effect on our business and results of operations.

trade tensions between the United States and China have led to increased tariffs and trade restrictions, including tariffs applicable

to some of our products.

As of June 2019, the U.S.

trade representative (“USTR”) imposed import tariffs of 25% on a long list

of products imported from China, including inverters and power optimizers.

On January 15, 2020, the United States and China entered into

an initial trade deal, which preserves the initial tariffs from 2018 and indicates additional sanctions may be imposed if China breaches

the terms of the deal.

to mitigate the negative effect of increased tariffs, we increased our manufacturing capabilities at our Vietnam manufacturing facility.

We reached full manufacturing capacity in our manufacturing facility in Israel, Sella 1 .

In addition, as mentioned above, we established

manufacturing capabilities in the United States.

For the year ended December 31, 2023, the majority of our products being imported to

were manufactured in Mexico, Vietnam, Israel and Hungary and were therefore not subject to the aforementioned tariffs.

solar energy market is subject to seasonal and quarterly fluctuations affected by weather.

For example, during the winter months in Europe

and the northeastern U.S.

where the climate is particularly cold and snowy, it is typical to see a decline in PV installations and this

decline can impact the timing of orders for our products.

Responsible and Transparent Business Practices

2023, we continued making progress in our Environmental, Social and Governance ("ESG") performance and disclosure.

Our ESG practices are

guided by our social purpose:

“To power the future of energy so we can all enjoy better living and a cleaner, greener future”

and our social mission:

“Shaping the future of sustainable energy production, energy storage and e-mobility through innovation”.

We have crafted a comprehensive sustainability strategy with 2025 targets in several areas.

Our fifth annual Sustainability Report, published

in 2023, was prepared in alignment with leading global sustainability disclosure standards, GRI (Global Reporting Initiative) and SASB

(Sustainability Accounting Standards Board).

We believe that our DC optimized inverter system offers significant technology and cost advantages that reflect a competitive differentiation over traditional inverter systems and microinverter technologies.

Our residential lithium-ion batteries for PV applications compete with global manufacturers of both lithium-ion and other residential battery storage solutions such as Tesla, LG Energy solutions Ltd., BYD Company Limited, and Enphase Energy.

Government Incentives

federal, state, and local government laws, regulations, and bodies as well as non-U.S.

government bodies, provide incentives to owners, end users, distributors, and manufacturers of solar PV and BESS systems to promote solar electricity in the form of rebates, tax credits, lower VAT rate and other financial incentives such as system performance payments, payments for renewable energy credits associated with renewable energy generation, and exclusion of solar PV systems from property tax assessments.

The market for on grid applications, where solar power is used to supplement a customer’s electricity purchased from the utility network or sold to a utility under tariff, often depends in large part on the availability and size of these government subsidies and economic incentives, which vary from time to time by geographic market.

In August 2022, the U.S.

government enacted the Inflation Reduction Act of 2022 (the “IRA”), which contains several provisions intended to accelerate U.S.

manufacturing and adoption of clean energy such as solar, wind, hydrogen and electric vehicles and therefore had positive impact on our business and operations and overall US solar market.

Some of the applicable provisions in IRA that are positively impacting the market for renewable energy include the extension of 48E, the tech-neutral investment tax credit (“ITC”), and 45Y, the tech-neutral Production Tax Credit (“PTC"), through at least 2032.

These credits are subject to a phase-out when annual greenhouse emissions from the production of electricity in the U.S.

drop to 25% of their 2022 levels.

The IRA includes incentives for residential and commercial solar customers and developers through the inclusion of ITCs for qualifying energy projects of up to 30% with a potential to gain further bonus credits such as through the utilization of Domestic Content.

Because these provisions both extend existing law and create new law, guidance concerning their implementation continues to be published by the U.S.

Treasury Department and the Internal Revenue Service.

We continue to monitor the implementation process and are monetizing the benefits that are available to us.

For example, Section 45X of the IRA offers advanced manufacturing production tax credits ("AMPTCs"), that incentivize the production of eligible components within the United States.

To that end, we established manufacturing capabilities in the United States starting in 2023.

administration entered office on January 20, 2025, and to the extent that tax benefits or credits may be impacted through new regulation or by new law passed by Congress, our business could be adversely disadvantaged.

We continue to monitor the benefits that may be available to us, such as the availability of tax credits for domestic manufacturers.

Trade Regulation and Import Tariffs

Our business activities are subject to numerous laws and regulations in the jurisdictions in which we operate.

Particularly, our exports and imports are subject to complex trade and customs laws, tax requirements and tariffs set by governments through mutual agreements or unilateral actions.

Countries duties, tariffs or other restrictions on our imports could adversely impact our business.

Changes in tax policies or trade regulations, the disallowance of tax deductions on imported merchandise, or the imposition of new tariffs on imported products, could have an adverse effect on our business and results of operations.

Escalating trade tensions between the United States and China have led to increased tariffs and trade restrictions, including tariffs applicable to some solar products.

As of September 19, 2024, the U.S.

trade representative (“USTR”) announced the final Section 301 import tariffs ranging from 25% to 50% on a long list of products imported from China, including solar cells, semiconductors, EVs, and Lithium-ion batteries.

administration has announced proposed tariffs on products manufactured abroad that are intended to be sold in the U.S.

We continue to monitor how this situation could affect our global business operations and manufacturing in various jurisdictions.

To the extent that our products or imported components could be subject to U.S.

tariffs, our business could be adversely disadvantaged.

administration has proposed imposed tariffs on the import of certain goods from China which, if implemented could disadvantage some of our competitors.

The solar energy market is subject to seasonal and quarterly fluctuations affected by weather.

For example, during the winter months in Europe and the northeastern U.S.

where the climate is particularly cold and snowy, it is typical to see a decline in PV installations and this decline can impact the timing of orders for our products.

Sustainable, Responsible and Transparent Business Practices

During 2024, we continued making progress in our Environmental, Social and Governance ("ESG") performance and disclosure.

Our ESG practices are guided by our mission of accelerating the move to a low-carbon world, powered by a decentralized, distributed, interconnected energy network, where electricity is generated, stored, managed and used in the most optimal manner.

We have crafted a comprehensive sustainability strategy with qualitative and quantitative targets spanning various ESG matters.

Our sixth annual Sustainability Report, published in 2024, was prepared in reference to leading global sustainability disclosure standards, GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board).

Our sustainability strategy includes the following pillars:

Powering Clean

Accelerating the uptake of clean energy, delivering new smart energy, innovative solutions and improving the lifecycle

impacts of our products.

As a business founded upon the acceleration of clean energy, we strive to reduce our climate impact by minimizing

GHG (greenhouse gas) emissions and transitioning to renewable electricity usage in our facilities.

We have completed a lifecycle analysis

for three of our key products, examining the carbon footprint of all product life stages and following the examination of the results

of such analysis were able to highlight possible reduction opportunities.

We have taken significant efforts to reduce energy and resource

consumption in our sites, reducing related GHG emissions.

We continue to act to recycle our e-waste.

We also act to minimize landfill

for all waste types, and in 2022, a total of 88% of all waste at our owned and operated sites was either recycled or recovered to energy

(2023 figures are currently in examination and will be published in our upcoming sustainability report).

• Powering Clean Energy :

Accelerating the uptake of clean energy, delivering new smart energy, innovative solutions and improving the lifecycle impacts of our products.

As a business founded upon the acceleration of clean energy, we strive to reduce our climate impact by minimizing GHG (greenhouse gas) emissions and increasing renewable electricity usage in our facilities.

• Powering People:

Maintaining leading responsible employment practices, upholding human rights and investing in communities.

In 2023, we continued to expand

our workforce to support SolarEdge’s business growth, and maintained responsible employment practices, including an enhanced focus

on safety and on employee growth and development.

We set quantitative targets and formulated multi-year programs to enhance gender equality

in accordance with equal opportunities laws within our workforce and to strengthen its inclusiveness, including by reaching over 150 women

in management roles.

(see further details in "Human Capital" below).

Also in 2023, we continued to enhance our community engagement program.

Our updated program focuses on the advancement of renewable energy for environmental community value, encouraging STEM education and youth

innovation and strengthening diverse populations.

A prominent example is our long-term educational program, EDGEUcate, aimed to raise

awareness and educate children from a young age on sustainable practices and the role of solar energy on the global efforts of decarbonization.

Maintaining and reinforcing ethical conduct throughout our value chain, advancing climate resilience, improving the efficiency

of our resource consumption and ethical sourcing of raw materials and components.

Our supplier code of conduct ("SCoC"), includes provisions

regarding, among others, ethics, safety, environmental protection, human rights, and fair employment.

As of December 31, 2023, over 280

key suppliers have signed their acknowledgment of the SCoC terms.

To date, we also conducted on-site audits of four contract manufacturers

and three major raw material suppliers in connection with their compliance with the SCoC requirements, and are aiming to further expand

these efforts in 2024.

In addition, our conflict-minerals practices involve engaging our suppliers to evaluate the traceability of their

upstream sources.

that our sustainability strategy aligns directly with 10 United Nations Sustainable Development Goals (SDGs), and our products and activities

are most critical to achievement of SDG #7, Affordable Clean Energy.

our success depends on our ability to attract and retain outstanding employees at all levels of our business.

As of December 31, 2023,

we had 5,633 employees (full time and part time).

Of these employees, 1,525 were engaged in research and development, 689 in sales and

marketing, 2,857 in operations, production, Q&R, and support, and 562 in general and administrative capacities.

Of our employees,

3,160 were based in Israel, 746 were based in Europe, 725 were based in Korea, 326 were based in the U.S and 676 were based in the remaining

countries in which we operate including China, Vietnam, India, Mexico, Australia and others.

for our SolarEdge Automation Machines employees and the employees of SolarEdge e-Mobility, none of our employees are represented by a

In 2024, we continued to enhance our responsible employment practices, focusing on safety and on employee growth and development.

• Powering Business:

Maintaining and reinforcing ethical conduct throughout our value chain, advancing climate resilience, improving the efficiency of our resource consumption and ethical sourcing of raw materials and components.

We believe that our sustainability strategy aligns directly with 10 United Nations Sustainable Development Goals (SDGs), and our products and activities are most critical to achievement of SDG #7, Affordable Clean Energy.

Human Capital

We believe our success depends on our ability to attract and retain outstanding employees at all levels of our business.

As of December 31, 2024, we had 3,961 employees (full time and part time).

Of these employees, 1,171 were engaged in research and development, 539 in sales and marketing, 1,804 in operations, production, quality and reliability, and support, and 448 in general and administrative capacities.

Of our employees, 2,052 were based in Israel, 600 were based in Europe, 475 were based in Korea, 336 were based in the U.S, 228 were based in India, and 270 were based in the remaining countries in which we operate, including China, Vietnam, Australia, and others.

Except for our SolarEdge e-Mobility employees, none of our employees are represented by a labor union.

We have not experienced any employment-related work stoppages, and we consider relations with our employees to be good.

As a rapidly growing business, we rely on the success of our recruitment efforts to attract and retain technically skilled people who

can support our ongoing innovation and expansion.

We aim to be inclusive in our hiring practices, focusing on the best talent for the

role, welcoming all genders, nationalities, ethnicities, abilities and other dimensions of diversity.

We aim to provide our employees with competitive salary and benefits that enable them to achieve a good quality of life

and plan for the future.

Our benefits differ according to local norms and market preferences, but typically include all salary and social

benefits required by local law (including retirement saving programs, paid vacation and sick leave) and many additional benefits that

go beyond legal requirements in local markets.

Training and Development:

We aim to provide our employees with advanced professional and development skills, so that they can perform

effectively in their roles and build their capabilities and career prospects for the future.

We maintain a leadership program for managers

and team leaders and deliver advanced professional training for sales, research and development and other functional teams as part of

our extensive training program each year.

Furthermore, we partner with local educational resources to offer formal learning programs on

a variety of subjects for the personal development and advancement of our workforce.

Equity and Inclusion:

We are striving to increase opportunities for women in executive and management positions as part of our

mission to promote gender parity and equal pay in accordance with equal opportunity laws.

taking active steps to increase the diversity of our workforce and promote inclusiveness among our employee base.

We have been providing

training and promoting education to create awareness and encourage inclusive practices across our global workplaces.

For example, we have

conducted foundational diversity and inclusion training for both managers and employees, training on the inclusion of people with disabilities

in the workplace, as well as hosting workshops, lectures, and webinars on various topics such as valuing diversity and fostering respectful

and positive interactions.

Additionally, as part of our commitment to enhance gender equality within our workforce, we maintained partnerships

with NGOs to enhance our pool of female candidates for tech roles and to encourage more women to take up tech-related careers.

an annual analysis of our gender pay gap to identify and work on closing any gaps, and we launched a global internal Women's Day campaign

called "Towards Gender Equality." The campaign included lectures by women in executive roles from SolarEdge and other global businesses

to empower and inspire women.

We also helped foster mentoring relationships among our female employees and managers across various professional

fields and geographical regions within SolarEdge.

Over 50 women from sites around the globe have successfully completed these programs

safety and health:

We believe that all accidents and injuries at work are preventable and we strive to achieve a zero-injury culture

across our offices and operations.

Our safety practices are designed to comply with applicable occupational health and safety regulations

and are certified to Occupational Health and Safety Quality Management Standard ISO 45001:2018.

We rely on the success of our recruitment efforts to attract and retain technically skilled people who can support our ongoing innovation and global operations.

We aim to be inclusive in our hiring practices, focusing on the best talent for the role, welcoming all genders, nationalities, ethnicities, abilities and other dimensions of diversity.

Employee benefits:

We aim to provide our employees with competitive salary and benefits that enable them to achieve a good quality of life and plan for the future.

Our benefits differ according to local norms and market preferences, but typically include all salary and social benefits required by local law (including retirement saving programs, paid vacation and sick leave) and many additional benefits that go beyond legal requirements in local markets.

Leadership, Training and Development:

We aim to provide our employees with advanced professional and development skills, so that they can perform effectively in their roles and build their capabilities and career prospects for the future.

We maintain a leadership program for managers and team leaders and deliver advanced professional training for sales, research and development and other functional teams as part of our extensive training program each year.

Furthermore, we partner with local educational resources to offer formal learning programs on a variety of subjects for the personal development and advancement of our workforce.

Corporate Social Responsibility:

We strive to increase opportunities for women in executive and management positions as part of our mission to promote gender parity and equal pay in accordance with equal opportunity laws.

Workplace safety and health:

We believe that all accidents and injuries at work are preventable and we strive to achieve a zero-injury culture across our offices and operations.

Our safety practices are designed to comply with applicable occupational health and safety regulations and are certified to Occupational Health and Safety Quality Management Standard ISO 45001:2018.

Our safety practices include:

safety officers at each of our manufacturing or R&D sites, mandatory annual safety training for all employees, mandatory job-specific

training for all employees in relevant roles (e.g., for those working in high-voltage labs), comprehensive safety, fire, and emergency

drill programs so that our employees are well-versed with emergency procedures and root-cause assessments of incidents and corrective

incorporated in Delaware in 2006.

Our principal executive offices are located at 1 HaMada Street, Herziliya Pituach 4673335, Israel and

our telephone number at this address is 972 (9) 957-6620.

nominated safety officers at each of our manufacturing or R&D sites, mandatory annual safety training for all employees, mandatory job-specific training for all employees in relevant roles (e.g., for those working in high-voltage labs), comprehensive safety, fire, and emergency drill programs so that our employees are well-versed with emergency procedures and root-cause assessments of incidents and corrective actions.

Corporate Information

We were incorporated in Delaware in 2006.

Our principal executive offices are located at 1 HaMada Street, Herziliya Pituach 4673335, Israel and our telephone number at this address is 972 (9) 957-6620.

Our website is www.solaredge.com .

annual, quarterly and current reports, proxy statements and other documents with the Securities and Exchange Commission (the “SEC”),

pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”).

Our reports, proxy statements and other documents filed

electronically with the SEC are available at the website maintained by the SEC at www.sec.gov .

the Investor Relations portion of our website at www.solaredge.com , as a routine channel of distribution

of important information such as press releases, analyst presentations, corporate governance practices and corporate responsibility information,

financial information including our annual, quarterly, and current reports, our proxy statements, and, if applicable, amendments to those

reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically

file such reports with, or furnish them to, the SEC.

All such postings and filings are available on our Investor Relations website free

contained on our website is not incorporated by reference into this Annual Report, and you should not

consider information

contained on our website as part of this Annual Report.

We file annual, quarterly and current reports, proxy statements and other documents with the Securities and Exchange Commission (the “SEC”), pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”).

Our reports, proxy statements and other documents filed electronically with the SEC are available at the website maintained by the SEC at www.sec.gov .

We use the Investor Relations portion of our website at www.solaredge.com , as a routine channel of distribution of important information such as press releases, analyst presentations, corporate governance practices and corporate responsibility information, financial information including our annual, quarterly, and current reports, our proxy statements, and, if applicable, amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such reports with, or furnish them to, the SEC.

All such postings and filings are available on our Investor Relations website free of charge.

Information contained on our website is not incorporated by reference into this Annual Report, and you should not consider information contained on our website as part of this Annual Report.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business