SolarEdge makes and sells DC-optimized inverter systems for solar PV installations. The core product system consists of three hardware components: power optimizers (small DC/DC converters attached to each solar module), inverters (DC-to-AC converters that work exclusively with SolarEdge optimizers), and batteries (DC-coupled residential and commercial energy storage). The key value proposition over traditional string inverters is that power optimizers let each module operate independently at peak output, producing more energy on complex or partially shaded rooftops. SolarEdge sells primarily to the residential rooftop solar market and the commercial & industrial rooftop market, with the U.S. accounting for roughly 60-65% of revenue. SolarEdge sells indirectly through distributors and wholesalers, and directly to large installers. Power optimizers are the largest revenue contributor (~41% of FY2025 revenue), followed by batteries and other products (~31%), and inverters (~28%). Hardware is nearly all of revenue; cloud monitoring and energy management software are bundled with hardware rather than sold as standalone subscriptions. Gross margins are heavily influenced by fixed cost leverage, product mix, and U.S. manufacturing economics — SolarEdge has shifted ~90% of production to the U.S. to capture Section 45X Advanced Manufacturing tax credits under the Inflation Reduction Act, which pay up to $0.11 per watt for domestically manufactured inverters and optimizers. SolarEdge is developing a next-generation platform called Nexis, a redesigned inverter and modular battery system with a volume ramp expected in the second half of 2026. The company is also developing a solid-state transformer platform targeting AI data center power infrastructure, with revenue not expected before 2027.