By Katherine Hamilton

Shares of SolarEdge Technologies gained Monday after the company said it signed agreements with residential solar providers, and that it plans to eliminate 400 employees.

The stock rose 20% to $18.26 in morning trading. It has fallen 77% in the past 12 months.

The energy technology company said it has signed safe-harbor agreements with the solar panel and battery company Sunrun, as well as an unnamed company that finances residential solar installations.

Through the agreement, SolarEdge will provide inverters, power optimizers and batteries to its partners, with deliveries scheduled throughout 2025. The two other companies should become eligible for tax credits related to domestic manufacturing since SolarEdge produces its inverters in the U.S.

Separately, the company said Monday it plans to lay off 400 employees globally to lower overhead expenses. Once the layoffs are complete, SolarEdge anticipates quarterly expenses to be reduced by $9 million to $11 million.

The majority of the layoffs are planned for the first quarter of 2025. The company expects severance and termination benefits to cost between $3 million and $5 million.

SolarEdge also said it closed its second transaction selling its Section 45X Advanced Manufacturing Production Tax Credits. The sale includes a portion of the credits that SolarEdge earned in the third quarter of 2024.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

January 06, 2025 10:34 ET (15:34 GMT)

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