Badri Kothandaraman: We basically told you that the revenue mix between U.S. and international is 71% and 29% and most of our international revenue is Europe.
Unidentified Analyst: Okay. And that’s the same for Q1 is €“ do you think that’s going to be in line for Q1 as well?
Badri Kothandaraman: We don’t usually talk about that mix for Q1, but I think it will be slightly better because Europe is a little strong in Q1 compared to the U.S.
Unidentified Analyst: Great. Thanks. And just a follow-up, on batteries, can you talk a little bit about what you think with the new third generation, if you think €“ or what do you think the retrofit opportunity is going to look like?
Raghu Belur: This is Raghu. I think retrofit in general, for storage is going to be better than before because if you recall the IRA now has 30% battery ITC, standalone battery ITC, which means that you can be decoupled from solar, you can come in and add battery later on into the system and still get your 30% ITC. And that’s €“ and for us at Enphase, we have a unique benefit because we are AC coupled we can very easily do that. So if you have an existing system, even if it’s an older generation solar system, you can come in and add an AC coupled battery. And you can add it in modularity of 5 kilowatt hours, you can grow it how many hour system you want to add, you can add it over time. All of those things are possible with our system and get access to the 30% ITC credit. So definitely a benefit for retrofit.
Unidentified Analyst: Great. Thanks very much.
Operator: The next question comes from Kashy Harrison of Piper Sandler.
Kashy Harrison: Good afternoon and thank you for taking the questions. So Badri, in your prepared remarks, you mentioned that distributors €“ some of your distributors are starting to see a bit of recovery in January. I was just wondering if you could maybe share some details on what those distributors are now seeing in terms of year-on-year growth and maybe how that compares to what they had seen in the prior quarters?
Badri Kothandaraman: No, those are not our data. So we cannot share those. All I said is basically €“ there are two things, which I said, we are seeing the distributor and installer partners a little more cautious in booking orders. Normally, we have 6-month order visibility and that has been €“ that is now somewhat reduced as they watch their spending. And then I also talked about the fact that our sell-through, which is what the distributors sell to the installers. Our sell-through was quite strong in December, while we saw a little bit more seasonality than normal in the month of January. On the originations, which I talked about where basically anecdotal data points from the installers that a few of them have seen the originations pickup in January compared to December.
We also have our Solargraf design and proposal engine. We also have another company we bought called SolarLeadFactory, which also deals with selling leads to our installer partners. We are also seeing very similar trends that January is better when compared to December. So although the data we have is limited. And so I mentioned that the €“ this point makes us cautiously optimistic for Q2.
