Kashy Harrison: Fair enough. Thanks for the clarification there. And this is my follow-up question. In the event that you’re the only major player that’s able to capture the microinverter credit. Can you speak to your willingness to use the manufacturing credits as a tool to gain market share? In other words, just passing on all those benefits to the customer and just using that to gain share? And that’s’ for me, thank you.
Badri Kothandaraman: Yes. I mean we normally don’t think like that. We think we are quite disciplined. The product must add value and it must add value compared to the next best alternative. That’s the only way for us to win long-term. So this one is an incremental benefit and we have to do a lot of work for that. There is a lot of R&D. There is a lot of work we have to do in reliability in qualifying these factories and having the right operations running there. Of course, I talked about the capital outlay, etcetera. So all of those are we are investing in all of those right now. But we are going to be extremely disciplined. We are not going to use this as an opportunity to lose that discipline in pricing.
Kashy Harrison: Thank you.
Operator: Next question comes from Praneeth Satish of Wells Fargo. Please go ahead.
Praneeth Satish: Thanks. When you look at the U.S. market, I think you mentioned more than the typical 15% seasonal slowdown in January. Can you maybe just unpack whether that’s more concentrated in in states like California? Or is it more evenly distributed across the country?
Badri Kothandaraman: I mean, in California, there is an added complexity due to the due to the weather in the first few weeks of January. So I would say yes, that’s the only difference there. So once the weather is normalized, I think, we are going to find it is equivalent across the states.
Praneeth Satish: Okay. Got it. And then just switching gears, I wanted to ask on the bidirectional charger and what you’re working on there. I guess how much demand do you think there’ll be for this product down the road? I think it’s small now, but down the road? And then when you think about pricing, I mean, how much value do you think you could ascribe to bidirectional charger given all the opportunities that it opens up.
Raghu Belur: Yes. This is Raghu. To begin with, we shouldn’t think about a bidirectional EV charger or something stand-alone by itself. It’s a core part of our energy management system. Energy management system will include, obviously, solar, stationary batteries, bidirectional EV chargers, grid management, etcetera. So it is part of that full solution that we offer. And within that full solution set, energy management piece, the software that’s federating how the energy should flow between all of these resources as well as into the house. So that’s the way we think about it. As far as €“ on a first principle basis, it would be if you buy an EV, you should buy directionally EV charger. It’s really as simple as that in order to gain the most benefit out of it because should think back, as we said, it does both of those use cases we talked about, which is both vehicle-to-home as well as vehicle to grid, vehicle-to-home means providing resiliency for the home.
It’s the resiliency that the IQ8 on the roof provides see that our battery, modular battery system provides the resiliency now added resiliently that the car can also provide. And when it comes to vehicle to grid, this is about the ability to leverage the energy that you have stored in our €“ store in your car to provide things like grid services on act like a virtual power plant. So I think you bring a lot of value to it by being part of our energy system and really, I would expect that anybody who buys in EV would be naturally motivated to buy the Enphase Energy system, which would include the solar, the battery and the bidirectional EV charger.
