Erayak Power (NASDAQ: RAYA) Reports 500% Increase In Generator Sales In Fiscal Year 2022 As Countries Search For Alternative Energy Sources

A global energy crisis described by the International Energy Agency (IEA) as “the first truly global energy crisis, with impacts that will be felt for years to come” has occurred.

The continuous impact of the European energy crisis has significantly impacted global energy markets. Disruption in energy supplies has triggered a rise in energy prices.

As a result, investors, professionals and the general public have had to grapple with the implications on energy production and consumption, with natural gas prices surging to multi-year highs and oil hitting nearly an all-time record of $140 a barrel, resulting in increased demand for alternative energy sources and the adoption of diversified energy supply solutions.

The global energy crisis has presented an unprecedented challenge that players like Erayak Power Solution Group Inc. RAYA say they are solving. The company specializes in the manufacturing, research and development, and wholesale and retail of high-quality power solution products.

Erayak’s product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company’s products are used principally in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products.

500% Increase In Generator Sales in Fiscal Year 2022

The company’s goal is to be the premier power solutions brand, and a solution for mobile life and outdoor living seems to be fueling its growth.

A March 1 report showed that for the fiscal year 2022, sales of Erayak’s generators increased by approximately 500% compared to the fiscal year 2021. From July 1, 2022, to February 24, 2023, the company reports that it received over 40,000 generator orders, including 1KW inverter generators, 2KW inverter generators, 4KW inverter generators, and traditional generators.  

The increase in generator sales, the company explained, was due to the continuous impact of the European energy crisis that has significantly increased demand for Erayak’s generators, with approximately 91.9% of orders destined for European countries, of which 24% are expected to be sent to Ukraine.

For the first quarter of 2023, generator orders, including orders received and in the negotiation process, are estimated to be around 25,935 units, an increase of 163% compared to Q3 2022 and an increase of 53.5% compared to Q4 2022. Since the earthquake in Turkey on February 6, Erayak reports receiving demand orders for over 4,000 units directly from Turkey in the past two weeks.

Erayak Chairman and CEO Mr. Lingyi Kong stated, “Improving our production capacity is one of the main goals of our production department, considering the demand brought by disasters and reconstruction demand in the next several years, as well as the overall European market size. Since September 2022, we have installed two additional assembly lines in our generator production plant, which has increased production capacity from 3,684 generators per month to 9,614 generators per month.”

With the recent earthquakes that rocked Turkey disrupting the operation of 30 substations of Turkey's Electricity Transmission and further worsening energy supply in the region, Erayak says it is helping the country meet supply shortfalls with its energy solutions.

The increased capacity, orders and sales seem to indicate Erayak is a preferred energy solutions provider for many in an industry that includes players like Enphase Energy Inc. ENPH, Daqo New Energy Corp. DQ, and Ozop Energy Solutions Inc. OZSC.

Featured photo by TWStock on Shutterstock 

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