Good morning, and welcome to Enphase Energy's 2020 Annual Meeting of Stockholders. I would now like to turn the call over to Badri Khosan Doraman, Enphase Energy's President and CEO. Please go ahead.
Good morning. On behalf of Enphase Energy's Board of Directors, its officers and employees, I'm very happy to welcome you to the Enphase Energy's 2020 Annual Stockholders' Meeting. The meeting will now officially come to order. The time is 11 am Pacific on Wednesday, May 20, 2020, and the polls are now open for voting on all matters to be presented. This year, due to various restrictions in place and the precautions we are taking to help promote the well-being and safety of others in order to help combat the COVID-nineteen pandemic, we are holding our annual stockholders meeting virtually.
We also believe that hosting our meeting online will allow us to reach a greater number of shareholders because they can participate from any location and will still have the ability to vote and ask questions through the online platform. The meeting is being recorded and will be available for 1 year in the Events section of our Investor Relations website found at investor. Nphase.com. Before we proceed with the formal business of the meeting, I'd like to introduce you to the members of the Board and others who are online with us today. The members of the Board and nominees with us virtually today are Mr.
Steve Gomo is the Director and Chair of the Audit Committee Mr. Ben Kotlin, Director and Chair of the Nominating and Corporate Governance Committee Mr. Joe Malkow, the Director Mr. Richard Moura, the Director and Mr. TJ Rodgers, the Director and Chair of the Compensation Committee.
Also joining us online today are Mr. Eric Branderes, Executive Vice President and Chief Financial Officer Mr. Raghu Bellur, Chief Products Officer and Ms. Lisan Hung, Vice President, General Counsel and Corporate Secretary. I would also like to introduce Mr.
Justin Yart and other members of the Deloitte and Tushall LP, the company's independent registered public accounting firm who are online and available to respond to appropriate questions, as well as Mr. John Sellers of Cooley LLP, the company's outside legal counsel, who will act as secretary of today's meeting. Today, we will conduct the formal business of the meeting as set forth in the notice of annual meeting and proxy statement. Following that, I will give a short report on the company and I will answer appropriate questions from stockholders as time permits. With that, I would like to turn the meeting over to Lee san Hung to conduct formal business of the meeting.
Lee Sung?
Thank you, Badri. David will first present Proposals 1, 2, 35 as set forth in the proxy statement submitted for approval by our Board, and then we will ask the stockholder representative to present his proposal number 4 as set forth in the proxy statement. After all the proposals have been presented, we will take questions from stockholders related to the proposal. In order for us to conduct an orderly meeting, we ask that all of you follow the rules of conduct for this meeting, which can be found under the meeting material in your online portal. Stockholders who are attending this meeting with a valid 16 digit control number may submit questions or comments after each proposal.
To ask a question or submit a comment, click on the Ask a Question button on your screen. We will try to answer questions submitted that are germane to the proposal as and if we have time. I have at this meeting a complete list of the holders of record of the company's common stock as of March 23, 2020, the record date for this meeting. The list is available for inspection by stockholders of record during this meeting through your online portal. I also have an affidavit from Broadridge Financial Services team certifying that on April 10, 2020, a notice of annual meeting of stockholders of the company was deposited in the United States mail to all stockholders of record at the close of business on the record date.
At this time, I'd like to introduce Ms. Patricia Hodson of Broadridge, who is present virtually and has been appointed to act as Inspector of Election at this meeting. Ms. Hodson has taken and subscribed the customary oath of office to execute her duties with strict impartiality. We will file this oath with the records of the meeting.
Ms. Hodson's function is to decide upon the qualification of voters, accept their votes, and when balloting on all measures is completed, to tally the votes. I've been informed by Ms. Hodson that proxies have been received for 107,000,000 743,031 of the 123,800 and 50,901 shares of common stock outstanding on the record date. Based on this number, we have a quarter of the meeting today and we may now carry out the official business of the meeting.
As I mentioned earlier, the polls are open for online voting on all matters to be presented. Following presentation of the items to be voted on, Quadrant will give a brief presentation on the company. After that, we will close the polls. We will not accept ballots, proxies, revocations or changes after the closing of the polls. If you have already submitted your vote by proxy and do not wish to change your vote, you do not need to do anything at this time and your shares will be voted as previously instructed.
If you intend to vote and have not already done so, you must submit your vote online now in order for it to be counted. If you have not yet voted, we encourage you to vote online now by clicking the Here Now button. There are 5 proposals to be considered by the stockholders at this meeting. We will take questions from stockholders related to the proposals after all 5 have been presented. The first item of business is the election of 2 nominees for directors to serve until the 2023 Annual Meeting and until their successors are elected.
The nominees for Class II directors recommended by the Board of Directors are Mr. Benjamin Cortland and Mr. Richard S. Mora. I now declare the nominations close.
The second item of business today is the advisory vote on the executive compensation of the company's named executive officers as described in the proxy statement. The stockholders have been asked to vote on an advisory basis on the following resolution: Resolve that the compensation paid to the company's named executive officers as disclosed pursuant to Item 402 of Regulation S K, including the compensation tables and narrative discussion is approved. The 3rd item of business today is the approval of the amendment of the certificate of incorporation to increase the number of authorized shares of common stock of the company to an aggregate of 200,000,000 shares. The 4th item of business today is the ratification of the selection by the audit committee of Board of Directors of Deloitte and Touche LLP as the independent registered public accounting firm of the company for the current fiscal year ending December 31, 2020. The 5th and final item of business today is the stockholder proposal requesting the company issue a sustainability report describing its environmental, social and governance performance.
For the stockholder representative presenting this proposal, please state your name and verify that you are a stockholder or representative of a stockholder. I will ask that you keep your comments to 3 minutes in the interest of time. Operator, is Mr. Dale Whannen from Sustainvest Asset Management LLC available to introduce this proposal and make a brief supporting statement?
Yes. Mr. Wanning, your line is now open.
Thank you.
Good morning and thanks for having me. I am Dale Whannen, President of Sustainvest Asset Management and a shareholder of Enphase Stock. The proposal we have submitted to the company, Enphase, asked to issue an annual sustainability report describing the company's ESG or sustainability performance and their short and long term goals to sustainability related issues. In the company's opposition statement, it states that the Board of Directors does not believe that the producing and sustainability report would be productive use of resources or in the best interest of the company or stockholders. They also state that 60% of the Russell 1,000 companies published a sustainability report in 2018, and only 34% of the smallest half of the Russell 1,000 Index published such a report.
It's well understood that it may take some time to put together one of these reports, but why not be part of the 34% that took the forward looking initiative to be part of the solution to climate change and acting as a steward for future generations. Something to think about. This is not us against you. This is an ask of a shareholder who believes Enphase is part of the future that my children can be inspired from. After looking recently at the cash balance of Enphase climbing above $200,000,000 at the end of 2019, Perhaps putting some of this towards creating this report is in the best long term interest of stakeholders and shareholders.
And in closing here, we are shareholders and I personally have solar panels on our home with your product in them and we're very pleased. My 2 kids are so proud to be actually the only one on our block in town with solar panels. But if sustainability is at the core of what you do as you state in the opposition, then perhaps it's time to create this sustainability report to highlight all of the positive things that Enphase is doing and will be doing for future generations ahead. Thank you for your time.
Thank you, Mr. Lonin. We appreciate your ongoing engagement with the company. And as to the proposal, the Board's response to it begins on Page 19 of the company's proxy statement. The Board recommends that the stockholders of the company vote against the proposal for the reasons that are set forth in the proxy statement.
And at this time, I will pause briefly to review any online questions or comments related to the proposal. There being no questions on the proposal, we will now provide a brief management presentation on the company. I would like to point out that management may be making forward looking statements about the company's current plans and expectations. Actual results may differ materially from current plans and expectations, so I encourage you to read our SEC filings where we discuss the risks inherent to our business. You'll find detailed discussions in our filings with the SEC, including our annual report on Form 10 ks for fiscal year 2019 and our quarterly report on Form 10 Q for the quarter ended March 31, 2020.
Please note that non GAAP financial measures referenced during Mr. Kathandaraman's presentation are reconciled to their most directly comparable GAAP financial measures found both in the presentation and in the Investor May 2020 presentation posted on our website at investor. Enphase.com. At this time, I'd like to introduce to you again Enphase Energy's President and Chief Executive Officer, Mr. Badri Kassandra Raman.
All right. Let's go to Slide 8. So a quick recap on the company. Enphase is the leading microinverter company in the world. We were founded in 2006 and we have 635 employees as of March 31, 2020.
Our headquarters is in Fremont, California. Their offices are globally there in Bangalore, in New Zealand and several other places. Our customers are installers, homeowners and module partners. We have shipped more than 27,000,000 microinverters to date, representing over 7 gigawatts. We have shipped over 1,100,000 systems in over 130 countries as of March 31, 2020.
Our 2019 revenue approximately doubled from 2018 and the revenue was $624,300,000 We shipped a total of 19 83 Megawatts DC. We've also shipped more than 30 6 megawatt hours of energy storage systems till date, and those are primarily to Asia, Pacific and Europe, and we expect to start shipping our in charge systems to North America later this year. 2019 was the first full year of GAAP profitability with net income of $161,100,000 Let's go to Page 9 to talk about various aspects of our financial performance. Page 9 is a 4 panel graph and you can see the individual bars with different colors represent 2018, 2019 and 2020. The 2018 is orange one.
The 2019 is the gray one. And the 2020 is the blue one. And obviously, we only have data for Q1 of 2020, but we have the data for the full 2018 2019. You can see the top left graph, we have had a nice growth in revenue. If you take, for example, just the Q1, so Q1 'twenty was much higher than Q1 'nineteen, which was again higher than Q1 of 'eighteen.
So we're doing really well in terms of revenue. If you look at the gross margin, the company has sequentially improved in gross margin really well. Q1 2018 was 26.5 percent, Q1 2019 33.5 percent and q1 2020, 39.5%. The operating expenses because we grew fast in terms of revenue, the non GAAP operating expenses dropped down and you can see the non GAAP operating expenses for the most recent quarter we reported Q1 'twenty was approximately 14%, 13.9%. And obviously because we increased our gross margins and we dropped our operating expenses as a percentage of revenue, our operating income has climbed from 1 point 2% in 2018 to 11.3% in 2019 Q1 to 25.7% in Q1 of 2020.
So it's nice performance overall in revenue, gross margin, OpEx and operating income. Let's go to Page 10. Page 10 is the GAAP to non GAAP reconciliation slide. Page 11. And once again, like what I talked about at the Analyst Day, if you look at the fundamental reason on what truly differentiates our support, it is 3 things: semiconductors, which is on the extreme left software in the middle and Ensemble in the right.
The heart of our microinverter is the ASIC. The ASIC is a trend for application specific integrated circuit. And we have several million gates, a 55 nanometer technology that chip that is zoomed in there is the ASIC we are talking about. That really is the heart of the microinverter and that controls it forms the basis of controlling all of the components in the microinverter. The name of the game for us is how can we pack more punch into the ASIC, how can we bring in the components in the microinverter into the ASIC, both on the digital as well as analog front.
And it gives a great advantage because it miniaturizes not only packs in more punch, it also miniaturizes the chip as we go into as we make use of Moore's Law. So today, for example, our IQ7 and IQ8 product, it has approximately 300 components in the microinverter. Someday, maybe not so far away from the future or so far away from now, I'd like to see that go down by a factor of 3 to 5 and pack a lot of those components into the ASIC simultaneously dropping the size of the microinverter to that of a phone. Software defined architecture, the one in the middle, it basically helps us to control the microinverter system, solar system, storage system remotely. And this is only possible if the entire system is seamlessly connected and communicating to each other.
And if I want to change some parameter, for example, all I need to do is to use this cloud software and change it over the cloud and I can affect the operation of the microinverter immediately. And I have that control, we call that as always connected. In our systems, all of the 27, most of the 27,000,000 microinverters are always connected to the cloud. It really is important for us because once it is always connected, we can ensure that the latest and greatest improvements in the software we do on a daily basis are reflected in the microinverters as and when we do it. And that's important for us to maintain outstanding quality.
On the extreme right, we have Ensemble Energy Management Technology. As we get into as we evolve from being a pure microinverter company to a home energy management systems company, we are going to be dealing with a lot of things here. Storage and we already deal with the grid, loads, solar and the generator, maybe a lot more things in the future like EVs. And we need something to manage all of these resources effectively. And Ensemble Energy Management Technology can do that.
Ensemble can do 2 things. 1 is this, manage all the resources really efficiently and optimize it. The other thing is, it's a grid agnostic technology, which means that our microinverter beginning with IQA will produce power with or without the grid. So once again, these three things, semiconductor, software and Ensemble, they are our core differentiating pillars. Page 12, the power of these three things leads to higher quality.
Like for example, because of our ASIC strategy, we have fewer parts. We only have a single stage microinverter. Because of that, we have higher efficiency and we have lesser moving parts. Because of higher efficiency, also there is less power, better reliability. We don't have any high voltage DC.
So our products are inherently safe. Even for the battery, we use a chemistry that's called lithium iron phosphate. It's much safer because the product is used in your home. All our designs are very flexible. You can start off small and you can keep adding things whether it's more batteries, modular batteries or microinverters on the roof, easy to add, more power and more energy.
Exceptional value is the grid independence. Of course, things like AC panel where we embed the microinverter at the back of the panel. So the installers will not need to worry about the microinverter and it is pure plug and play, one less thing to do for them, it creates exceptional value there. Our supply chain, of course, the way we do things is we try to make one hardware platform and we use software to configure the various functions we need. And because we use deep submicron technology, because we use semiconductor integration, low cost is something that falls out due to that innovation.
And so by definition, we will evolve to lower and lower cost. And yes, in short, if I look at high quality, safety, flexibility, value, the cost, all of the our architecture, the 3 pillars I talked about, semiconductor, software and Ensemble help us to create an exceptional customer experience. And we believe that's the biggest differentiator for us. Page 13. Now coming to various aspects of our operational excellence.
We have relentless focus on quality. Like what I have told on lot of conference calls, our business process of quality is something we take very seriously. Every week, we look at the returns that come. We try to do a complete root cause corrective action. Whatever we learn from that goes back into our business process.
And because our systems are always connected, if we do improve the software, then the customers get immediate benefit of it. Our target, like I've stated many times before, is annual DPPM of 500. DPPM stands for defective parts per million. 500 dBPM also means 0.05% annual failure rate. Next, let's come to customer service.
A few quarters back, I used to report NPS Net Promoter Score of 50% in the call. We have dramatically improved that. Our Net Promoter Score has gone up a lot. It's at 64% right now. And we want to become world class in that.
We're not going to be happy even with 64%. Our target to be reach 70% this year and then look to attain greater heights beyond that. Our wait time target is 30 seconds. We are roughly over a minute today. The target is 30 seconds upon exiting this year and long term target of course is 0.
Why have customers wait on the call? Gross margin management, on the right hand side. The gross margin management comprises of 2 things, effective pricing and cost. Effective pricing comes from pricing based upon value. We take we compare our product to the next available, next best alternative and say what value do we add on top of that and we determine pricing according to that.
I hired a VP of Pricing 3 years ago. It's paying enormous dividends for us because we are optimizing pricing based upon the value that we provide for every account, every transaction. One of the central strategies in pricing is to do what is called product segmentation, make sure that you segment products according to features and price them as per that rather than having one size fits all. We're utilizing that well in order to again optimize our gross margin dollars. In terms of cost, like what I pointed out, most of our cost will come from product innovation.
How can we utilize semiconductor integration in the ASIC to reduce our cost structure? How can we improve the connectors? How can we improve the transformers? Those are some things that we are always looking at for the long term. And of course, in the short term, supply chain optimization is something we are relentless about.
Tariff, contract manufacturing, diversifying our supply chain, doing a lot of procurement work, those are something that comes naturally to us. These are the two reasons why our gross margin is a lot resilient even in tough times like this, is discipline in pricing as well as continuing cost control. Page 14, let's come to our resilient business model. This is yet another reason why our gross margin is good. Is CapEx light?
We don't have any big factories when we are not planning any. In terms of OpEx, I made a decision 3 years ago to basically have our R and D teams in India as well as New Zealand. So we are gradually moving most of the engineering workforce there. And obviously, we still have a reasonable sized team in North America. Our customer support is still in North America and executive management is also here.
And long term, we'll be looking to leverage our India and New Zealand teams as we grow bigger and bigger. Page 15, yes, strategy like what I stated, you're not transformed from a pure play microinverter company to a home energy management systems company. Page 16 is a recap of what I talked about on Ensemble. Ensemble makes the energy management seamless. Ensemble can work with solar, grid, generator, storage as well as the loads.
I am running an Ensemble system in my house right now and I can see how interaction goes on between the solar grid storage and loads. And in the future, we are going to be adding generators too. Not only that, and anything that hooks on to the AC bus, it might be something to do with EV that can plug on to this AC bus and Ensemble is capable of managing that. Let's go to page 17. The concept of an Ensemble system, how will it look like?
How will an all in one smart energy system look like? So obviously, you have the IQ microinverters on the roof, which are generating energy. You can see that. You have the Encharge 10, which is on the right side of the car. That's the storage system that will store energy.
Then you have, an EMPOWERSmart switch as well as the combiner. You can call them as one is a power gateway and the other is a communications gateway. The power gateway is an area where all power comes to that gateway and that gateway does have got the intelligence to manage everything. And the communications gateway obviously communicates stuff to the cloud. And everything is seamless for the homeowner because all he looks at is the Enlighten app, which is on the right hand side.
Through the Enlighten app, the homeowner kept everything is at his fingertips. He knows at every instant how much of energy is generated, how much is stored, how much is consumed and if we have a generator that's participating, he has the ability to go on grid, off grid, everything is at his fingertips. That's what an all in one smart energy system is all about. That is our value proposition. With Ensemble, right at the core controlling all of these resources, this is an unbeatable all in one smart energy system.
Now, obviously, we are launching several new products in order to realize that vision. So, you can see here on the left hand side, we have residential solar and you can see the rules there. 1 says 2022 SAM, the other says 2019 SAM. First of all, what is SAM? SAM is served available market, which means the out of a total available market, what market are you participating in?
So if you see our 2019 TAM is $2,500,000,000 This is the areas we participate in the world. And for example, we don't participate in Japan. So that would be excluded in the SAM of 2019 in residential solar. So you can see that the SAM is increasing from 2019 to 2022 as we introduce IQ8 plus as we go into other countries like Japan. Now, I'm going to switch to the 3rd column, which is residential storage because it is useful to talk about both solar and storage together.
And you can see that with the right now, the sand that we are participating in is quite small because we don't have the product today for North America. We haven't yet introduced it. We are going to start shipping in charge and then that will be able to address the SAM of $3,000,000,000 for us on residential storage. That's why you see the SAM going from $500,000,000 in 20.20 in 2019 to $3,000,000,000 in 2022. That's addressed by in charge.
So both solar and storage will constitute a home energy management system. In addition, now we are realizing that with our differentiation, which is the semiconductor software as well as Ensemble, we are able to address small commercial solar very effectively. We can bring the same high quality, same customer experience in addressing small commercial solar. And there, that's why you can see the same going up from $300,000,000 to $1,500,000,000 there. And the last one is a blue ocean market, which I talked about on the Analyst Day.
How about producing something that helps? For example, in India to basically address a whole new market and we talked about 3 markets in the Analyst Day. 1 was solar water pumps, the other was standalone systems and the other was air coolers. They're all specific markets, specifically for the Indian market. And in addition to that, we are actually exploring why not launch such a product like this Ensemble in a Box for the residential homeowner even in the U.
S. So we have like what I said in the earnings call, we are repurposing the Ensemble in a box for North American customers and that will basically cater to energy security inside the home and energy on the go outside the home. So, in short, these new products will help us become a home energy management systems company, will increase the served available from $3,300,000,000 in 2019 to $12,500,000,000 in 2022, roughly 4x. So in conclusion, the final slide, like what I said, we are transforming into a home energy management systems company. Our number one priority is always taking care of the customer, customer first approach.
You will always see us prioritizing what we do to provide the world class customer experience, which will be reflected in how customers measure us, which is Net Promoter Score. And of course, the leading reliability, which will lead to world class NPS because of our customer first approach. The new products we talked about, new products to expand our market by Forex and leveraging digital transformation. That's one I didn't talk about, but we are going to talk about a lot more in the coming quarters in the earnings call is how can Enphase create a digital platform where not only it can cater to all the homeowners who are contacting Enphase, but it can make the installer's life very efficient and thereby providing one single platform where homeowners, Enphase and installers interact seamlessly on every transaction and once again provide an outstanding customer experience. So you'll see a lot more action from various tools we will introduce for the installer and various things we will do for the homeowner and this is a multiyear activity.
And this activity once again, what is the expectation is by providing a great customer experience, we will be able to sell a lot more home energy management systems to them. All right. Thank you.
At this time, Badri will address appropriate questions that have been submitted by our stockholders. Questions on similar topics will be asked as one question in the interest of time.
Let me read out the questions. The first question, which of the risk factors listed in the 2019 Form 10 ks management is most concerned about in the short term and how will that risk be mitigated? In the short term, like what I said in the earnings call, the COVID-nineteen situation is what's on our mind in the short term. And obviously, we are doing a lot of things to mitigate it. Most importantly, while we are keeping our employees and partners safe, we are working closely with our customers to ensure that we take care and we do what is right for our customers.
And that's why we gave the guidance we did. And our desire is that we work with them in a difficult time. We don't stop the channel. We really are really we position ourselves for a rise in performance once the COVID-nineteen goes away subsides. Can you confirm the status and timing of N charge general availability?
Can you disclose preorders versus your projections? What are the pre order attach rates? How many installers have now been trained and are able to sell the product? Can you talk about the pricing roadmap for InCharge? We already said in the earnings call that we will start shipping and charge in June.
That's still on track. We are not going to disclose our preorders. How many installers have now been trained? We said we trained approximately 600 installer personnel and we plan to train a lot more in the current quarter and we are not going to be talking about pricing here. The next question, how do Enphase cost for batteries compared to Tesla?
I know the chemistry is different and your product has got a greater value, but they are rumored to have a back cost below 100 dollars per kilowatt hour. Can you talk about how you stay cost competitive? We work with a number of contract manufacturers and battery suppliers. So we believe we will have access to the best in class cost structure. Having said that, I think you got it exactly right.
Our product does have a tremendous value. It's a complete system like what I talked about, full solar and storage system. It offers flexibility and modularity that no competitor can. Basically, with our quality discipline and customer experience mentality, that will be a huge differentiator. In addition, our battery is lithium iron phosphate, very safe battery chemistry, in addition to operating primarily at low voltages.
And to top it all, Ensemble, most of our batteries will be shipping with IQ8 on the roof in the later part of the year. And IQ8 can do something that we believe none of the other solutions can, which is basically provide a grid agnostic solution when there is no solar, meaning yes, sorry, when there is no grid, our IQ8 can still produce power while most competing solutions cannot. Your original forecast for SunPower was that it would add $60,000,000 to $70,000,000 annually in revenue for solar. Is that still correct? And is that just in the U.
S? Now it is almost 2 years into the deal, what are the plans for international? What is the impact of SunPower spin off of Maxeon on the relationship and projections? Will Maxeon create Enphase based AC panels? Will those be marketed and sold outside of the U.
S? If so, by who? Can you talk about SunPower's interest in using Encharge versus their own solution? We talked about our original forecast, which was $60,000,000 to $70,000,000 annually. Yes, we are on track to that.
And obviously, COVID situation is a special situation, but outside of that, we are on track. And what are the plans for international? SunPower and Maxeon are going to spin out as separate companies and we are going to continue to work closely with them. If we have something to announce, we will announce at that time. Can you talk about your homebuilder strategy other than SunPower channel?
How does the competing forces on the coronavirus and the 2020 mandate playing out? We are working with the right players with regarding the home builders. Obviously, SunPower is a great partner for us. And then Peterson Dean is a great partner for us. We got a handful of other partners as well that we are working with and that's our strategy right now.
Please update on what is happening in Africa with the unknown partner. I'm having trouble in reading the question. One second. Okay, let's go to the next question while we can pull it. Okay.
Question, there's another question. We'll get back to that question later once I can access it. So thank you for all your hard work in providing value to us as shareholders and also as homeowners. My question is what can Enphase do going forward to improve awareness, trust, availability and support among construction professionals such as architects, contractors, electricians as well as installers and distributors so that the homeowners like me will not need to fight an uphill battle in order to be an Enphase household. I have to insist to vandalize, plead, educate and occasionally threaten when I should have just been easy, easier to say my installer and distributor ever had.
What can Enphase do to make this process easier by improving awareness, trust and availability among everyone a homeowner would encounter in this process? It's a good question. And like what we talked about, you'll hear more from us on this front. This is the whole objective of the digital platform. The digital platform will help us to do a lot more marketing, lot more interaction with the homeowners and at the same time utilize our partner network of installers to make Enphase more effective.
And our strategy is pretty simple. We are always going to work with our installer partners and we have a number of installer partners. We are creating something called as an Enphase installer network. We have our Enphase installer network comprised of the most loyal Enphase installers. And the name of the game for us is to create that network, is to make that network a lot more effective by giving them a lot of tools and then by matching the homeowners with the right installers, we believe we can unlock a lot of value.
And we'll talk more about it on that front in the coming earnings calls. The Commercial Analyst Day already talked about the growth in commercial sand in from $300,000,000 to $1,500,000,000 in 2022. Is that the sand that is addressable by the IQ8D? What kilowatt size of systems are you realistically seeing as being in the sand? What are the native plans of what are the plans for a native 3 phase 480 volt product as presumably that's a much larger market.
Right now, I'll only talk about our plans for small commercial. When I say small commercial, I mean basically anything from 20 kilowatts to about 200 kilowatts. That's a nice market. That is the $1,500,000,000 of worldwide sand in 2022. And right now, I'm not ready to talk about the 3 Phase 480 World product.
We'll talk about it when we can. I have 28 M250s. So, Badri, you said at a stockholder meeting 2 years ago that with just 1 or 2 IQ8 that my system could become grid agnostic with some Enphase software and hardware, that still grew. Fortunately, that is it's theoretically possible, but I think practically it may not work. It may not work.
And I think we still need to do a lot more experimentation in order to see if a mix of M Series and IQ8s will yield the right results. And unfortunately, we are not going to do that just yet. So right now, our plans are to have the solar system purely of IQVATES. Are there plans to use the IQVXB or similar in a version of EnChart? If so, was it designed for that originally or there are advantages of the individual micros in N Chart?
Are there plans to expand the dual architecture to a quad? It's a good question. If I today the microinverters that are used in M*Charge, every 3.3 kilowatt hour battery has got 4 microinverters in it. Each microinverter has 3 20 watts, 3 20 watts times 4, 1.28 kilowatts. So a 3.3 kilowatt hour battery has got 1.28 kilowatts of power.
So the next question is, if you use 2 IQ8D microinverters, that will give you 6.40 times 2, which is 12.80 instead of using 4. That's a great question. We are obviously thinking in that direction. That will help us in getting to economies of scale. In addition, it will also help us to provide outstanding power.
For example, if we can use 3 IQ8Bs and that will give you 1.92 kilowatts enabling much faster charging. So we're going to try all of these permutations and combinations, but it's a good idea. We are looking at it. IQ8 residential, can you talk about progress there? When will systems with IQ8 on the roof be available to preorder?
IQ8 on the roof will be available in the later half of this year. Yes, we are working on it. Regarding the recently announced buyback, how many shares has the company bought back and how much of the $200,000,000 authorization has been spent? Yes, Eric? Yes.
So we haven't used any of the $200,000,000 available approved by the Board. We did we hope to cover on shares vested by employees, which represent 40% of taxes of the total amount, which equates to about 938 1,000 shares in Q1. Right. So the answer is so far of the $200,000,000 authorization, we have spent nothing. What is the plan of manufacturing outside China and Mexico?
Yes, we are working on a 3rd site and we will announce when we are ready. At this point, inverters are going to be shipping from that site for characterization, not for production yet. They're going to be shipping out very shortly. And once they are characterized, we have a few more cycles of learning on quality. I expect maybe by the Q4, we may have that manufacturing location ready and we will announce it at that time.
Can we get an update to the IQ8 status? We already talked about that. Please update us on what is happening in Africa with the unnamed partner. Is that business currently material to them or Enphase? Does Enphase have the ability to sell to other channels and developers in Africa?
We're not going to make a comment on it except that we are working with our partner very closely and we are working to make them successful and yes that product is a variant of our IQ8 product. I think with that, I believe I addressed 90% of the questions that we got and I think done there. Lisa? Okay.
Thank you. We will now return to the proposals for this meeting. The time is now 11:50 Pacific Time and the polls are officially closed. Ms. Hodson, please present the preliminary report of the Inspector of Election.
Based upon the results, my report as the Inspector of Election covering the proposals presented at this meeting is as follows: The proposal to elect each of the aforementioned nominees for Director of the company's Board of Directors is carried. The resolution concerning the advisory vote on the executive compensation of the Company's named executive officers is approved. The amendment to the certificate of incorporation to provide for an increase in the number of authorized shares of common stock to an aggregate of 200,000,000 shares is approved. The selection of Deloitte as the company's independent sustainability report describing its ESG that the company issue a sustainability report describing its ESG performance is carried.
Thank you, Ms. Hodson. We expect to report our preliminary voting results or if available to us on a timely basis, our final voting results on a current report on Form 8 ks to be filed with the SEC within 4 business days after the end of this meeting. If not earlier reported, we expect to report our final voting results in an amendment to our Form 8 ks within 4 business days after the final results are known to us. On behalf of Mr.
Kothan Rahman, today's meeting is concluded. Thank you again for your attendance at today's meeting and for your continued support of Enphase Energy.
The annual meeting of stockholders has now concluded. Thank you for participating.