Good morning, welcome to Enphase Energy's 2020 annual meeting of stockholders. I would now like to turn the call over to Badri Kothandaraman, 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 2020 annual stockholders meeting. The meeting will now officially come to order. The time is 11:00 A.M. Pacific on Wednesday, May 20th, 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-19 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 one year in the events section of our investor relations website, found at investor.enphase.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. Steven Gomo is the director and chair of the audit committee, Mr. Benjamin Kortlang, director and chair of the nominating and corporate governance committee, Mr. Joseph Malchow, the director, Mr. Richard Mora, the director, and Mr. TJ Rodgers, the director and chair of the compensation committee. Also joining us online today are Mr. Eric Branderiz, Executive Vice President and Chief Financial Officer, Mr. Raghu Belur, Chief Products Officer, and Ms. Lisan Hung, Vice President, General Counsel, and Corporate Secretary.
I would also like to introduce Mr. Justin Yahr and other members of the Deloitte & Touche LLP, the company's independent registered public accounting firm, who are online and available to respond to appropriate questions, as well as Mr. John Fellers 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 Lisan Hung to conduct formal business of the meeting. Lisan?
Thank you, Badri. Today, we will first present proposals one, two, three, and five 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 four, as set forth in the proxy statement. After all the proposals have been presented, we will take questions from stockholders related to the proposals. 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 materials 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 proposals 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 23rd, 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 Solutions, Inc., certifying that on April 10th, 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 Hudson of Broadridge, who is present virtually and has been appointed to act as Inspector of Election at this meeting.
Ms. Hudson 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. Hudson'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. Hudson that proxies have been received for 107,743,031 of the 123,850,901 shares of common stock outstanding on the record date. Based on this number, we have a quorum for 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, Badri 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 Vote Here Now button. There are five proposals to be considered by the stockholders at this meeting. We will take questions from stockholders related to the proposals after all five have been presented. The first item of business is the election of two nominees for directors to serve until the 2023 annual meeting and until their successors are elected.
The nominees for Class 2 directors recommended by the board of directors are Mr. Benjamin Kortlang and Mr. Richard S. Mora. I now declare the nominations closed. 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. Resolved 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 third 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 million shares.
The fourth item of business today is the ratification of the selection by the audit committee of the board of directors of Deloitte & Touche LLP as the independent registered public accounting firm of the company for the current fiscal year ending December 31st, 2020. The fifth 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 three minutes in the interest of time. Operator, is Mr. Dale Wannen from SustainVest Asset Management LLC available to introduce this proposal and make a brief supporting statement?
He is. Mr. Wannen, your line is now open.
Thank you. Good morning, and thanks for having me. I am Dale Wannen, president of SustainVest Asset Management and a shareholder of Enphase stock. The proposal we have submitted to the company Enphase asks 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 producing a 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 1000 companies published a sustainability report in 2018, and only 34% of the smallest half of the Russell 1000 Index published such a report.
It's well understood that it may take some time to put together one of these reports, 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 a future that my children can be inspired from. After looking recently at the cash balance of Enphase climbing above $200 million 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. 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 two kids are so proud to be actually the only one on our block in town with solar panels. 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. Wannen. We appreciate your ongoing engagement with the company. 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. 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-K for fiscal year 2019 and our quarterly report on Form 10-Q for the quarter ended March 31st, 2020. Please note that non-GAAP financial measures referenced during Mr. Kothandaraman'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 Kothandaraman.
All right. Let's go to slide eight. So 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 31st, 2020. Our headquarters is in Fremont, California. Our 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 million microinverters till date, representing over seven gigawatts. We have shipped over 1.1 million systems in over 130 countries as of March 31st, 2020. Our 2019 revenue approximately doubled from 2018, and the revenue was $624.3 million. We shipped a total of 1,983 MW DC.
We've also shipped more than 36 megawatt hours of energy storage systems till date, and those are primarily to Asia, Pacific, and Europe, and we expect to start shipping our Encharge systems to North America later this year. 2019 was the first full year of GAAP profitability, with net income of $161.1 million. Let's go to page nine to talk about various aspects of our financial performance. Page nine is a four-panel graph. You can see the individual bars with different colors represent 2018, 2019, and 2020. The 2018 is the orange one, the 2019 is the gray one, and the 2020 is the blue one. Obviously, we only have data for Q1 of 2020, but we have the data for the full 2018 and 2019. You can see the top left graph. We have had a nice growth in revenue.
If you take, for example, just the first quarter. Q1 2020 was much higher than Q1 2019, which was, again, higher than Q1 of 2018. 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%, Q1 2019, 33.5%, 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 2020, was approximately 14%, 13.9%. Obviously, because we increased our gross margins and we dropped our operating expenses as a percentage of revenue, our operating income has climbed from 1.2% in 2018 to 11.3% in 2019, Q1, to 25.7% in Q1 of 2020.
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. Once again, like what I talked about at the analyst day, if you look at the fundamental reason on what truly differentiates us apart, it is three 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 stands for application-specific integrated circuit. We have several million gates at 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. It forms the basis of controlling all other 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? It gives a great advantage because it miniaturizes. Not only it packs in more punch, it also miniaturizes the chip as we make use of Moore's Law. 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 three to five 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. This is only possible if the entire system is seamlessly connected and communicating to each other. 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. I have that control, we call that as always connected.
In our systems, most of the 27 million 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. That's important for us to maintain outstanding quality. On the extreme right, we have Ensemble energy management technology. 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, the generator, maybe a lot more things in the future, like EVs. We need something to manage all of these resources effectively. Ensemble energy management technology can do that. Ensemble can do two things.
One 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 IQ8, will produce power with or without the grid. 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 1-stage microinverter. Because of that, we have higher efficiency. We have lesser moving parts. Because of higher efficiency also, there is less power, better reliability. We don't have any high voltage DC. 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, 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. The installers will not need to worry about the microinverter, 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, we use software to configure the various functions we need. Because we use deep submicron technology, because we use semiconductor integration, low cost is something that falls out due to that innovation. By definition, we will evolve to lower and lower cost. Yeah.
In short, if I look at high quality, safety, flexibility, value, the cost, all of these, our architecture, the three pillars I talked about, semiconductor, software, and Ensemble, help us to create an exceptional customer experience. 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've told on a 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. 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 DPPM also means 0.05% annual failure rate. Let's come to customer service. A few quarters back, I used to report a customer NPS, net promoter score, of 50% in the calls. 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 you look to attain greater heights beyond that. Our wait time target is 30 seconds. We are roughly over a minute today, but the target is 30 seconds upon exiting this year. Long-term target, of course, is zero. Why have customers wait on the call? Gross margin management, on the right-hand side. The gross margin management comprises of two things, effective pricing and cost.
Effective pricing comes from pricing based upon value. We compare our product to the next available, next best alternative, and say, "What value do we add on top of that?" We determine pricing according to that. I hired a VP of pricing three 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 are 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. 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 our 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. It's CapEx-light. We don't have any big factories, and we're not planning any. In terms of OpEx, I made a decision three years ago to basically, have our R&D teams in India as well as New Zealand.
We are gradually moving, most of the engineering workforce there. Obviously, we still have a reasonably sized team in North America. Our customer support, et cetera, are still in North America, and executive management is also here. Our long-term, we'll be looking to leverage our India and New Zealand teams, as we grow bigger and bigger. Page 15. Strategy like what I stated, transform 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. An 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. In the future, we are going to be adding generators, too.
Not only that, in anything that hooks on to the AC bus, it might be something to do with EV that can plug on to this AC bus. 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? 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. You have Enpower Smart Switch as well as the combiner. You can call them as one is a power gateway, the other is a communications gateway.
The power gateway is an area where all power comes to that gateway. That gateway has got the intelligence to manage everything. The communications gateway obviously communicates stuff to the cloud. 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 can--. 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 you have a generator, is that 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. Obviously, we are launching several new products in order to realize that vision. You can see here, on the left-hand side, we have residential solar, and you can see the rows there. One says 2022 SAM, the other says 2019 SAM. First of all, what is SAM? SAM is Served Available Market, which means out of a total available market, what market are you participating in? If you see our 2019 SAM is $2.5 billion. This is the areas we participate in the world. For example, we don't participate in Japan, so that would be excluded in the SAM of 2019 in residential solar.
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. I'm going to switch to the third column, which is residential storage, because it is useful to talk about both solar and storage together. You can see that right now, the SAM 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 Encharge, that will be able to address the SAM of $3 billion for us on residential storage. That's why you see the SAM going from $500 million in 2019 to $3 billion in 2022. That's addressed by Encharge. 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. There, that's why you can see the SAM going up from $300 million to $1.5 billion there. The last one is the 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? We talked about three markets in the Analyst Day. One 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.
In addition to that, we are actually exploring why not launch such a product like this Ensemble in a box for the residential, the homeowner even in the U.S. 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. Encharge, these new products will help us become a home energy management systems company, will increase the served available market from $3.3 billion in 2019 to $12.5 billion in 2022, roughly 4x. 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-first approach.
You will always see us prioritizing what we do, to provide a world-class customer experience, which will be reflected in how customers measure us, which is net promoter score. Of course, industry-leading reliability, which will lead to a world-class NPS, because of our customer-first approach. The new products we talked about, new products to expand our market by 4x. Leveraging digital transformation. This 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. Once again, provide an outstanding customer experience.
You'll see a lot more action from us, various tools we will introduce for the installer, and various things we will do for the homeowner, and this is a multi-year activity. 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-K 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-19 situation is what's on our mind in the short term. 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. That's why we gave the guidance we did, and our desire is that we work with them in the difficult time. We don't stop the channel. We position ourselves for a rise in performance once the COVID-19 goes away, subsides.
Can you confirm the status and timing of Encharge general availability? Can you disclose pre-orders 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 Encharge? We already said in the earnings call that we will start shipping Encharge in June. That's still on track. We are not going to disclose our pre-orders. 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. We are not going to be talking about pricing yet. The next question, how do Enphase cost for batteries compare to Tesla?
I know the chemistry is different, and your product has got a greater value, but they are rumored to have a pack cost below $100 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, that 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 a lithium iron phosphate, very safe battery chemistry, in addition to operating primarily at low voltages.
To top it all, Ensemble, most of our batteries will be shipping with IQ8 on the roof in the later part of the year. 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 grid, our IQ8 can still produce power while most competing solutions cannot. Your original forecast for SunPower was that it would add $60 million-$70 million annually in revenue for solar. Is that still correct? Is that just in the U.S. now? It is almost two years into the deal. What are the plans for international? What is the impact of SunPower spin off of Maxeon on the relationship and projection? 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 million-$70 million annually. Yes, we are on track to that. Obviously COVID situation is a special situation. Outside of that, we are on track. 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 home builder strategy other than SunPower channel? How does the competing forces of 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 PetersenDean 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 up. Okay. This is another question. We'll get back to that question later once I can access it. 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? That the homeowners like me will not need to fight an uphill battle in order to be an Enphase household.
I have to insist, evangelize, plead, educate, and occasionally threaten when I should have just been easy, easiest sale 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? Good question. 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 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. Our strategy is pretty simple. We are always going to work with our installer partners. We have a number of installer partners. We are creating something called an Enphase Installer Network.
We have our Enphase Installer Network comprised of the most loyal Enphase installers. 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, then by matching the homeowners with the right installers, we believe we can unlock a lot of value. 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 SAM from $300 million to $1.5 billion in 2022. Is that the SAM that is addressable by the IQ8D? What kilowatt size of systems are you realistically seeing as being in the SAM? What are the plans for a native three-phase, 480-volt product? 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 $1.5 billion of worldwide SAM in 2022. Right now, I'm not ready to talk about the three-phase, 480-volt product. We will talk about it when we can. I have 28 M250s. Badri, you said at a stockholder meeting two years ago, that with just one or two IQ8s, that my system could become grid-agnostic with some Enphase software and hardware. Is that still true? Unfortunately, it's theoretically possible, but I think practically, it may not work. 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 result. Unfortunately, we're not going to do that just yet.
Right now, our plans are to have the solar system purely of IQ8s. Are there plans to use the IQ8D or similar in a version of Encharge? If so, was it designed for that originally, or there are advantages of the individual micros in Encharge? Are there plans to expand the dual architecture to a quad? It's a good question. Today, the microinverters that are used in Encharge, every 3.3 kWh battery has got four microinverters in it. Each microinverter has 320 W. 320 W times four, 1.28 kW. A 3.3 kWh battery has got 1.28 kW of power. The next question is, if you use two IQ8D microinverters, that will give you 640 times two, which is 1,280, instead of using four. It's a great question. We are obviously thinking in that direction. That will help us in getting the economies of scale.
In addition, it will also help us to provide outstanding power. For example, if we can use three IQ8Ds, and that will give you 1.92 kilowatts, enabling much faster charging. 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 pre-order? IQ8 on the roof will be available in the later half of this year. We are working on it. Regarding the recently announced buyback, how many shares has the company bought back, and how much of the $200 million authorization has been spent? Eric?
Yeah. We haven't used any of the $200 million available approved by the board. We hope to cover on shares vested by employees, which represent 40% of taxes of the total amount, which equates to about 938,000 shares, in Q1.
Right. The answer is, so far of the $200 million authorization, we have spent nothing. What is the plan of manufacturing outside China and Mexico? In China and Mexico. Yes, we are working on a third site. 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. Once they are characterized. We have a few more cycles of learning on quality. I expect maybe by the fourth quarter, we may have that manufacturing location ready. 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. 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 we are done there. Lisan?
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. Hudson, please present the preliminary report of the Inspector of Election.
Based upon the preliminary 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 million shares is approved. The selection of Deloitte as the company's independent registered public accounting firm for the fiscal year ending December 31, 2020, is ratified. The stockholder proposal requesting that the company issue a sustainability report describing its ESG performance is carried.
Thank you, Ms. Hudson. 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-K to be filed with the SEC within four 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-K within four business days after the final results are known to us. On behalf of Mr. Kothandaraman, 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.