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Environmental Compliance of our Operations
Solvent Purification and Reusage in Sella 2
Water Efficiency
Resource Efficiencies
at our Sella 1 Facility
Working to Reduce the GHG Emissions of our Operations
Sustainability Report 2023 /
Climate Change Mitigation & Resource Efficiency
SolarEdge’s solutions contribute to the efforts to mitigate global climate change. Our renewable energy solutions reduce carbon emissions by millions of tonnes each year, enabling individuals, organizations, and governments to reduce their carbon footprint. Across our operations and in our supply chain, we continually seek to produce, distribute, deliver, and maintain our materials in ways that will minimize resource consumption and reduce environmental impact.
Almost all water used at SolarEdge operated sites is provided by municipal water supplies. Water from other sources forms a negligible 1% of total water withdrawal.
In general, the activities at all SolarEdge sites and offices are not water intensive. A total of ~110,000 m3 withdrawn by our global operations in 2023 is equivalent to the estimated annual domestic consumption of approximately 1,300 people (based on average consumption in Israel)[1].
Nevertheless, we aim to conserve water wherever possible and use only what is strictly needed to support our teams in our global sites and offices. In several of our locations, we conserve water through water-saving devices on faucets and showers, and low-flow water flush mechanisms in our bathrooms, and leak detection systems.
As mentioned above, our Sella 1 site recently reduced water use significantly by eliminating most of the need for washing product components with deionized water. Before this change, the de-ionized washing water was maintained in a closed cycle, entirely separate from the site’s wastewater system. Approximately 3,000 m3 of water (estimated) was reused in this manner at Sella 1 in 2023.
The Sella 2 site, which opened in 2022 and significantly expanded its production in 2023, is also highly efficient in water usage patterns. The site implemented a coolant circulation system that allows for almost all water used in its cooling tower to be reused through thousands of repeated process cycles each year, greatly diminishing the quantity of any related wastewater.
About 9% of our entire 2023 global water consumption was internally recycled or reused.
Water Efficiency
We continued to expand our on-site renewable generation capacity throughout 2023 by installing SolarEdge PV systems on the rooftops of three Company sites - Sella 2 (Korea), Umbertide (Italy), and our U.K. offices in London. SolarEdge now has five of its own PV systems on its rooftops, partially replacing fossil-fuel based electricity consumption in South Korea, the United States, Italy, the U.K, and Israel. The installed systems have a combined capacity of approximately 3.6 MWp. We aim to install an additional SolarEdge PV system at our Reno, Nevada site
in the U.S. during 2024.
We implemented an innovative electricity savings method at the Sella 2 site. The production process of lithium-ion batteries involves using a significant amount of electricity in the charge/discharge cycles of battery formation. The technical limitations of the traditional battery production process often cause this electricity to be discharged without reusage. In contrast, the new method planned for Sella 2 production is designed to use an innovative electricity reservoir, allowing for an estimated 50% of the discharged electricity to be reused.
In Mid-2022, our Sella 1 manufacturing site in Israel transitioned to purchasing all of its external electricity needs from a recently opened private power plant. This private power plant produces its electricity using a highly efficient process that employs natural gas exclusively for combustion. It has a significantly improved carbon intensity compared to the general grid electricity in Israel, which still includes partial combustion of coal. The related Scope 2 emission reduction has been fully realized in 2023, which was the first year in which all Sella 1 external electricity was purchased from this private plant.
Smart energy-saving systems, such as motion detectors, were installed in the R&D Center in Modiin, Israel. These systems help to reduce AC and lighting power consumptions.
Updated energy consumption procedures were initiated and communicated to employees in our Umbertide (Italy) manufacturing site during 2023. These included shutting down computer equipment and lighting when not in use and setting an optimal AC temperature setting.
External operational energy experts were brought in to lead an energy survey of our Israel based sites (Sella 1, Modiin and Herzliya). They collaborated with relevant company personnel to thoroughly examine energy use, the efficiency of related site systems, and potential areas for improvement. The survey affirmed robust energy management practices in all surveyed sites, while also identifying potential steps for further improvement, which will be considered by the Company moving forward.
To complement the previous steps, we aim to examine additional opportunities for integrating renewable energy in other areas of our operations.
Despite these efforts, our 2023 absolute Scope 1+2 emissions increased to 52,822 tonnes CO2e, compared with 42,086 tonnes CO2e in 2022 (an increase of 26%). Similarly, our Scope 1+2 emission intensity (emission per revenues) rose by 31% in 2023 in comparison to 2022. The vast majority of the 2023 emission increase was related to electricity and natural gas consumption at the Sella 2 site in Korea, which began operations in May 2022 and significantly increased production during 2023. Despite the innovative electricity saving measures we initiated at the site (described above), the manufacturing of battery cells and batteries is generally more energy intense than the manufacturing of our PV system products. Energy consumption and emissions at the Sella 2 site could potentially increase further, as the site commenced 24-hour operation in the latter part of 2023. Additional energy saving measures are planned in order to mitigate this trend. The new PV installation at the Sella 2 site contributes to emission avoidance, but can only supply a minor part of the site’s annual power needs. Our research has shown that the current unfavorable prices and low market availability of renewable energy certificates in South-Korea do not currently allow a viable path to purchasing such certificates to cover the site’s power needs.
The 2025 reduction target issued in previous reports (30% reduction of Scope 1+2 emissions per revenue) referred to 2020 as the base year for emission reduction. However, these 2020 base emissions did not reflect our recent expansion, emphasizing the 2022-2023 addition of South Korea sites, and potential further production increase at Sella 2 in 2024. Our South Korean sites (Sella 2 and Nonsan) accounted for over 70% of the Company’s Scope 1+2 emissions in 2023.
We therefore set an updated short-term absolute emission reduction target: 5% reduction in absolute Scope 1+2 GHG emissions by 2025, in comparison to that of 2023, excluding our South-Korean sites. Once Sella 2 reaches its full production capacity and our base energy consumption stabilizes, we aim to set an updated global reduction target, to include the Korean sites and reflect a longer period.
As part of our commitment to minimize negative environmental impact, we are taking several steps and continue to search for GHG emission reduction opportunities that will allow us to progress towards our target:
Working to Reduce the GHG Emissions of our Operations
Our Sella 2 site in South-Korea uses NMP (N-Methyl-2-Pyrrolidone) as a solvent for lithium-ion battery cell production. The site has set up an efficient NMP purification system, which allows to purify and reuse approximately 90% of the NMP material.
This system significantly reduces the need to send NMP for external purification and/or to hazardous waste treatment. This results in greater resource efficiency, and an overall reduced environmental impact.
Solvent Purification and Reusage in Sella 2
We fully comply with all environmental (and other) regulations that apply in all regions where we operate. To date, SolarEdge has not experienced a single environmental incident that resulted in any retaliatory steps from regulators in any country. We have not been subject to any fines, penalties or sanctions related to environmental regulations.
Environmental Compliance of our Operations
New and highly efficient machinery such as chillers, air blowers, air treatment systems and lighting, all designed to achieve high usage efficiencies and minimize energy consumption
Site personnel engagement in continuous monitoring and control of site conditions and change of external climate to adjust the operating terms accordingly and preserve energy. For example, recent improvements were made to the site’s heating, ventilation, and air-conditioning (HVAC) operation system algorithm which enabled the reduction of about one third of its previous energy consumption.
Establishment of an automatic shut-down routine for AC and lightning for weekends, when the site is not operating.
Site personnel recently eliminated most of the need for washing components with deionized water by changing some of the products specification. As a result, the site has decreased its consumption of both water and mixed bed filter material.
Our Sella 1 manufacturing site in Israel began full operation in 2021. The site was designed to operate at high levels of energy and resource efficiency, with continuous improvements facilitated through advanced operation and monitoring systems. Existing and newly improved features include:
Resource Efficiencies at our Sella 1 Facility
We fully comply with all environmental (and other) regulations that apply in all regions where we operate. To date, SolarEdge has not experienced a single environmental incident that resulted in any retaliatory steps from regulators in any country. We have not been subject to any fines, penalties or sanctions related to environmental regulations.
Environmental Compliance of our Operations
[1]
Source: Mei-Avivim water corporation- Average annual water consumption per person in Israel in ~80 m3.
Join the SolarEdge Conversation
Contact our sustainability / ESG team
Contact us
How can we help you?
Our Sella 2 site in South-Korea uses NMP (N-Methyl-2-Pyrrolidone) as a solvent for lithium-ion battery cell production. The site has set up an efficient NMP purification system, which allows to purify and reuse approximately 90% of the NMP material.
This system significantly reduces the need to send NMP for external purification and/or to hazardous waste treatment. This results in greater resource efficiency, and an overall reduced environmental impact.
Solvent Purification and Reusage in Sella 2
Despite these efforts, our 2023 absolute Scope 1+2 emissions increased to 52,822 tonnes CO2e, compared with 42,086 tonnes CO2e in 2022 (an increase of 26%). Similarly, our Scope 1+2 emission intensity (emission per revenues) rose by 31% in 2023 in comparison to 2022. The vast majority of the 2023 emission increase was related to electricity and natural gas consumption at the Sella 2 site in Korea, which began operations in May 2022 and significantly increased production during 2023. Despite the innovative electricity saving measures we initiated at the site (described above), the manufacturing of battery cells and batteries is generally more energy intense than the manufacturing of our PV system products. Energy consumption and emissions at the Sella 2 site could potentially increase further, as the site commenced 24-hour operation in the latter part of 2023. Additional energy saving measures are planned in order to mitigate this trend. The new PV installation at the Sella 2 site contributes to emission avoidance, but can only supply a minor part of the site’s annual power needs. Our research has shown that the current unfavorable prices and low market availability of renewable energy certificates in South-Korea do not currently allow a viable path to purchasing such certificates to cover the site’s power needs.
The 2025 reduction target issued in previous reports (30% reduction of Scope 1+2 emissions per revenue) referred to 2020 as the base year for emission reduction. However, these 2020 base emissions did not reflect our recent expansion, emphasizing the 2022-2023 addition of South Korea sites, and potential further production increase at Sella 2 in 2024. Our South Korean sites (Sella 2 and Nonsan) accounted for over 70% of the Company’s Scope 1+2 emissions in 2023.
We therefore set an updated short-term absolute emission reduction target: 5% reduction in absolute Scope 1+2 GHG emissions by 2025, in comparison to that of 2023, excluding our South-Korean sites. Once Sella 2 reaches its full production capacity and our base energy consumption stabilizes, we aim to set an updated global reduction target, to include the Korean sites and reflect a longer period.
We continued to expand our on-site renewable generation capacity throughout 2023 by installing SolarEdge PV systems on the rooftops of three Company sites - Sella 2 (Korea), Umbertide (Italy), and our U.K. offices in London. SolarEdge now has five of its own PV systems on its rooftops, partially replacing fossil-fuel based electricity consumption in South Korea, the United States, Italy, the U.K, and Israel. The installed systems have a combined capacity of approximately 3.6 MWp. We aim to install an additional SolarEdge PV system at our Reno, Nevada site
in the U.S. during 2024.
We implemented an innovative electricity savings method at the Sella 2 site. The production process of lithium-ion batteries involves using a significant amount of electricity in the charge/discharge cycles of battery formation. The technical limitations of the traditional battery production process often cause this electricity to be discharged without reusage. In contrast, the new method planned for Sella 2 production is designed to use an innovative electricity reservoir, allowing for an estimated 50% of the discharged electricity to be reused.
In Mid-2022, our Sella 1 manufacturing site in Israel transitioned to purchasing all of its external electricity needs from a recently opened private power plant. This private power plant produces its electricity using a highly efficient process that employs natural gas exclusively for combustion. It has a significantly improved carbon intensity compared to the general grid electricity in Israel, which still includes partial combustion of coal. The related Scope 2 emission reduction has been fully realized in 2023, which was the first year in which all Sella 1 external electricity was purchased from this private plant.
Smart energy-saving systems, such as motion detectors, were installed in the R&D Center in Modiin, Israel. These systems help to reduce AC and lighting power consumptions.
Updated energy consumption procedures were initiated and communicated to employees in our Umbertide (Italy) manufacturing site during 2023. These included shutting down computer equipment and lighting when not in use and setting an optimal AC temperature setting.
External operational energy experts were brought in to lead an energy survey of our Israel based sites (Sella 1, Modiin and Herzliya). They collaborated with relevant company personnel to thoroughly examine energy use, the efficiency of related site systems, and potential areas for improvement. The survey affirmed robust energy management practices in all surveyed sites, while also identifying potential steps for further improvement, which will be considered by the Company moving forward.
To complement the previous steps, we aim to examine additional opportunities for integrating renewable energy in other areas of our operations.
As part of our commitment to minimize negative environmental impact, we are taking several steps and continue to search for GHG emission reduction opportunities that will allow us to progress towards our target:
Working to Reduce the GHG Emissions of our Operations
Resource Efficiencies at our Sella 1 Facility
New and highly efficient machinery such as chillers, air blowers, air treatment systems and lighting, all designed to achieve high usage efficiencies and minimize energy consumption
Site personnel engagement in continuous monitoring and control of site conditions and change of external climate to adjust the operating terms accordingly and preserve energy. For example, recent improvements were made to the site’s heating, ventilation, and air-conditioning (HVAC) operation system algorithm which enabled the reduction of about one third of its previous energy consumption.
Establishment of an automatic shut-down routine for AC and lightning for weekends, when the site is not operating.
Site personnel recently eliminated most of the need for washing components with deionized water by changing some of the products specification. As a result, the site has decreased its consumption of both water and mixed bed filter material.
Our Sella 1 manufacturing site in Israel began full operation in 2021. The site was designed to operate at high levels of energy and resource efficiency, with continuous improvements facilitated through advanced operation and monitoring systems. Existing and newly improved features include:
Almost all water used at SolarEdge operated sites is provided by municipal water supplies. Water from other sources forms a negligible 1% of total water withdrawal.
In general, the activities at all SolarEdge sites and offices are not water intensive. A total of ~110,000 m3 withdrawn by our global operations in 2023 is equivalent to the estimated annual domestic consumption of approximately 1,300 people (based on average consumption in Israel)[1].
Nevertheless, we aim to conserve water wherever possible and use only what is strictly needed to support our teams in our global sites and offices. In several of our locations, we conserve water through water-saving devices on faucets and showers, and low-flow water flush mechanisms in our bathrooms, and leak detection systems.
As mentioned above, our Sella 1 site recently reduced water use significantly by eliminating most of the need for washing product components with deionized water. Before this change, the de-ionized washing water was maintained in a closed cycle, entirely separate from the site’s wastewater system. Approximately 3,000 m3 of water (estimated) was reused in this manner at Sella 1 in 2023.
The Sella 2 site, which opened in 2022 and significantly expanded its production in 2023, is also highly efficient in water usage patterns. The site implemented a coolant circulation system that allows for almost all water used in its cooling tower to be reused through thousands of repeated process cycles each year, greatly diminishing the quantity of any related wastewater.
About 9% of our entire 2023 global water consumption was internally recycled or reused.
Water Efficiency
SolarEdge’s solutions contribute to the efforts to mitigate global climate change. Our renewable energy solutions reduce carbon emissions by millions of tonnes each year, enabling individuals, organizations, and governments to reduce their carbon footprint. Across our operations and in our supply chain, we continually seek to produce, distribute, deliver, and maintain our materials in ways that will minimize resource consumption and reduce environmental impact.
Climate Change Mitigation & Resource Efficiency
Sustainability Report 2023 /