Canadian energy storage products manufacturer Eguana Technologies has signed a new supply agreement with German firm Sonnenbatterie for solar energy storage products.

As per the agreement, Eguana will manufacture for Sonnenbatterie a fully integrated electronics enclosure that meet smart grid standards for all the residential energy storage markets.

In addition to the Bi-Direx power inverter, the Canadian firm will integrate additional functionality that is currently sourced by Sonnenbatterie from outside suppliers to enable a less complex platform that can be easily assembled close to local demand.

Scope of the agreement also calls for an amendment in the supply and license agreements to include US residential applications, in addition to European markets currently served by the German firm.

Eguana has already supplied over 1,000 Bi-Direx units to Sonnenbatterie since entering into the first supply agreement in May, 2013.

Eguana CEO Michael Carten said the new agreement will result in costs reduction and better operating efficiencies for products to meet the specialized requirements of each local market.

"The agreement levers our core competencies in power electronics and supply chain management to increase top line revenue and margin per unit sale." Carten added.