April 23 (Reuters) - Solar inverter maker Enphase Energy ( ENPH )

projected second-quarter revenue below analysts'

estimates on Tuesday, in a sign of sluggish recovery in demand

across its markets.

The Fremont, California-based company forecast revenue in

the range of $290 million to $330 million for the quarter ending

June, compared with analysts' average estimate of $348.6

million, according to LSEG data.

Rising inventory levels in Europe and a metering reform in

top U.S. market California have dented demand for Enphase's

inverters used in residential solar units.

The metering reform has lowered credit that households with

rooftop solar panels received for transferring excess power to

the grid.

Elevated interest rates, which have raised the payback

period for investment in solar, are also hurting demand.

Enphase said in February it expects inventory levels to

normalize and demand for its products to pick up by the end of

the second quarter.

Microinverter shipments fell 71% to about 1.38 million in

the first quarter from a year earlier.

Revenue of $263.3 million missed analysts' average estimate

of $279.8 million.

The company had cut its workforce by 10% last year and

reduced its manufacturing capacity to clear its excess

inventory.