Enphase Energy Announces Second New Safe Harbor Agreement

Rhea-AI Summary

Enphase Energy (NASDAQ: ENPH) has secured its second safe harbor agreement with a leading solar and battery financing company, expected to generate $50 million in revenue. The agreement focuses on U.S.-manufactured IQ8HC™ Microinverters and aims to preserve eligibility for both base investment tax credit (ITC) and domestic content bonus credit.

This strategic move follows the new U.S. federal budget bill signed in July 2025 and strengthens Enphase's position in the third-party ownership (TPO) segment, which includes leases and power purchase agreements. The company anticipates additional financing providers to join with similar agreements in the coming months.

Positive

• New safe harbor agreement expected to generate $50 million in revenue
• Strategic positioning in the growing TPO segment for residential solar and batteries
• Agreement preserves tax credit eligibility including ITC and domestic content bonus
• Additional financing providers expected to sign similar agreements

Negative

• Success dependent on future policy changes and tax credit qualifications
• Revenue generation timeline not specified in the agreement

Insights

Financial Analyst

Enphase secures $50M revenue deal that strengthens market position amid favorable policy changes for domestically-manufactured solar components.

Enphase's announcement of a second safe harbor agreement represents a strategic win in the evolving renewable energy landscape. The $50 million revenue-generating deal follows recent federal budget legislation that modified tax incentives for solar projects. What makes this particularly significant is the timing - Enphase is positioning its clients to lock in current tax benefits amid policy fluctuations, creating a compelling value proposition.

The agreement specifically covers Enphase's domestically manufactured IQ8HC™ Microinverters, which qualify for both the base investment tax credit and the domestic content bonus credit. This dual-qualification status gives Enphase a competitive advantage in the third-party ownership (TPO) segment - a channel explicitly described as critical for U.S. residential solar growth.

Most notably, management signals that additional financing providers are likely to follow suit in coming months, suggesting this could be part of a larger revenue opportunity beyond the initial $50 million. The company is effectively leveraging policy changes to create demand urgency, as these agreements allow customers to preserve tax benefits regardless of future regulatory shifts.

This development highlights Enphase's adaptability in capitalizing on policy environments to drive sales while strengthening its position in the TPO market segment - a strategic channel for expanding residential solar adoption through leases and power purchase agreements that reduce upfront costs for homeowners.

FREMONT, Calif., Aug. 19, 2025 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world's leading supplier of microinverter-based solar and battery systems, today announced a new safe harbor agreement with another leading solar and battery financing company that offers third-party ownership (TPO) agreements to homeowners, including leases and power purchase agreements (PPAs). This is the second agreement since the new U.S. federal budget bill was signed into law in July 2025.

The agreement, signed earlier in August, is expected to generate approximately $50 million in revenue for Enphase and underscores the company’s strong participation in the TPO segment – a critical growth channel for U.S. residential solar and batteries.

The safe harbor agreement covers Enphase’s U.S.-manufactured IQ8HC™ Microinverters (with “DOM” SKUs), helping future projects preserve eligibility for both the base investment tax credit (ITC) and the domestic content bonus credit. By safe harboring equipment now, solar companies can lock in current tax credit qualifications and reduce risk from future policy changes.

“Safe harbor agreements are a critical tool for keeping solar projects on track despite changing policy landscapes,” said Ken Fong, senior vice president and general manager of the Americas and APAC at Enphase Energy. “These agreements allow developers and financiers to move forward with confidence, safeguard project economics, and accelerate clean energy deployment. Enphase is committed to supporting every segment of the market, including TPO, as it expands access to affordable, reliable home energy systems.”

Enphase expects additional financing providers to follow suit in the coming months, further expanding the pipeline of TPO safe harbor agreements under the new rules. Project developers should consult their own legal and tax advisors to confirm eligibility for available tax credits. Please visit the website for more information about IQ8HC Microinverters and Enphase manufacturing.

About Enphase Energy, Inc.

Enphase Energy, a global energy technology company based in Fremont, CA, is the world's leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power – and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 83.1 million microinverters, and more than 4.9 million Enphase-based systems have been deployed in over 160 countries. For more information, visit https://enphase.com/.

©2025 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. in the U.S. and other countries. Other names are for informational purposes and may be trademarks of their respective owners.

Forward-Looking Statements

This press release may contain forward-looking statements, including statements related to the ability of financiers and installers to expand deployments of IQ8 Microinverters supplied from manufacturing facilities in the United States; and statements regarding the investment tax credit and the domestic content tax bonus credit. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties including those risks described in more detail in Enphase Energy’s most recently filed Quarterly Report on Form 10-Q, Annual Report on Form 10-K, and other documents filed by Enphase Energy from time to time with the SEC. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

Contact:

Enphase Energy
press@enphaseenergy.com

This press release was published by a CLEAR® Verified individual.

FAQ

What is the value of Enphase Energy's new safe harbor agreement in 2025?

The new safe harbor agreement is expected to generate $50 million in revenue for Enphase Energy.

How many safe harbor agreements has ENPH signed since July 2025?

Enphase Energy has signed two safe harbor agreements since the new U.S. federal budget bill was signed in July 2025.

What products are covered under Enphase's new safe harbor agreement?

The agreement covers Enphase's U.S.-manufactured IQ8HC™ Microinverters (with 'DOM' SKUs).

What tax benefits does ENPH's safe harbor agreement preserve?

The agreement helps preserve eligibility for both the base investment tax credit (ITC) and the domestic content bonus credit.

How does the safe harbor agreement impact Enphase's TPO segment?

The agreement strengthens Enphase's participation in the TPO (third-party ownership) segment, which includes leases and power purchase agreements, representing a critical growth channel for U.S. residential solar and batteries.