Enphase Energy Expands Safe Harbor Agreement with a Leading TPO Provider

Rhea-AI Summary

Enphase Energy (NASDAQ: ENPH) expanded a safe harbor agreement with a leading third‑party ownership (TPO) solar financier, building on a prior post‑July 2025 transaction. The agreement is projected to generate approximately $55 million in revenue across Q4 2025 and Q1 2026, with the majority expected in Q1 2026. The safe harbor supports ITC eligibility using 5% safe harbor or physical work test methods and may help qualify for the domestic content bonus when IQ8HC microinverters with “DOM” SKUs are paired with other U.S.‑made equipment. Enphase said the deal will expand IQ8 deployments from U.S. facilities, noted certain products are FEOC compliant under IRS Notice 2025‑08, and expects similar agreements in coming months.

Positive

• $55 million projected revenue across Q4 2025–Q1 2026
• Majority of recognized revenue expected in Q1 2026
• Enables expanded deployments of IQ8 microinverters from U.S. plants
• IQ8HC DOM SKUs can support domestic content bonus eligibility
• Certain products deemed FEOC compliant under IRS Notice 2025‑08

Negative

• Revenue concentrated across two quarters, increasing timing risk
• Outcomes depend on tax law and policy interpretations and eligibility
• Majority recognition timing may create short‑term earnings lumpiness

News Market Reaction

+1.56%

7 alerts

+1.56% News Effect

+$66M Valuation Impact

$4.31B Market Cap

0.1x Rel. Volume

On the day this news was published, ENPH gained 1.56%, reflecting a mild positive market reaction. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $66M to the company's valuation, bringing the market cap to $4.31B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Safe harbor revenue: $55 million 5% safe harbor: 5% Tax code section: 26 U.S.C. Section 7701(a)(51) +1 more

4 metrics

Safe harbor revenue $55 million Projected revenue across Q4 2025 and Q1 2026 from expanded agreement

5% safe harbor 5% Safe harbor method threshold referenced for tax credit eligibility

Tax code section 26 U.S.C. Section 7701(a)(51) Cited for FEOC compliance of certain products

IRS notice Notice 2025-08 Referenced for FEOC compliance for rooftop solar and distributed BESS

Market Reality Check

Price: $36.98 Vol: Volume 5,374,596 is 0.85x...

normal vol

$36.98 Last Close

Volume Volume 5,374,596 is 0.85x the 20-day average of 6,337,736, indicating subdued trading ahead of this news. normal

Technical Price at $31.37 is trading below the $41.12 200-day MA, reflecting a weaker pre-news trend and positioning 59.21% under the 52-week high.

Peers on Argus

Before this announcement, ENPH was down 2.52% with most key solar peers also neg...

Before this announcement, ENPH was down 2.52% with most key solar peers also negative: RUN -4.22%, SEDG -4.8%, CSIQ -1.29%, NXT -1.07%, while JKS rose 1.99%, suggesting mixed but generally weak sector sentiment rather than a clear, unified move.

Historical Context

5 past events · Latest: Dec 03 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 03	Product launch	Positive	+0.9%	Began U.S. shipments of next-generation IQ EV Charger 2 with higher power.
Dec 02	Technology launch	Positive	+1.9%	Introduced PowerMatch in Europe to improve IQ Battery 5P energy use.
Nov 20	Safe harbor deal	Positive	-2.9%	Announced new safe harbor agreement projected to add nearly $68M revenue.
Nov 17	Product approvals	Positive	-4.0%	Expanded IQ Meter Collar approvals with major utilities including PG&E.
Nov 12	Utility partnership	Positive	-0.4%	Partnered with Green Mountain Power on home battery lease program.

Pattern Detected

Recent product and partnership news has often seen muted or negative immediate price reactions, with several positive operational updates followed by divergent share moves.

Recent Company History

Over the last two months, Enphase has focused on product launches and partnerships, including the IQ EV Charger 2 on Dec 3, PowerMatch battery technology in Europe on Dec 2, and multiple safe harbor and utility-related initiatives in November. These updates highlight ongoing product innovation and efforts to align with policy and utility requirements. Price reactions have been mixed, with three of the last five positive news items followed by negative moves, suggesting sentiment and broader solar conditions weighed on the stock despite operational progress.

Market Pulse Summary

This announcement highlights an expanded safe harbor agreement projected to generate $55 million in ...

Analysis

This announcement highlights an expanded safe harbor agreement projected to generate $55 million in revenue across Q4 2025 and Q1 2026, largely in the first quarter. It reinforces Enphase’s alignment with U.S. tax policy through ITC-safe harbor strategies, domestic content positioning, and FEOC-compliant products. Investors may watch for additional similar agreements, actual shipment timing of IQ8 microinverters from U.S. facilities, and how these policy-tailored offerings contribute to revenue consistency against a backdrop of prior mixed market reactions to positive product news.

Key Terms

safe harbor agreement, third-party ownership (TPO), power purchase agreements (PPAs), investment tax credit (ITC), +3 more

7 terms

safe harbor agreement financial

"announced a newly expanded safe harbor agreement with a leading solar financing company"

A safe harbor agreement is a contract clause or separate pact that gives one or more parties protection from certain legal or regulatory risks if they follow agreed rules or meet specified conditions. For investors, it matters because it reduces the chance of costly lawsuits, penalties, or unexpected losses — like a seatbelt or insurance policy that limits harm if everyone follows the safety steps laid out in the deal.

third-party ownership (TPO) financial

"a leading solar financing company that offers third-party ownership (TPO) agreements to homeowners"

Third-party ownership is an arrangement where an outside entity—not the company or the original owner—holds legal rights to an asset, contract, or revenue stream tied to the company. For investors, it matters because that outside ownership can change who collects income, who bears losses, and how transparent and controllable the asset is; think of it like a car you use every day that someone else legally owns, which limits what you can do with it and who benefits from it.

power purchase agreements (PPAs) financial

"including leases and power purchase agreements (PPAs)"

Power purchase agreements (PPAs) are long-term contracts in which a buyer agrees to purchase electricity directly from a specific generator at agreed prices and terms. Like a multi-year subscription for power, PPAs give the seller predictable revenue and the buyer price certainty, which makes energy projects easier to finance and reduces revenue volatility — key factors investors use to assess risk and value.

investment tax credit (ITC) regulatory

"helps preserve investment tax credit (ITC) eligibility on future projects"

An investment tax credit (ITC) is a government incentive that reduces a company’s tax bill by a set percentage of money spent on qualifying capital projects, like equipment or clean energy installations. Think of it as a coupon that cuts taxes dollar-for-dollar for certain investments; it matters to investors because it improves a project’s cash flow and return on investment, can change project economics and valuation, and may influence capital allocation decisions.

physical work test regulatory

"support safe harbor strategies under both the 5% safe harbor and the physical work test methods"

A physical work test is a medical assessment that checks whether a person can perform the physical tasks required by a job or to qualify for disability or workers’ compensation benefits. For investors it matters because results can affect a company’s payroll, insurance costs, legal exposure and productivity—similar to a car inspection revealing whether a vehicle is safe to drive and what repairs will cost.

domestic content bonus tax credit regulatory

"help enable TPO providers to also qualify for the domestic content bonus tax credit"

A domestic content bonus tax credit is an extra tax break governments give when a project or product uses a specified share of materials, components, or labor sourced within the country. For investors it changes the economics of a deal—much like getting a larger rebate for buying local—by boosting after‑tax returns, influencing supply‑chain decisions and the competitiveness or feasibility of capital projects.

distributed bess technical

"utilizing IRS Notice 2025-08 for rooftop solar and distributed BESS"

A distributed BESS (Battery Energy Storage System) is a network of smaller batteries placed near homes, businesses or substations instead of one large central battery. Like having many neighborhood power banks, these batteries store electricity when it’s cheap or abundant and release it when demand or prices rise, helping stabilize the grid, avoid outages, and shave peak costs. Investors care because distributed BESS can create steady revenue from services (like energy arbitrage, backup power and grid support), reduce utility upgrade needs, and tap into policy incentives and growing demand for flexible clean-energy assets.

AI-generated analysis. Not financial advice.

FREMONT, Calif., Dec. 16, 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 newly expanded safe harbor agreement with a leading solar financing company that offers third-party ownership (TPO) agreements to homeowners, including leases and power purchase agreements (PPAs).

The newly expanded safe harbor agreement builds on a prior transaction with this leading TPO provider that was announced after the One Big Beautiful Bill Act passed in July 2025, underscoring Enphase’s strong, continued engagement with established TPO partners. The new agreement is projected to generate approximately $55 million in revenue across the fourth quarter of 2025 and the first quarter of 2026, with the majority expected to be recognized in the first quarter.

Safe harboring equipment helps preserve investment tax credit (ITC) eligibility on future projects under the current tax credit rules and reduces exposure to potential future policy changes. Enphase can support safe harbor strategies under both the 5% safe harbor and the physical work test methods, potentially providing flexibility for TPO customers based on project size and timing.

This agreement is expected to expand deployments of Enphase’s IQ8™ Microinverters supplied from manufacturing facilities in the United States. Enphase IQ8HC™ Microinverters that have SKUs with a “DOM” suffix, when paired with other U.S.-made solar equipment, can help enable TPO providers to also qualify for the domestic content bonus tax credit and align with evolving U.S. sourcing requirements.

“Safe harbor agreements give our partners the confidence to move faster in a complex policy environment,” said Ken Fong, senior vice president of sales at Enphase Energy. “Securing tax credit eligibility by leveraging Enphase microinverters can enable TPO providers and developers to scale high-quality residential solar and commercial projects with less risk. We’re excited to support this growing pipeline as we continue ramping domestic production of Enphase products.”

Enphase expects to enter into similar agreements in the coming months. Project developers should consult their own legal and tax advisors to confirm eligibility for available tax credits. Enphase continues to expand U.S. manufacturing and domestic sourcing to help customers support domestic content objectives where applicable. In addition, certain Enphase microinverters and battery systems are deemed “FEOC compliant” for purposes of 26 U.S.C. Section 7701(a)(51) utilizing IRS Notice 2025-08 for rooftop solar and distributed BESS. To learn more about Enphase “FEOC compliant” products, please visit the website.

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 84.8 million microinverters, and more than 5.0 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; the anticipated revenue from this new safe harbor agreement; the ability of Enphase to generate new business with additional financing providers; and the TPO’s ability to meet eligibility requirements for the ITC and the domestic content tax bonus credits. 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

FAQ

How much revenue will Enphase (ENPH) get from the expanded safe harbor agreement?

Enphase projects about $55 million in revenue across Q4 2025 and Q1 2026, with the majority in Q1 2026.

What does the safe harbor agreement mean for ENPH shareholders?

The deal should boost near‑term revenue and U.S. production deployments, but revenue is concentrated across two quarters which may affect quarterly comparability.

Can Enphase IQ8HC DOM microinverters help qualify for the domestic content bonus for ENPH projects?

Yes; IQ8HC SKUs with a “DOM” suffix, when paired with other U.S.‑made equipment, can help enable domestic content bonus eligibility.

Which quarters will see revenue from the Enphase safe harbor deal for ENPH?

Revenue is projected across Q4 2025 and Q1 2026, with most expected to be recognized in Q1 2026.

Are Enphase products compliant with recent IRS FEOC guidance for rooftop solar and BESS?

Certain Enphase microinverters and battery systems are described as FEOC compliant under 26 U.S.C. Section 7701(a)(51) using IRS Notice 2025‑08.

What are the main risks to ENPH from this agreement?

Key risks are dependence on tax‑credit eligibility determinations and potential policy changes that could affect timing or qualification.