1. Enphase expands safe harbor agreement with major solar financing company. 2. Projected revenue from new agreement is $55 million across two quarters. 3. The agreement enhances tax credit eligibility for future projects. 4. Enphase aims to boost production of IQ8 Microinverters in the U.S. 5. Company plans to enter similar agreements shortly.
FAQ
Why Bullish?
The new agreement enhances cash flow and tax credit leverage, promoting growth. Historical precedents show that strategic partnerships in renewables often lead to stock price enhancements.
How important is it?
The article emphasizes significant new revenue and tax strategies, crucial for investor confidence.
Why Short Term?
Immediate revenue recognition supports near-term earnings growth. Historical performance indicates that similar partnerships led to quick gains in stock performance.
Enphase Energy Expands Safe Harbor Agreement with Leading TPO Provider
FREMONT, Calif., Dec. 16, 2025 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ: ENPH), recognized as a global leader in energy technology and microinverter-based solar and battery systems, has announced the expansion of its safe harbor agreement with a prominent solar financing company. This agreement facilitates third-party ownership (TPO) models for homeowners through leases and power purchase agreements (PPAs).
Details of the Expanded Safe Harbor Agreement
The newly enhanced safe harbor agreement builds on a previous transaction made public following the passage of the One Big Beautiful Bill Act in July 2025. This underscores Enphase’s ongoing commitment to collaborating with established TPO partners. The new agreement is anticipated to yield approximately $55 million in revenue during the fourth quarter of 2025 and the first quarter of 2026, with most revenue recognized in Q1 2026.
Benefits of Safe Harbor Agreements
Implementing safe harbor strategies plays a crucial role in preserving investment tax credit (ITC) eligibility for future projects. It also minimizes risks associated with potential policy changes. Enphase can offer flexibility in safe harbor strategies through:
- 5% safe harbor method
- Physical work test method
These strategies cater to TPO customers based on project size and timing, potentially enhancing deployment efficiency.
Product Deployment and Domestic Content Requirements
The expanded agreement is expected to boost deployments of Enphase’s IQ8™ Microinverters sourced from manufacturing facilities within the United States. Additionally, specific models like the Enphase IQ8HC™ Microinverters, especially those with a “DOM” suffix, when combined with other U.S.-manufactured solar equipment, will support TPO providers in qualifying for domestic content bonus tax credits, aligning with evolving U.S. sourcing regulations.
Implications for TPO Providers and Project Developers
Ken Fong, Senior Vice President of Sales at Enphase Energy, emphasized the importance of safe harbor agreements, stating, “These agreements give our partners the confidence to move faster in a complex policy environment. Securing tax credit eligibility by leveraging Enphase microinverters enables TPO providers and developers to scale high-quality residential solar and commercial projects with reduced risk.”
Enphase anticipates entering similar agreements in the upcoming months. Project developers are advised to consult legal and tax advisors to verify eligibility for current tax credits.
About Enphase Energy, Inc.
Enphase Energy is headquartered in Fremont, CA, and is renowned as the world's foremost supplier of microinverter-based solar and battery systems. Their innovative solutions empower users to harness solar energy for personal use, savings, and resale, all managed with a sophisticated mobile application. To date, Enphase has shipped approximately 84.8 million microinverters, with over 5.0 million Enphase-based systems deployed across less than 160 countries.
For further information, please visit Enphase.com.
Forward-Looking Statements
This announcement may include forward-looking statements regarding the capabilities of financers and installers to enhance deployments of IQ8 Microinverters and the anticipated revenue from this new safe harbor agreement. These projections are subject to significant risks and uncertainties, and actual results may vary. For detailed information, please refer to Enphase Energy’s filings with the SEC.
For media inquiries, contact:
Enphase Energy
press@enphaseenergy.com