$50 Million Safe Harbor Deal Bolsters Enphase’s Solar Growth Plans
Enphase Energy Inc. (NASDAQ:ENPH) has signed a new safe harbor agreement with a solar and battery financing company, expected to generate about $50 million in revenue. The deal, announced in early August, strengthens Enphase’s presence in the third-party ownership (TPO) segment, which covers leases and power purchase agreements for homeowners.
The agreement applies to Enphase’s U.S.-manufactured IQ8HC microinverters, ensuring they qualify for the federal investment tax credit and the domestic content bonus. By locking in these incentives, developers gain protection from future policy changes that could otherwise threaten project economics.
Ken Fong, Enphase’s senior vice president and general manager for the Americas and APAC, said these arrangements are essential for stability in a shifting policy landscape. “These agreements allow developers and financiers to move forward with confidence, safeguard project economics, and accelerate clean energy deployment,” he noted.
The move follows new guidance from the U.S. Treasury and IRS, which eliminated the long-standing “5% safe harbor” for large-scale projects. Developers of systems above 1.5 megawatts must now demonstrate measurable construction progress to secure credits, while smaller projects remain eligible under the older rules. The clarification buoyed renewable energy stocks earlier this month, with First Solar (NASDAQ:FSLR) surging over 10% and peers Sunrun (NASDAQ:RUN) and Nextracker (NASDAQ:NXT) also advancing.
For Enphase, the deal underscores its strategy of expanding into TPO financing structures and reinforcing its U.S.-made product line. The Fremont, California-based company has shipped more than 83 million microinverters across 4.9 million systems worldwide and maintains a strong balance sheet, with more cash than debt and a market cap of $4.7 billion.
Recent product rollouts—including the fourth-generation Enphase Energy System and the IQ8P microinverter shipments to Europe—highlight the company’s continued innovation. Analysts remain divided: while Oppenheimer maintains an “Outperform” rating despite lowering its target to $77, Jefferies cut its target to $28 with an “Underperform” view, citing near-term challenges.
Still, the safe harbor agreement adds momentum to Enphase’s clean energy growth strategy, positioning the company to benefit from U.S. policy incentives while managing regulatory uncertainty.
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