Enphase begins US shipments of battery system with domestic content

FREMONT, Calif. - Enphase Energy, Inc. (NASDAQ:ENPH), a $5 billion market cap energy technology company with strong financial health indicators including a healthy current ratio of 1.97, announced Wednesday it has started initial shipments of its IQ Battery 10C from manufacturing facilities in the United States, targeting the growing third-party ownership market.

The battery system includes domestically sourced or manufactured components designed to help projects qualify for federal tax credits under the domestic content bonus provisions. According to the company, which generated $1.48 billion in revenue over the last twelve months with a solid 32.77% gross margin, the IQ Battery 10C meets the current 45% U.S.-sourced materials threshold required by the federal budget law signed in July 2025, and will also meet anticipated future thresholds of 50% in 2026 and 55% in 2027. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value metrics.

Enphase reported that the battery has already been added to approved vendor lists for several major third-party ownership providers. The company stated that installers and developers can "safe harbor" these domestically produced batteries to help future projects maintain eligibility for both the base investment tax credit and the domestic content bonus credit.

The IQ Battery 10C is part of Enphase’s recently launched fourth-generation battery system, which also includes the IQ Meter Collar and IQ Combiner 6C. According to the press release, the IQ Meter Collar has been approved by dozens of major utilities across 17 states.

Ken Fong, senior vice president and general manager of the Americas and APAC at Enphase Energy, said the launch "strengthens our domestic supply chain while helping installers, developers, and TPO providers maximize tax credit opportunities."

The company noted that the domestic content batteries can be ordered through Enphase distribution partners with specific SKU numbers, and advised project developers to consult their own legal and tax advisors regarding tax credit eligibility.

This article is based on a press release statement from Enphase Energy. InvestingPro subscribers have access to 13 additional key insights about Enphase Energy, including detailed analysis of its financial health, profitability metrics, and growth prospects. Get access to the comprehensive Pro Research Report, available for over 1,400 US stocks, to make more informed investment decisions.

In other recent news, Enphase Energy announced a new safe harbor agreement with a solar financing firm, expected to generate approximately $50 million in revenue. This agreement, involving Enphase’s U.S.-manufactured IQ8HC Microinverters, supports future solar projects in maintaining eligibility for investment tax credits. Additionally, Enphase Energy’s products have been certified compliant with the European Union’s cybersecurity requirements ahead of the 2025 deadline, ensuring adherence to new standards for connected devices.

Jefferies recently upgraded Enphase Energy from Underperform to Hold, citing positive Treasury guidance for residential solar, and raised the price target to $36.00. This follows a previous downgrade where Jefferies lowered the price target to $28.00 while maintaining an Underperform rating, suggesting that investors might find better entry points in the future. Meanwhile, President Donald Trump reiterated his criticism of renewable energy sources, including solar power, highlighting concerns about economic impacts. These developments reflect the dynamic landscape in which Enphase Energy operates, with both regulatory compliance and market perceptions playing crucial roles.

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