Enphase Energy products comply with EU cybersecurity rules

FREMONT, Calif. - Enphase Energy, Inc. (NASDAQ:ENPH), currently trading at $35.68 and identified as undervalued by InvestingPro analysis, announced Thursday that all its products subject to the European Union’s Radio Equipment Directive (RED) Article 3.3 cybersecurity requirements have been certified compliant ahead of the August 1, 2025 implementation deadline. Despite facing market challenges with a 70% decline over the past year, the company maintains strong financial health with a current ratio of 1.97.

The new RED requirements establish cybersecurity foundations for connected devices sold in the EU, with specific standards for energy systems with wireless capabilities designed to strengthen network security and protect user data.

A recent SolarPower Europe report highlighted growing risks from unsecured inverter systems and their potential threat to European grid reliability, calling for harmonized cybersecurity standards to protect solar homeowners and infrastructure.

"Cybersecurity and the protection of our customers remain core priorities at Enphase," said Ravi Pervela, senior vice president of cloud, security and HEMS at Enphase Energy. "We take a proactive, transparent approach to security, working closely with industry partners and third-party experts."

Several European installers of Enphase products expressed support for the company’s cybersecurity measures. Jannik Schall, chief product officer at 1KOMMA5°, noted that Enphase "consistently maintains security standards across its home energy systems," while Laurens Knapen, CEO of Green Guys B.V., emphasized that cybersecurity "absolutely matters" when choosing solar systems.

Enphase Energy, based in Fremont, California, supplies microinverter-based solar and battery systems, with approximately 83.1 million microinverters shipped and more than 4.9 million Enphase-based systems deployed globally. The company maintains healthy profit margins of 32.77% and holds more cash than debt on its balance sheet, according to InvestingPro data, which offers 14 additional exclusive insights about the company’s financial health and market position through its comprehensive Pro Research Report.

In other recent news, Enphase Energy, Inc. announced a new safe harbor agreement with a solar financing firm, expected to generate approximately $50 million in revenue. This agreement involves Enphase’s U.S.-manufactured IQ8HC Microinverters, which will help future solar projects maintain eligibility for investment tax credits. Additionally, Enphase launched its 4th-generation Energy System featuring the IQ Battery 10C, offering enhanced energy density and reduced space requirements. The company also began shipping its most powerful microinverters, the IQ8P, to Italy and Switzerland, designed to support high-powered solar modules.

Meanwhile, Jefferies lowered its price target for Enphase Energy from $32 to $28, maintaining an Underperform rating. The research firm noted that several factors need to align before the stock gains meaningful support. These developments come amid broader discussions on renewable energy, with President Trump recently criticizing the economic impact of wind and solar power. Enphase’s activities reflect ongoing efforts to innovate and expand its market presence despite industry challenges.

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