Enphase signs $50 million safe harbor deal with solar financing firm

Published 19/08/2025, 13:14
Enphase signs $50 million safe harbor deal with solar financing firm

FREMONT, Calif. - Enphase Energy, Inc. (NASDAQ:ENPH), currently trading at $35.77 and showing strong financial health with more cash than debt on its balance sheet according to InvestingPro, announced Tuesday a new safe harbor agreement with a leading solar and battery financing company that offers third-party ownership arrangements to homeowners. The deal, signed in early August, is expected to generate approximately $50 million in revenue for Enphase, adding to its current annual revenue of $1.48 billion.

This marks the second such agreement since the new U.S. federal budget bill was enacted in July 2025. The agreement covers Enphase’s U.S.-manufactured IQ8HC Microinverters, which will help future solar projects maintain eligibility for both the base investment tax credit and the domestic content bonus credit.

Safe harbor agreements allow solar companies to secure current tax credit qualifications and mitigate risks associated with potential future policy changes. The arrangement specifically involves microinverters with domestic manufacturing designation SKUs.

"These agreements allow developers and financiers to move forward with confidence, safeguard project economics, and accelerate clean energy deployment," said Ken Fong, senior vice president and general manager of the Americas and APAC at Enphase Energy, according to the company’s press release.

The agreement highlights Enphase’s participation in the third-party ownership segment, which includes leases and power purchase agreements for residential solar installations. Enphase indicated it anticipates additional financing providers to establish similar arrangements in coming months.

Enphase Energy, based in Fremont, California, manufactures microinverter-based solar and battery systems. With a market capitalization of $4.69 billion and a current ratio of 1.97, indicating strong liquidity, the company has shipped approximately 83.1 million microinverters, with more than 4.9 million Enphase-based systems deployed globally.

In other recent news, Enphase Energy has been the focus of multiple analyst adjustments and product launches. The company reported financial results that included in-line revenue and better-than-expected margins and earnings per share, leading Oppenheimer to lower its price target to $77 while maintaining an Outperform rating. Northland also adjusted its price target to $52 due to weaker revenue guidance, despite Enphase surpassing consensus earnings expectations by $0.06 per share. Jefferies lowered its price target for Enphase to $28, citing several factors that need alignment for the stock to find support, and maintained an Underperform rating.

In terms of product developments, Enphase launched its 4th-generation Energy System, which includes the IQ Battery 10C, offering 10 kWh of usable energy and improved energy density. The company also began shipping its powerful IQ8P Microinverters to Italy and Switzerland, designed to support high-powered solar modules. These recent developments highlight Enphase’s ongoing efforts in product innovation amidst changing market conditions.

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