Enphase Energy announced a new safe‑harbor agreement that will generate roughly $68 million in revenue over the next 12‑24 months, beginning in 2026. The deal, the company’s third since the July 2025 federal budget law, covers the IQ9 microinverter for residential projects and will see units shipped in the first quarter of 2026. The agreement was signed with a leading third‑party ownership (TPO) provider, whose identity was not disclosed in the announcement.
The $68 million projection reflects the value of the ITC and domestic‑content bonus that the agreement locks in for developers and financing partners. By securing current tax‑credit eligibility, the deal reduces the risk of future policy changes and encourages investment in U.S. solar and battery installations, aligning with the IRA’s Section 45X advanced‑manufacturing production tax credit that favors U.S.‑manufactured components.
Enphase’s Q3 2025 earnings underscored the company’s strong execution: revenue rose to $410.4 million, beating the $373.12 million consensus by $37.3 million, while non‑GAAP EPS of $0.90 surpassed the $0.66 estimate by $0.24. The beat was driven by robust demand in the U.S. market and disciplined cost management, offsetting higher operating expenses and tariff headwinds that pressured margins.
Despite the earnings beat, the market reacted negatively because Enphase guided for Q4 2025 revenue of $310 million to $350 million—well below the $374.4 million consensus—and a gross‑margin range of 40.0 %–43.0 % (GAAP). Management cited softer demand in Europe and elevated operating costs, including a five‑percentage‑point tariff headwind, as reasons for the cautious outlook. The guidance signals concern about near‑term demand while the company remains confident in its U.S. growth trajectory.
Ken Fong, senior vice president of sales, said the safe‑harbor agreements “allow developers and financing partners to move quickly and confidently in a shifting policy environment. This type of agreement can help our customers secure tax‑credit eligibility for new residential projects and supports the rollout of IQ9 microinverters.” The partnership positions Enphase to capture additional U.S. market share and benefit from domestic‑content incentives while navigating the current European demand softness and tariff challenges.
The safe‑harbor agreement adds a predictable revenue stream that complements Enphase’s strong U.S. performance. However, the company’s cautious Q4 guidance highlights the need to manage European demand headwinds and tariff impacts. The deal strengthens Enphase’s financial position and supports its strategy to expand U.S. manufacturing and secure tax‑credit eligibility for residential solar projects.
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