Expanded Safe Harbor Agreement Secures $55M Revenue Stream for Enphase and TPO Providers
Enphase Energy’s newly expanded safe harbor agreement with a top third-party ownership (TPO) solar financing company marks a significant move, securing an expected $55 million in revenue over the next two quarters. This arrangement builds on their prior partnership following the One Big Beautiful Bill Act, cementing Enphase’s position as a pivotal player for TPO partners navigating shifting solar tax credit policies.
Deal Drives Confidence Amid Complex Policy Landscape
With ongoing changes in U.S. energy tax credits, the new safe harbor deal provides much-needed certainty. It enables TPO partners—who deliver leases and power purchase agreements—to lock in investment tax credit (ITC) eligibility for upcoming projects, helping them sidestep future regulatory shifts. The revenue is mostly anticipated in Q1 2026, positioning Enphase to benefit from accelerated project pipelines and higher near-term deployments.
| Agreement Partner | Projected Revenue | Main Benefit | Deployment Timeline |
|---|---|---|---|
| Leading TPO Solar Financier | $55 Million | Secures ITC, Domestic Bonus Eligibility | Q4 2025–Q1 2026 (Majority in Q1 2026) |
Enphase Microinverters Poised for Domestic Content Bonus Credit
This agreement paves the way for expanded deployments of Enphase’s U.S.-manufactured IQ8™ Microinverters. When combined with other American-made solar equipment, these microinverters help TPO providers qualify for the lucrative domestic content bonus tax credit—another factor spurring deal activity as policy continues to emphasize American manufacturing.
Enphase’s flexibility in supporting both 5% safe harbor and the physical work test methods offers added strategic options for TPO customers, allowing adaptation to diverse project sizes and development timelines.
U.S. Manufacturing Ramp-Up Supports Market Share and Bonus Credits
To meet this demand, Enphase is expanding its domestic manufacturing footprint. Their IQ8HC™ microinverters with the "DOM" suffix, specifically designed for domestic content compliance, directly address new U.S. sourcing requirements and enhance eligibility for bonus credits under evolving tax regimes.
| Product | Manufacturing Location | Tax Credit Benefit | Project Eligibility |
|---|---|---|---|
| IQ8HC™ Microinverters (DOM SKU) | United States | ITC + Domestic Content Bonus | TPO Projects Using U.S. Equipment |
Forward-Looking Pipeline and Ongoing Policy Support
Enphase expects more such safe harbor deals in the near future, underscoring its ability to deliver value in an environment where tax policy is critical to solar development. With over 84.8 million microinverters shipped and more than 5 million Enphase-powered systems deployed globally, the company remains a leader in solar technology innovation and scale.
Project developers are urged to consult their advisors on eligibility requirements, but with new IRS guidance and FEOC compliance on key products, Enphase stands out as a partner prepared for policy evolution.
Takeaway: Policy Alignment and Manufacturing Flexibility Give Enphase an Edge
The latest agreement positions Enphase and its partners at the center of the policy-driven solar surge. By locking in tax incentives, qualifying for new bonus credits, and ramping up U.S. manufacturing, Enphase isn’t just securing revenue—it’s strengthening its competitive moat as developers look for partners who can offer certainty in an uncertain market.
Investors and project leaders may want to watch Enphase’s next moves as safe harbor strategies, domestic sourcing, and bonus credits shape the future of U.S. solar growth.
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