Enphase Energy announced that it has expanded a safe‑harbor agreement with a leading U.S. solar financing partner that provides third‑party ownership leases and power‑purchase agreements to homeowners. The expansion is expected to generate roughly $55 million in revenue, with the bulk of the income arriving in the first quarter of 2026 and the remainder in the fourth quarter of 2025.
The new deal builds on a prior safe‑harbor transaction that was announced after the passage of the One Big Beautiful Bill Act in July 2025. By extending the agreement, Enphase is positioning its IQ8 microinverters—particularly the DOM‑suffix models that qualify for domestic‑content bonuses—to help the financing partner secure investment tax credit (ITC) eligibility for future projects. The arrangement is designed to accelerate deployment of residential solar systems under third‑party ownership models, which are expected to grow as the Section 25D tax credit expires at year‑end.
From a business perspective, the expansion strengthens Enphase’s channel relationships and creates a new revenue stream tied directly to the growth of third‑party ownership. It also supports the company’s broader strategy to expand U.S. manufacturing and domestic sourcing, reinforcing its margin‑repair and cost‑reduction initiatives. The deal signals Enphase’s continued focus on capturing the shifting market toward lease and PPA structures, a segment that is poised to expand as policy incentives shift and domestic content requirements tighten.
In financial context, the $55 million represents a modest but meaningful addition to Enphase’s top line. The company reported $356.1 million in revenue for Q1 2025 and $382.7 million for Q4 2024, with non‑GAAP gross margins of 48.9% and 53.2% respectively. Management had guided for Q1 2025 revenue of $340–$380 million and Q4 2025 revenue of $310–$350 million; the new agreement will help meet or exceed those guidance ranges while providing a predictable revenue stream that is not tied to the company’s own sales cycle.
Management emphasized that the expansion is part of Enphase’s broader strategy to capture market share in the growing third‑party ownership space. CEO Badri Kothandaraman noted that the company is “not raising any prices…our position is basically to capture share” and highlighted the importance of U.S. manufacturing and domestic sourcing as key drivers of future growth.
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