Enphase Energy Inc. (NASDAQ:ENPH) said Tuesday it has expanded an existing safe harbor agreement with a leading solar financing company that provides third-party ownership (TPO) options, including leases and power purchase agreements, to U.S. homeowners.
The expanded arrangement builds on a prior transaction announced after the One Big Beautiful Bill Act was enacted in July 2025, highlighting Enphase's continued collaboration with established TPO partners.
The company expects the agreement to generate about $55 million in revenue across the fourth quarter of 2025 and the first quarter of 2026, with most of that revenue recognized in the first quarter.
Also Read: Enphase Energy Joins GMP To Enable Shared Energy Use And Resilient Home Power
Tax Credit Protection And Policy Flexibility
Safe harboring solar equipment allows developers to lock in eligibility for the federal investment tax credit under current rules while limiting exposure to future policy changes.
Enphase said it can support both the 5% safe harbor and the physical work test approaches, giving TPO providers flexibility depending on project timing and scale.
The agreement is expected to support broader deployment of Enphase's IQ8 Microinverters manufactured in the United States.
Certain IQ8HC Microinverters with a "DOM" SKU suffix, when paired with other U.S.-made components, may also help projects qualify for the domestic content bonus tax credit, aligning with evolving sourcing requirements.
Management Commentary And Outlook
Ken Fong, senior vice president of sales at Enphase Energy, said safe harbor arrangements help partners advance projects more quickly amid policy uncertainty by securing tax credit eligibility and reducing risk, while enabling the scaling of residential and commercial solar deployments supported by Enphase's technology.
Enphase said it expects to enter additional safe harbor agreements in the coming months.
ENPH Price Action: Enphase Energy shares were up 2.96% at $32.29 at the time of publication on Tuesday, according to Benzinga Pro data.
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