Enphase Energy Inc. (NASDAQ:ENPH) signed a new safe harbor agreement with a solar and battery financing company in early August, expected to bring in about $50 million in revenue. The deal strengthens Enphase's role in the third-party ownership (TPO) segment, which includes leases and power purchase agreements for homeowners.
The agreement covers U.S.-made IQ8HC microinverters and ensures eligibility for investment tax credits and domestic content bonuses under current rules. By locking in these incentives now, developers can safeguard projects from possible policy shifts.
Ken Fong, senior vice president and general manager for the Americas and APAC at Enphase, said safe harbor deals are vital to keeping solar projects viable despite changing policy. "These agreements allow developers and financiers to move forward with confidence, safeguard project economics, and accelerate clean energy deployment," he said.
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The announcement followed new guidance from the U.S. Treasury and IRS, which scrapped the long-standing "5% safe harbor" for large-scale projects. Developers of systems above 1.5 megawatts must now show measurable progress to qualify for credits, while smaller projects remain eligible under the old rules.
The clarification boosted solar stocks on Monday. First Solar Inc. (NASDAQ:FSLR) jumped more than 10%, while Sunrun Inc. (NASDAQ:RUN) and Nextracker Inc. (NASDAQ:NXT) also advanced.
The policy clarity provides momentum for renewable energy but also imposes tighter standards on large wind projects. Investors seeking sector exposure without single-stock volatility continue to turn to ETFs, which spread risk while capturing upside from clean energy growth.
Related ETFs: Invesco Solar ETF (NYSE:TAN), iShares Global Clean Energy ETF (NASDAQ:ICLN).
Price Action: ENPH shares are trading higher by 1.57% to $36.33 at last check Tuesday.
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