Enphase Boosts US Production of Solar Microinverters, Batteries

• Enphase Energy ships 6.5M microinverters, boosting solar projects with domestic content and achieving a $29.7M profit turnaround.

Enphase Energy Inc has announced the shipment of over 6.5 million microinverters and 50 MWh of batteries from its US manufacturing facilities. This includes one million microinverters with higher domestic content, aiding solar projects in qualifying for the Inflation Reduction Act’s Domestic Content Bonus Credit. The company began shipping IQ8HC Microinverters from South Carolina and Texas in 2023 and plans to ship IQ Battery 5Ps from the US by late 2024. Additionally, Enphase has started shipping IQ8X and IQ8P-3P Commercial Microinverters with increased domestic content.

In its first-quarter report, Enphase revealed a net profit of USD 29.7 million, reversing a net loss of USD 16.1 million from the previous year, with a non-GAAP gross margin of 48.9%. Excluding the net IRA benefit, the margin was 38.3%. The company shipped approximately 1.53 million microinverters, equivalent to 688.5 MW DC, and 170.1 MWh of batteries during the quarter. For the second quarter, Enphase projects a non-GAAP gross margin between 44% and 47%, or 35% to 38% excluding the net IRA benefit, factoring in a new tariff impact of about two percentage points.

How is Enphase Energy leveraging domestic content for IRA bonus credits?

• Enphase Energy is increasing the domestic content in its products to qualify for the Inflation Reduction Act’s Domestic Content Bonus Credit, which provides financial incentives for using U.S.-made components.
  
• The company has started shipping microinverters with higher domestic content from its manufacturing facilities in South Carolina and Texas.
  
• Enphase plans to expand its domestic manufacturing capabilities by beginning shipments of the IQ Battery 5Ps from the U.S. by late 2024.
  
• The company is also shipping IQ8X and IQ8P-3P Commercial Microinverters with increased domestic content to further leverage the IRA bonus credits.
• By enhancing domestic content, Enphase aims to reduce reliance on imported components, potentially lowering costs and improving supply chain resilience.
• The strategic focus on domestic manufacturing aligns with broader industry trends towards localizing production to meet regulatory requirements and capture available incentives.
• Enphase's efforts to increase domestic content are part of a broader strategy to enhance profitability and competitiveness in the U.S. market.