Enphase Energy, a specialist in microinverter-based solar and battery systems it is increasing production and deployment of microinverters and batteries with higher domestic content than previous models.
In July of 2024 the company announced that certain IQ8 microinverters when paired with other U.S.-made solar equipment could qualify for the domestic content bonus tax credit under the Inflation Reduction Act (IRA). Those microinverters come with stock keeping units (SKU) that have a “DOM” suffix, indicating the increased amount of domestic content.
Months later Enphase announced that its IQ Battery 5Ps increased domestic content and would also feature the SKU with the DOM suffix.
The qualifying microinverters and batteries are manufactured in plants in South Carolina and Texas. The company has a manufacturing partnership with Flex in South Carolina and with Salcomp in Texas.
Enphase reports that more than 6.5 million IQ Microinverters and 50 MWh of IQ batteries made in the U.S. have been deployed and it recently began shipping those with enhanced domestic content.
“Microinverters and batteries now shipping from the U.S. have strengthened our offerings,” said Brad Spernak, managing member and chief technology officer at ProSolar, an installer of Enphase products. “These products enable us to take on a broader range of projects, including those requiring domestic components.”
Enphase’s manufacturing facility in Texas is highlighted in this video.
In January the company announced that its IQ8 Microinverters for residential and commercial applications were in compliance with the Build America, Buy America (BABA) Act. With this compliance, Enphase microinverters made at its U.S. contract manufacturing facilities used in federal infrastructure projects are now eligible for participation in programs including the Environmental Protection Agency’s (EPA) $7 billion Solar for All initiative.
In its Q1 2025 earnings report, Enphase narrowly missed Wall Street consensus expectations for revenue. The company attributes its gross margin decline to new tariffs, as it currently sources battery cells from China, which is tariffed at 145%. The company expects gross margin impacts from tariffs to decline by Q2, 2026 after decrease in margins through Q3, 2025 as it diversifies its battery cell supply chain away from China.
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