Enphase, a solar microinverters and battery energy storage supplier, increased the domestic content of its latest shipment of its IQ Battery 5P, a move it said will comply with the new requirements in the U.S. federal budget law, which retroactively enforces a 45% U.S.-sourced materials threshold for solar and battery products beginning June 16, 2025.
To remain eligible for the investment tax credit’s domestic content adder, products must meet this 45% threshold, which will increase to 50% in 2026 and to 55% in 2027. Enphase said it is building its new units so that they will meet the higher standards for all expected future thresholds.
The IQ Battery 5P units that will meet the threshold have the “DOM” SKU (IQBATTERY-5P-1P-NA-DOM).
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. 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.
In May Enphase reported that it had deployed more than 6.5 million IQ Microinverters and 50 MWh of IQ batteries made in the U.S. and that it had recently began shipping those with enhanced domestic content.
In its Q1 2025 earnings report, Enphase narrowly missed Wall Street consensus expectations for revenue. The company attributed its gross margin decline to new tariffs, as it sources battery cells from China, which is tariffed at 145%. The company said it expected its 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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