Enphase Energy (ENPH) Is Up 7.1% After Announcing $68 Million Third-Party Solar Partnership

• On November 20, 2025, Enphase Energy announced a new safe harbor agreement with a top solar and battery financing company for third-party ownership deals, projected to generate nearly US$68 million in revenue over 12–24 months from early 2026, while also marking the first of several anticipated agreements with this provider.
• This partnership highlights Enphase’s continued expansion in the third-party ownership segment and its ability to tailor products, such as the customized IQ9 Microinverter, to meet newly evolving incentive and sourcing requirements in the U.S. solar market.
• We’ll explore how Enphase’s entrance into more third-party ownership deals could reshape its investment case and future industry positioning.

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Enphase Energy Investment Narrative Recap

Shareholders in Enphase Energy generally need to believe in a rebound of the U.S. residential solar market, driven by new incentive-compliant product launches and growth in third-party ownership (TPO) partnerships. The new US$68 million safe harbor agreement expands Enphase’s reach into TPO channels and is a positive for revenue visibility from early 2026, but it does not immediately resolve the risk of softening U.S. demand due to the expiration of the 25D tax credit, which remains the key business risk ahead.

Among the latest product announcements, the expanded U.S. utility approvals for the IQ Meter Collar stand out as most relevant: this improvement aims to simplify home backup installations and could support faster adoption of Enphase products in TPO-financed projects, directly linking to the company’s strategic focus on broadening its installer network to offset market contraction risks. These innovations may serve as a catalyst by reducing installation barriers and boosting system integration across more residential projects.

However, what investors should be aware of is that growing partnerships like these may not be enough to counterbalance the risk of elevated channel inventory if overall homeowner demand contracts…

Read the full narrative on Enphase Energy (it's free!)

Enphase Energy's narrative projects $1.6 billion revenue and $232.0 million earnings by 2028. This requires 3.0% yearly revenue growth and a $57.3 million earnings increase from $174.7 million today.

Uncover how Enphase Energy's forecasts yield a $38.85 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Sixteen individual fair value estimates from the Simply Wall St Community range from US$28.32 to US$70.42 per share, showing substantial differences in outlook. While investors weigh these community views, the threat of a shrinking core market due to federal incentive rollbacks is a critical factor that could influence future expectations.

Explore 16 other fair value estimates on Enphase Energy - why the stock might be worth over 2x more than the current price!

Build Your Own Enphase Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Enphase Energy research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Enphase Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Enphase Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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