Enphase: A New Instance of the Inflation Reduction Act Boosting US Manufacturing

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Enphase Energy, the leading supplier of microinverter-based solar and battery systems globally, is among several companies that have increased manufacturing operations in the United States in response to the Inflation Reduction Act of 2022 (IRA). Although the act’s title emphasizes inflation, it is primarily significant for promoting climate solutions and revitalizing domestic manufacturing. This legislation marks a historic initiative to bring manufacturing jobs back to the U.S., resulting in the establishment of numerous new factories across the solar, battery, and electric vehicle sectors.

The latest development from Enphase involves the launch of its IQ8HC Microinverters, which are now being produced in the U.S. and incorporate a higher percentage of domestically sourced materials. When combined with other American-made solar equipment, these products enable buyers to qualify for the IRA’s domestic content bonus tax credit.

“The IQ8 Microinverters sourced from our U.S. manufacturing facilities represent a transformative moment for Enphase and our business,” stated Arthur Souritzidis, CEO of Momentum Solar. “This shift is in line with our principles and ensures that these advanced microinverters meet stringent standards while fostering the growth of renewable energy within our communities.”

This is commendable, but let’s be candid—the driving force behind it is the IRA. This act has effectively motivated companies throughout the industry to relocate manufacturing back to the U.S. from countries with lower labor costs.

“The domestic content bonus tax credit is exclusively available to commercial asset owners, which encompasses businesses that install solar systems and providers of power purchase agreements (PPAs) or leases for residential solar projects,” Enphase explains. “We advise those interested in the domestic content bonus tax credit to consult their legal and tax advisors to verify their eligibility for this credit.”

For more details on the new IQ8HC Microinverters, you can check the company’s data sheet. Enphase indicates that the “DOM” suffix in the SKU helps in identifying these units easily. Additional information about Enphase’s U.S. manufacturing can be found here.

“This is an exhilarating time for both Enphase and the solar industry as a whole,” remarked Ken Fong, vice president and general manager of the Americas at Enphase Energy. “Our customers can now more readily qualify for the domestic content bonus tax credit, facilitating the expansion of their businesses and reaching a broader audience. By investing in American manufacturing, we are not only creating jobs and boosting the economy but also ensuring that our products maintain industry-leading reliability and performance.” This captures the essence of what the IRA aims to achieve.

As someone who closely follows both politics and policy, it’s quite disheartening to witness the widespread ignorance regarding the substantial manufacturing revival spurred by the IRA. After years of voicing concerns over the decline of manufacturing jobs, concrete actions have finally been taken to restore them. This initiative is providing significant economic benefits. Yet, it seems more people are drawn to sensational conspiracy theories—such as the unfounded claims about residents in Springfield, Ohio, resorting to eating pets—rather than recognizing that the IRA and the Bipartisan Infrastructure Law are genuinely facilitating the construction of infrastructure, job creation, and economic growth.

Additionally, Enphase recently announced pre-orders for the IQ Battery 5Ps manufactured in the U.S., which also qualify for the domestic content bonus tax credits. Essentially, it’s the same narrative.

Photo credit: Enphase Energy