Enphase Energy makes and sells home energy systems built around its IQ Microinverter, a small device that attaches to individual solar panels and converts DC power to AC power at the panel level. Unlike string inverters, which convert the output of an entire solar array from a single unit, microinverters optimize at the individual panel level, which Enphase argues improves energy yield and eliminates high-voltage DC wiring. Beyond microinverters, Enphase has expanded into a broader home energy platform that includes IQ Batteries (AC-coupled home storage), IQ EV Chargers, and IQ Energy Management software that lets homeowners monitor and optimize generation, storage, and EV charging. Enphase sells primarily to solar distributors, who bundle Enphase products with panels and racking and resell to installers, who then sell to homeowners and small businesses. Enphase also sells directly to large installers and third-party ownership providers — lease and PPA companies that finance and own solar systems on rooftops. Revenue is recognized at the time of shipment, and the key drivers are microinverter and battery volumes, average selling prices, and geographic mix. The U.S. represented 81% of FY25 revenue. Gross margins benefit meaningfully from Section 45X IRA manufacturing tax credits earned on U.S.-produced microinverters. Battery margins are currently under pressure from tariffs on Chinese lithium iron phosphate cells, and Enphase is working to address this by diversifying to non-China cell suppliers and launching a fifth-generation battery with lower cost and higher energy density targeted for broader shipment in late 2026.