Enphase Energy : 2025 report (esg report 2025)

Published: 2026-05-13 02:18:24 ET ENPH

Published on 05/13/2026 at 02:18 am EDT

Enphase Energy, Inc.

Sustainability Report

2025

Enphase Energy, Inc.

Sustainability Report

2025

About us

Environmental

Social

Governance

Appendix

Contents

A letter from our President and CEO 04

Enphase in numbers 07

Our purpose 08

Our core values 09

Culture playbook 10

Our technology 12

Financial sustainability 14

E1. Our approach 17

E2. Our carbon footprint 18

E3. Product quality and safety 22

E4. Responsible supply chain 30

E5. Installer highlights 34

S1. Company demographics 43

S2. Attracting and retaining the best 44

S3. Enabling growth and advancement 47

S4. A culture of health and safety 49

S5. Corporate Social Responsibility 52

G1. Sustainability oversight and management 59

G2. Business ethics 60

G3. Digital trust and security 62

G4. Positions and policies 64

Environmental accounting 67

Climate risk 69

GRI and SASB index 72

United Nations Sustainable Development Goals 74

About this report 76

Forward-looking statements and other important legal information 77

GAAP to non-GAAP reconciliation 78

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Badri Kothandaraman

President and CEO

"As the world's leading supplier of microinverter-based solar and battery systems, we recognize our responsibility to promote sustainable practices and contribute to building a safe and equitable environment worldwide."

A letter from our President and CEO

I am pleased to share our 2025 Sustainability Report with you as we continue to make meaningful progress in expanding the availability of clean energy, strengthening our operations, and embedding sustainability across our global business. As the world's leading supplier of microinverter-based solar and battery systems, we recognize our role in acting responsibly and adopting practices that will help support long-term sustainability for all.

Since inception, more than 5.1 million Enphase-based systems have been deployed in over 160 countries, helping millions of people access clean, affordable, and reliable energy. Our products have enabled an estimated 137 terawatt hours of clean energy generation, preventing approximately 92 million metric tons of carbon dioxide equivalent (CO₂e) emissions.1 These outcomes represent tangible progress toward a more resilient and decarbonized global energy system, while empowering homeowners, businesses, and communities worldwide.

We remain committed to reducing our own operational footprint. In 2025, we achieved a 23.3% reduction in Scope 1 and 2 greenhouse gas emissions, compared to 2024, and reached an 84% clean energy mix across our global operations. These improvements reflect ongoing investments in energy efficiency, renewable energy sourcing, and responsible operations management as part of our broader climate strategy.

2025 was a challenging year of transition for Enphase and the solar industry as periods of market volatility were driven by macroeconomic conditions, policy shifts, and global uncertainty. Through it all, we continued to manage our business with rigor, demonstrating that financial discipline and sustainability reinforce one another. This approach enables Enphase to navigate market variability while continuing to create value for our stakeholders. Our culture playbook is a reminder of how we work together to achieve results.

We remain focused on technology and products that help improve quality of life while keeping true to our core purpose of sustainability. In 2025, we introduced several new products. Building on the global momentum of our IQ8™ Microinverter, we launched the IQ9N-3P™ Commercial Microinverter, our most advanced microinverter yet. This is our first microinverter powered by advanced gallium nitride (GaN) technology. The IQ9N-3P helps simplify design complexity, lower installation and balance of system costs, and improve system efficiency for 480 V commercial projects. We also started shipping our fourth-generation IQ Battery system, which includes the IQ® Battery 10C, IQ® Combiner 6C, and IQ® Meter Collar. The IQ Battery 10C is designed to be approximately 30% more energy-dense, occupy 62% less wall space, and reduce installation costs compared to previous models. Together, these components can help simplify backup installations, enhance reliability, and provide greater value to homeowners. In addition, we launched our IQ® EV Charger 2, our most advanced electric vehicle (EV) charger to date. IQ EV Charger 2 works with Enphase solar and battery systems or as a standalone charger.

"Our company embraces the opportunity to create a future of sustainable prosperity for all our stakeholders, by making it possible for people to become producers and participants in a clean energy future − when people and the planet need it most."

We have made significant investments in domestic manufacturing to offer products that qualify under domestic content provisions and comply with foreign entity of concern (FEOC) regulations, helping customers capture the full value of available clean energy tax incentives, helping improve overall project economics. By the end of 2025, we were shipping our IQ8HC™ Microinverters, IQ8P-3P™ Commercial Microinverters, IQ9N-3P Commercial Microinverters, IQ® Battery 5Ps, and IQ Battery 10Cs from our U.S.-based facilities. The ability to manufacture in the United States has strengthened our supply chain, created skilled jobs, and reinforced our long-term competitive position.

We reinforce resilience and trust across our supply chain as part of our long term sustainability strategy. Through enhanced risk management practices, increased supplier oversight, and clearly defined human rights expectations, we continue to raise standards across our value chain. These efforts help safeguard business continuity, promote ethical sourcing, and reinforce the long term strength of our global supplier relationships.

Safety, quality, and reliability remain foundational to Enphase's culture and product strategy. Our system architecture is designed with safety at the forefront, protecting homeowners, installers, and first responders. I am proud to report that we continue to maintain zero product recalls, a testament to our rigorous design, testing, and quality assurance processes.

While the clean energy industry continues to experience periods of market volatility, we believe Enphase's long term opportunity remains strong. Sustainability is not a separate initiative at Enphase - it is central to who we are, how we innovate, and how we grow.

Thank you for your interest in our sustainability efforts. We appreciate our employees, customers, partners, and stockholders for their continued trust and engagement as our accomplishments this past year would not have been possible without their collective support. Together, we remain committed to realizing Enphase's purpose: "Advancing a sustainable future for all."

Sincerely,

President and CEO

1 Cumulative estimate based on Enphase managed systems data as of December 31, 2025 grossed up for non-managed systems based on historical production records. CO2e calculations based on 137 TWh of clean energy production under the U.S. Environmental Protection Agency (U.S. EPA) Greenhouse Gas (GHG) Equivalencies

4 Calculator.

‌About us

Enphase in numbers

2006

2,872

1,967

30.90 GW

the year Enphase was founded

employees and key contributors across all our global offices1

installers in the Enphase Installer Network (EIN)1

microinverters shipped1

million

systems deployed in more than 160 countries1

2.39 GWh

of energy storage systems shipped1

137 TWh

of clean energy production2

92 million

MTCO₂e prevented from entering the atmosphere, enough to power

19.2 million homes with energy for one year3

10.4 billion

gallons of gasoline not consumed3

234 billion

miles not driven by an average gas-powered passenger vehicle3

1 Approximate cumulative values as of December 31, 2025

2 Cumulative estimate based on Enphase managed systems data as of December 31, 2025 grossed up for non-managed systems based on historical production records

3 CO2e and other calculations based on 137 TWh of clean energy production under the U.S. EPA GHG Equivalencies Calculator

6 SUSTAINABILITY REPORT 2025 7

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Our purpose

Advancing a sustainable future for all.

Founded in 2006, Enphase transformed the solar industry with our revolutionary microinverter technology, which turns sunlight into a safe, reliable, resilient, and scalable source of energy to power our lives. Today, our intelligent microinverters work with virtually every solar panel made, and when paired with our award-winning smart battery technology, they create one of the industry's best-performing clean energy systems.

The Enphase Energy System helps people make, use, save, and sell their own power. This includes our industry-leading app, which provides unprecedented data and control in the palm of your hand. For the first time in the evolution of our centuries-old grid, people can get paid for the clean energy they produce and share with their communities and build a new energy future that harnesses the sun. This clean, free, abundant source of energy can power our lives and ultimately help replace fossil fuels altogether.

Today, if you see a home with solar panels on it, there's a good chance it's an Enphase home. Enphase has shipped approximately 86.4 million microinverters, and more than 5.1 million Enphase-based systems have been deployed in over 160 countries,1 helping millions of people gain access to clean, affordable, and reliable energy while creating good jobs and a more carbon-free future for everyone.

Our core values

Our company values will show up in how we work together, how we perform, and how we all get rewarded. At Enphase, we promote and reinforce these five core values:

We exist for our customers.

We listen to our customers and measure our success based on their feedback.

We take action to deliver the best customer experience.

Advancing a sustainable future for all

Enphase is putting people and their power at the center of our shared energy future.

Enphase. Power by people.

1 Approximate cumulative values as of December 31, 2025

We place safety and quality above everything else.

We measure everything that matters and drive continuous improvement.

We make the highest quality products.

We appreciate and respect different behavioral styles and perspectives.

We collaborate globally to achieve more together than we can on our own.

We actively work to break down silos.

We tell the truth at all times, without making excuses.

We do what's best for the company.

We take ownership of our behaviors and results.

We value innovation and recognize that it is the cornerstone of our existence.

We encourage appropriate risk-taking and challenge the status quo to find solutions.

We actively promote innovation through curiosity and continuous learning.

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Culture playbook

The pillars of the Enphase Culture Playbook help align and guide daily interactions with our purpose and values.

High performance

We set the standard.

We stretch ourselves to achieve exceptional results.

We are relentless in the pursuit of excellence.

Recruiting and retaining the best

We hire only the best.

We reward and retain the best.

We promote our people who get results.

Openness and transparency

We are curious and encourage new ideas.

We recognize that people have different styles and encourage diverse perspectives.

We openly discuss issues and want to learn rapidly from our mistakes.

Accountability and execution

We acknowledge reality and get things done without making excuses.

We measure what matters and manage our performance through metrics.

Our metrics have clear targets that don't change on a whim, and we publish progress against these each quarter.

Learning organization

We encourage innovation.

We develop employees through two-way coaching and feedback.

We learn from our mistakes using a structured problem-solving approach known as 8-D.

We document and share knowledge freely.

Cultureplaybook

SUSTAINABILITY REPORT 2025

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Our technology

Enphase was founded in 2006 with the deep-rooted belief that AC-coupled, distributed architecture offers the best path forward on cost, reliability, and scalability. We have developed deep technical capabilities across semiconductor-based power conversion, software-defined energy management, and grid interoperability. At the core of our innovation is our custom-designed application-specific integrated circuits (ASICs), which allow our microinverters and batteries to convert energy efficiently, reliably, and intelligently.

"The Enphase Energy System brings a high technology, networked approach to solar generation plus energy storage, by leveraging our design expertise across power electronics, semiconductors and cloud-based software technologies."

We have a built-in system redundancy in both photovoltaic ("PV") generation and energy storage, eliminating the risk that comes with a single-point of failure. Our intelligent microinverters work with virtually every solar panel made, and when paired with our smart technology, result in one of the industry's best-performing clean energy systems. Further, the nature of our cloud-based, monitored system allows for remote firmware and software updates, which allows cost-effective remote maintenance and ongoing utility compliance.

The Enphase® Energy System brings a high technology, networked approach to solar generation plus energy storage, by leveraging our design expertise across power electronics, semiconductors and cloud-based software technologies. Our integrated approach to energy solutions maximizes a home's energy potential while providing advanced monitoring and remote maintenance capabilities.

We have evolved from solar only offerings to complete energy management solutions that enable seamless control of solar generation, battery storage, load management, EV charging, grid services, and compatibility with third party generators. Built on a single technology platform - including IQ® Microinverters, IQ® Batteries, IQ® EV Chargers, IQ® System Controllers, and IQ® Combiners with embedded IQ® Gateways - the Enphase Energy System is rapidly commissioned through the Enphase® Installer App and monitored by system owners via the Enlighten™ cloud based Enphase App, supporting the growing global transition toward the electrification of homes and businesses using renewable sources of energy.

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$1.47

revenue in 2025

6.4

billion

Financial sustainability

We managed well with our financial discipline through 2025. Revenue was $1.47 billion in 2025, compared to $1.33 billion in 2024. We shipped 6.4 million microinverters in 2025, compared to 6.5 million in 2024. Our non-GAAP gross margin was 48.2%.1

We maintained a healthy balance sheet in 2025. We generated approximately $95.9 million dollars in free cash flow during 2025 and exited the year with approximately $1.51 billion dollars in cash, cash equivalents, restricted cash and marketable securities. We

A responsible investment

Our purpose at Enphase is "advancing a sustainable future for all" and we are proud of the reputation we have built as a global leader in energy management systems and sustainability. Several third-party organizations have recognized our leadership in 2024, and our ESG ratings among leading agencies continued to improve. We remain committed to meeting or exceeding the qualifying thresholds for sustainable investment under various rubrics such as the United Nations Global Compact (UNGC), the United Nations Sustainable Development Goals (UN SDGs), the EU Finance Disclosure Regulation (SFDR), and the EU taxonomy for sustainable activities.

100% 100% 100%

million

microinverters shipped in 2025

48.2%

non-GAAP gross margin in 2025

repurchased 2,297,053 million shares of our common stock at an average price of $56.58 for an aggregate amount of $130.0 million.

Financial performance

We reported another year of profitability in 2025. GAAP net income was $172.1 million, resulting in diluted earnings per share of $1.29. Non-GAAP net income was $389.8 million, resulting in non-GAAP diluted earnings per share of $2.96.1

sustainable revenue

Table 1 Awards and recognition

sustainable R&D green CapEx

Organization

Recognition

Corporate Knights

Global 100 list of the world's most sustainable companies

Corporate Knights

America's Greenest Companies

Harvard Business School

Institute for Business in Global Society Climate Innovators 100 List

Newsweek

America's Greenest Companies

Solar Power World

Best-In-Show in Top Products Competition

Quarterly revenue by year Quarterly gross margin % by year

$800.0

$700. 0

$600.0

$500.0

$400.0

$300.0

$200.0

$100. 0

$0. 0

$726.0

$711.1

$551.1

$410.4

$356.1

$363.2 03.5

$380.9

$382.7

$343.3

$302.6

$263.3

Q1 Q2 Q3 Q4

55.0% 53.2%

48.9%

48.4%

49.2%

50.3%

46.2%

45.7%

46.2%

47.1%

48.6%

46.1%

48.1%

50. 0%

45.0%

40.0%

35.0%

30. 0%

25.0%

20.0%

Q1 Q2 Q3 Q4

Table 2 ESG ratings history

Organization

2021

2022

2023

2024

2025

Institutional Shareholder Services (ISS)

C / not Prime

C+ / Prime

B- / Prime

B / Prime

Morgan Stanley Capital International (MSCI)

BBB

Sustainalytics Risk Rating

Medium

Low

Quarterly operating expenses % by year Quarterly operating income % by year

35.0%

31.4%

28.6%

26.9%

.3%

22.9%

.4%

21.4%

19.1%

.8%

13.5%

18.0%

13.80%

30. 0%

25.0%

20.0%

15. 0%

10.0%

35.0%

32.2%

32.4%

30.4%

30.1%

31.5%

26.6%

27.2%

21.7%

.1%

20.1%

14.8%

26.6%

30. 0%

25.0%

20.0%

15. 0%

10.0%

5. 0%

Q1 Q2 Q3 Q4

0.0%

Q1 Q2 Q3 Q4

1 Please reference the Appendix for GAAP to non-GAAP reconciliation.

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E1. Our approach

At Enphase Energy, we deliver technology-based solutions that make clean energy affordable, safe, reliable, and accessible to all. We remain committed to optimizing the environmental impact of our business operations as outlined below.

Product impact

We create the products and services the world needs to help slow the pace of global warming, protect the environment, and accelerate the transition to a clean energy economy.

Responsible operations

We source clean energy, conserve resources, and manage waste responsibly, as described in our Global Environmental Policy, and certify 100% of operations to the ISO 14001 standard.

"At Enphase Energy, we deliver technology solutions that make clean energy affordable, safe, reliable, and accessible to all."

Supplier relationships

We partner with manufacturers and suppliers who uphold expectations to manage environmental issues responsibly, as outlined in our Supplier Code of Conduct.

Transparent reporting

We disclose annual updates on our environmental performance to facilitate data-driven decision making and encourage open dialogue with interested stakeholders.

Employee empowerment

We challenge and incentivize employees to propose innovative solutions to achieve positive and lasting environmental outcomes resulting from our business operations.

Legal compliance

We comply with all applicable environmental, health and safety laws, as well as all pertinent industry codes and standards in the areas where we operate.

Environmental

Enphase's best-in-class energy management solutions, spanning solar energy generation, battery storage, EV charging, and cloud-based monitoring and control, provide the smart energy needed to power global sustainable development. Our products and services directly address the urgent challenges presented by climate change and accelerate the transition to a low-carbon economy.

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E2. Our carbon footprint

We proactively manage our carbon footprint to preserve the climate benefits unlocked through product deployments and ensure business consistency with Paris-aligned emissions reduction pathways.

Energy and emissions

Enphase energy systems are deployed on approximately 5.1 million homes and businesses in more than 160 countries.1 These systems generate clean energy and avoid Greenhouse Gas (GHG) emissions that would otherwise result from local grid consumption.

"Our carbon management

Decarbonizing operations

Our carbon management strategy is built on reducing the environmental footprint of operations while maximizing the climate benefits delivered through product deployments. This includes on-site renewable energy generation and battery storage, clean energy sourcing, disciplined emissions governance, value chain engagement, and capital planning aligned with long term climate objectives. We implement various methods to increase clean energy use and reduce operational emissions while scaling the positive climate impact of our products and services.1

Expanding on-site renewable energy generation

30 TWh

generated by new Enphase microinverters deployed in 20252

20 million

MTCO₂e prevented from entering the atmosphere3

strategy is built on reducing the environmental footprint of operations while maximizing the climate benefits delivered

Sourcing clean energy from local utilities

Improving operational efficiency

through product deployments."

We prepare an annual GHG inventory in accordance with the GHG Protocol to monitor emissions performance and assess our decarbonization strategy.4

Chart 1 2025 GHG emissions

0%4

In 2025, we expanded on-site renewable energy generation to two additional Enphase facilities and maximized responsible energy procurement from local utilities in line with our sourcing principles.2 The result was a 23.3% year-on-year reduction in emissions and increase in clean energy mix to 84%.

Chart 2 Decarbonization summary

1400 100

34%

24%

34%

Scope 1

Company vehicles

Scope 2

Heat and electricity

Scope 3

Goods and services Upstream transportation Business travel Downstream transportation

1200

On-site generation capacity (kW)

1000

800

600

400

200

2021

2022

Clean energy mix (%)

2023 2024 2025

Year

On-site generation capacity (kW)

1 Approximate values as of December 31, 2025

2 Estimate based on Enphase managed systems data as of December 31, 2025 grossed up for non-managed systems based on historical production records

3 CO2e calculations based on 30 TWh of clean energy production under the U.S. EPA GHG Equivalencies Calculator

4 GHG inventory methodology and further details located in the Appendix

1 Our decarbonization strategy covers 100% of relevant Enphase operations

2 See Appendix for additional details

Assessing climate impact

We track absolute emissions, economic emissions intensity, and a custom impact intensity metric to communicate the effectiveness of our operational decarbonization strategy in the broader context of financial performance and positive climate impact. These performance trends indicate success in achieving meaningful operational emissions reductions while continuing to expand the climate benefits delivered through our products and services.

On science-based targets

We are committed to aligning our operational emissions trajectory with the global objective of limiting warming to 1.5°C, consistent with the goals of the Paris Agreement. While our operating model limits the applicability of traditional absolute reduction target frameworks, we advance alignment through sustained market based clean energy sourcing, continuous operational efficiency improvements, and active engagement with key value chain partners. Our approach prioritizes structural emissions reductions over time while preserving the scalability required to deliver significant climate benefits through the rapid deployment of

84%

clean energy mix

23.3%

emissions reduction1

clean energy technologies.

As climate accounting standards and decarbonization frameworks continue to evolve, we seek to stay informed on leading methodologies and emerging best practices. We conduct ongoing reviews of relevant developments, such as changes to the GHG Protocol

In 2022, we established an economic emissions intensity target to guide our operational decarbonization roadmap and support Paris aligned outcomes. Using 2021 as our baseline, we aim to achieve a 30% reduction by 2030 in our market based Scope 1 + Scope 2 emissions intensity, measured as MTCO₂e per $M revenue. We assess progress against this target at least annually through our GHG inventory process and disclose year over year performance trends in this report, including changes in emissions intensity and the operational measures driving those results.

Table 3 GHG emissions performance

and updates to the Science-Based Targets Initiative (SBTI) Corporate Net-Zero Standard, to inform future decisions on emissions targets, metrics, and disclosures, as appropriate given our operating model.

Hazardous air pollutants

Our products enable the avoidance of hazardous air pollutants (HAPs) that would otherwise be released from fossil fuel-based electricity generation, including particulate matter (PM₂.₅), nitrogen oxides (NOx), sulfur oxides (SO2), and other ozone forming and acidifying substances.

Metric

2021

2022

2023

2024

2025

Absolute emissions (MTCO2e)

9,240

10,603

15,557

13,458

10,326

Year-over-year change in absolute emissions (%)

14.8

46.7

-13.5

-23.3

Economic emissions intensity (MTCO2e) / ($M revenue)

6.99

4.55

6.78

10.11

7.01

Change in emissions intensity vs. 2021 baseline (%)

-34.9

-3.0

44.6

0.3

Impact intensity

(MTCO2e) / (TWh enabled)

212.9

165.2

193.0

125.7

75.4

Table 4 2025 NO and SO emissions

x 2

Annual NOx (lbs.)

SO2 (lbs.)

Enphase U.S. operations

52,223

23,660

1 Year-over-year reduction in market-based absolute Scope 1 and 2 emissions

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E3. Product quality and safety

"Our sharp focus on quality and reliability allows us to offer

Our sharp focus on quality, safety and reliability allows us to offer industry-leading warranties, achieve best-in-class field failure rates, and maintain preferred status among a wide range of global distributors and installers. We define rigorous Defective Parts Per Million (DPPM) targets at each stage of product development through launch and, once deployed, dedicated teams monitor product performance allowing them to swiftly analyze field failures, identify root causes and eradicate them. Remote firmware and software updates enabled by our cloud-based monitoring technology support over-the-air product updates and our product service and safety program, helping to extend product lifespan and minimize service disruptions.

industry-leading warranties, achieve best-in-class field failure rates, and maintain preferred status among a wide range of global distributors and installers."

product recalls in company history

better than M-Series1

500

DPPM reliability target

1 8X refers to actual failure rate results of IQ™ microinverters versus and M215™ microinverters as of Dec. 31, 2025

SUSTAINABILITY REPORT 2025

Designing for circularity

We align our operations with circular design practices, including serviceability, repair pathways, and responsible recovery at end-of-life. These measures extend product life, preserve embedded materials, and reduce demand for incremental raw material inputs associated with replacement and disposal.

Maintain/Prolong

We design products to allow for in-situ repairs by exchanging components rather than replacing the entire product. These processes result in an improved customer experience by maintaining system uptime, while also preserving materials and reducing pollution that would otherwise result from recovery and disposal. The Quality team sets ambitious serviceability targets to ensure these benefits are realized. To-date, the serviceability program has resulted in over 1,140 metric tons of recovered material.

Waste management and pollution prevention

Our waste streams are handled responsibly by certified vendors who provide certificates of destruction outlining the percent composition, mass, and recycling method employed for each constituent material. When recycling batteries, our chosen vendor is certified to the Responsible Recycling (R2) standard, which prohibits incineration of any components as a secondary disposal solution. The program emphasizes the recovery of valuable metals and the recycling of remaining plastic and byproducts. As a result, both rare earth and environmentally-persistent components are reused as material inputs for new products where possible, reducing waste accumulation volumes and raw material needs. We do not export electronic waste to non-OECD countries for disposal.

Enphase's waste management program is designed not only to maximize diversion from landfill, but also to prevent environmental releases of hazardous constituents embedded in electronic equipment, batteries, and universal waste streams. All hazardous waste is handled in accordance with applicable regulations, and Enphase recorded no reportable spills, releases, or environmental enforcement actions related to waste handling or hazardous substances in 2025.

95%

serviceability target1

Reuse/Redistribute

1,140

metric tons of material saved2

Lastly, we make a conscious effort to ensure responsible resource consumption across our facilities. Water conservation is encouraged, and we have installed auto stop taps to reduce waste. Facilities are equipped with reusable and compostable materials; single-use items are eliminated; and employees are provided with reusable dishware, utensils, and mugs. Ink cartridges, organics, plastic, glass, cardboard, fluorescent bulbs, and metal scraps are recycled as a standard practice among our facilities.

We thoroughly evaluate equipment that comes back to us through the Enphase Upgrade Program or otherwise from the field failures or Returned Merchandise Authorizations. If deemed fully functional, these products are repackaged and used for product trainings and demonstrations to installers and distributors, employees, or other interested audiences, extending their useful lifespan.

Recycle

We meticulously recycle our electronic waste (e-waste), hazardous waste, and universal waste across our global operations. Sources of recycled material include scrap generated through product R&D, manufacturing and testing; office computers and peripherals; and equipment that could not be managed through the circularity methods discussed above.

Table 5 Waste managed in 20251

Waste type

Amount generated (MT)

Amount diverted from disposal (MT)

Recycled (%)

Percent directed to landfill

(%)

Hazardous waste

0.40

100

E-waste

74.53

100

Universal waste

23.80

100

1 For IQ Batteries and IQ System Controllers

12 Cumulative amount of material saved as of 12/31/2025

1 Hazardous waste, e-waste and universal waste across India, New Zealand, and United States operations

Managing harmful chemicals

Chemical safety is embedded into our global product governance framework through a formal evaluation and planning process that applies to all newly developed and materially modified products. Our approach aligns with applicable global regulations and emerging regulatory trends. All of our products are compliant to the following standards:

Eco-friendly packaging

Enphase products are packaged to specifications designed to minimize environmental impact while ensuring product protection and transportation efficiency. Packaging materials are selected with an emphasis on recyclability, and environmental performance is continually improved through design and logistics optimization. Our approach prioritizes reducing the number of packaging components and material types, increasing the use of paper based and widely recyclable materials, and optimizing pallet configurations to improve shipping efficiency.

Registration, Evaluation, Authorization and Restriction of Chemicals Directive (REACH)

Restriction of Hazardous Substances Directive (RoHS)

100%

recyclable packaging1

< 1%

plastic in packaging

Waste Electrical and Electronic Equipment Directive (WEEE)

These measures help reduce packaging waste, lower transportation impacts, and support end user recycling by simplifying material sorting and aligning packaging formats with common municipal recycling capabilities across major markets. Plastic used in product packaging represents less than 1% of total packaging weight, typically. Packaging for IQ Microinverters, IQ Gateways, and the IQ Meter Collar consists entirely of paper based materials and is 100% recyclable.

Safety comes first fEorUthBoasettweorrykinRgeognuoluartpioronduct development. The Product Life

California Proposition 65

In addition to regulatory compliance, we maintain a proactive chemical risk reduction approach designed to minimize the use of hazardous substances throughout the product lifecycle. Chemical screening is conducted during product concept and design reviews to identify substances of concern, substances of very high concern, and IEC 62474 Declarable Substances. Where feasible, we prioritize material substitution, engineering controls, or design alternatives to eliminate or reduce reliance on hazardous substances ahead of regulatory thresholds.

1 Product packaging for IQ Microinverters, IQ Batteries, IQ Gateways, IQ System Controllers, IQ Combiners, IQ Collar, EVSE NA Gen 2

Environmental health and safety

We are committed to conducting operations in a manner that maintains safe and healthy working conditions, protects the environment, and conserves natural resources. We maintain structured management systems to identify, assess, and manage Environmental Health and Safety (EHS) considerations across global operations. 100% of Enphase operated facilities are certified to ISO 9001 and ISO 14001.

Field safety and performance

Safer lithium iron phosphate (LFP)

battery chemistry

Safer AC-coupled system

architecture

Enphase Energy Systems are inherently more safe than others present in the market due to their AC system architecture. By converting high-voltage, direct current from individual solar panels to low-voltage AC, microinverters virtually eliminate arc fault and corresponding thermal risk in solar installations. The benefit is magnified when storage is added, as our IQ Batteries use a stable, safe lithium iron phosphate (LFP) chemistry and are AC-coupled, meaning they charge and discharge using alternating current.

100%

ISO 14001:2015 Environmental Management System

(EMS) certification1

100%

of Enphase operated facilities complete environmental assessments

Environmental considerations are managed through an ISO 14001-certified EMS that uses a standardized register to systematically identify, evaluate, prioritize, and address potential impacts across operations and relevant value chain activities. This process assigns accountable owners, applies consistent impact and likelihood evaluation, tracks mitigation actions and residual outcomes, and informs annual environmental objectives and targets with time bound actions. Management systems are periodically reviewed and updated to address regulatory changes, evolving operational conditions, and insights from audits and incidents, supporting continual improvement and ongoing certification maintenance.

Firefighters across the globe have recognized and welcomed the increased safety, reliability, and operating security of Enphase Energy Systems. We have trained thousands of firefighters on critical strategies and tactics which serve to further mitigate structure fires involving PV and Battery Energy Storage Systems (BESS) and remain committed to setting the gold standard with respect to PV and BESS safety. For more information, please see our Energy Story: Safety and Solar.

Product safety testing

Enphase designs and tests products to meet or exceed applicable safety, quality, and reliability requirements. All products undergo structured hazard identification and evaluation across the product lifecycle, addressing chemical, electrical, mechanical, thermal, ergonomic, and environmental considerations. Hazards exceeding acceptable thresholds require mitigation prior to commercialization, while remaining tolerable hazards are addressed through labeling, user documentation, and training. Product conformity with applicable standards is validated through independent third-party testing and certification.

100%

ISO 9001:2015 Quality Management System (QMS) certification1

100%

of products receive third-party testing and certification

Product safety and quality performance are monitored throughout the product lifecycle using diagnostics, customer support escalation processes, warranty programs, and field reliability data, which inform corrective actions, design improvements, and continuous improvement initiatives.

1 All Enphase operations and contract manufacturing operations

‌

E4. Responsible supply chain

We are committed to building a supply chain and manufacturing ecosystem that reflects our values of responsibility, resilience, transparency, and continuous improvement. Our

Manufacturing

All manufacturing sites are certified to ISO 9001, ISO 14001, and ISO 45001 management standards1, ensuring consistent quality, environmental and safety controls are in place across our global footprint. Manufacturing operations support delivery of Foreign Entity of Concern (FEOC)-compliant microinverters and batteries with domestic content, and globalization efforts are underway for battery cell packs sourcing.

"We are committed to building a supply chain and manufacturing ecosystem that reflects

our values of responsibility, resilience, transparency, and continuous improvement."

approach to managing labor, human rights, and environmental risks includes defined supplier expectations, risk based oversight, and corrective action mechanisms across key tiers of the supply chain.

Codes and policies

Our Supplier Code of Conduct sets explicit labor and human rights expectations for suppliers across our supply chain, including the prohibition of forced labor and child labor, respect for freedom of association, non-discrimination, safe and healthy working conditions, payment of legally required wages and overtime, and compliance with applicable working hour limits. We require all suppliers to certify they will abide by the expectations set forth in the Enphase Supplier Code of Conduct and apply the requirements contained therein to sub-suppliers.1

Las Vegas, NV, USA

Fort Worth, TX, USA

Oostrum, Netherlands

Columbia, South Carolina

Chennai,

India

Arlington, Texas

Chart 3 Global supply chain2

100%

ISO 14001, ISO 9001, and

ISO 45001 certification

20M+

microinverters per year

1.2+GWh

of battery storage per year

Supplier code of conduct

Human rights policy

Conflict minerals policy

Materials sourcing

While Enphase does not extract or refine raw materials, our products rely on semiconductors, metals, and battery related materials sourced through a multi tier global supply chain. Upstream environmental and social risks are managed through supplier expectations, oversight, and prioritization of key material categories, alongside chemical and materials safety requirements that support regulatory compliance and the management of substances of concern. Additional detail is provided in the Managing harmful chemicals section of this report.

Forced labor and conflict minerals

We prohibit forced labor, child labor, slavery, and human trafficking across our supply chain. Suppliers, subcontractors, and relevant sub tier suppliers are required to comply with applicable laws and international standards and to conduct due diligence to verify compliance. Also see our California Transparency in Supply Chains Disclosure. We are committed to following all materials guidance and environmental regulatory compliance requirements of the countries in which we operate. We do not use cobalt in our batteries as this mineral represents an increased risk of being sourced from the Democratic Republic of the Congo (DRC) and other conflict-affected areas associated with unfair labor practices. Our conflict minerals disclosure on responsible sourcing is updated annually and posted on our website. For additional information, please refer to our most recent conflict minerals report.

1 Contract manufacturers and direct hardware component vendors

1 Arlington only certified to ISO 9001:2015 Quality Management System (QMS) standard. We plan to certify to ISO 14001:2015 and ISO 45001:2015 in the future

2 As of December 31, 2025

Qualification, onboarding and training

Supplier labor and human rights expectations are communicated prior to onboarding through the Supplier Code of Conduct and are contractually binding as a condition of engagement. Supplier performance is a factor in qualification, business allocation, and contract renewal decisions. Where non conformance is identified, we require corrective action within defined timeframes and may escalate responses, up to and including disengagement, if issues are not remediated.

Supplier audits and assessments

We conduct compliance audits across our supply chain, up to the third tier, with audit depth and frequency scaled based on geography, product type, and specific risk indicators. In 2025, 1,023 suppliers were assessed through internally conducted risk audits, supported by a third party software platform to enhance consistency, documentation, and traceability.

Corrective actions and remediation

When audits or assessments identify non compliance with labor or human rights expectations, we issue a corrective action plan that defines remediation requirements, ownership, and target completion dates. Corrective actions are tracked through closure, and recurring issues are analyzed to identify systemic improvement opportunities. Additional supply chain due diligence measures, including multi tier mapping and supplier questionnaires, are disclosed in our Modern Slavery Statement.

Chart 4 Supplier auditing and assessment process

1000+

suppliers screened

100%

Expectations communicated to suppliers

Supplier self-assessment

Enphase on-site assessment

Gap analysis and corrective actions issued

Actions closed and supplier approved

Initiate recurring Enphase on-site assessment

of audited suppliers subject to corrective action tracking

Supplier sustainability performance is assessed through initial screening and ongoing monitoring, with enhanced oversight applied to suppliers identified as higher risk. Risk level is determined by a weighted scorecard of factors covering strategic importance, technology type, supplier location, and percent of total procurement spend. Enphase is a signatory to the Solar Energy Industries Association (SEIA) Forced Labor Prevention Pledge, and thus suppliers identified as potential forced labor risks are classified as high risk and subject to enhanced monitoring and follow up audits.

Topic

Assessment criteria

Environmental

Labor and human rights

Health and safety

Evidence of OHS rules and practices Accident reporting

Annual fire drill and emergency response procedures

Environmental policy

Environmental Management System (EMS) certification to ISO 14001:2015 or equivalent

REACH and RoHS compliance

Conflict minerals report submitted

Workforce policies covering human rights, anti-slavery and human trafficking, labor rights

Evidence of conformance to Uyghur Forced Labor Prevention Act (UFLPA)

Table 6 Select environmental, labor and human rights, and health and safety screening factors1

Table 7 2025 Supply chain assessment results, non-compliance

Environmental non-compliance rate (%)

Social noncompliance rate (%)

Suppliers screened for environmental and social criteria (%)

Suppliers certified to our Supplier Code of Conduct

4.2

0.2

100

Environmental corrective actions issued (ct.)

Social corrective actions issued (ct.)

1.0

0.0

1 Not exhaustive

‌

E5. Installer highlights

United States

Amy's Kitchen, Inc.

Organization

MEI Renewables, Inc.

Enphase product installer

Petaluma, CA

Location

MEI Renewables worked with Amy's Kitchen, Inc. to support the company's commitment to sustainability through the installation of a rooftop solar energy system at its headquarters in Petaluma, California. As a mission-driven food and beverage manufacturer, Amy's Kitchen sought to reduce its environmental impact while offsetting a significant portion of its building energy use. The Enphase IQ8P-3P Commercial Microinverters were selected to simplify system design, ensure compliance with rapid shutdown requirements, and provide reliable, module-level monitoring backed by a 25-year limited warranty. The system supports Amy's long-term operational and sustainability goals while delivering meaningful energy cost savings.

51.0 kW

solar energy system size

70.0 MWh

estimated annual production

United States

Horse & Dragon Brewing

Organization

Sandbox Solar, LLC

Enphase product installer

Fort Collins, CO

Location

Sandbox Solar worked with Horse & Dragon Brewing, a craft brewery in Fort Collins, Colorado, to support the company's commitment to sustainability and long-term cost savings through the installation of a rooftop solar energy system. As a brewery focused on balancing environmental responsibility with financial performance, Horse & Dragon sought a solution that would deliver reliable production and predictable savings. The Enphase IQ8P-3P Commercial Microinverters were selected for their flexibility in matching the building's AC system size, streamlined installation, and long-term reliability backed by a 25-year limited warranty.

43.0 kW

solar energy system size

60.4 MWh

estimated annual production

United States

Manatee School for the Arts

Organization

Tampa Bay Solar

Enphase product installer

Palmetto, FL

Location

Tampa Bay Solar partnered with the Manatee School for the Arts to design and install one of the largest rooftop solar energy systems ever deployed at a Florida school, placing more than 3,000 solar panels across six campus buildings in Palmetto, Florida. The two megawatt, grid-tied system now provides more than 90 percent of the school's electricity needs while dramatically reducing utility costs by an estimated $200,000 annually, allowing the school to invest more in educational programs, teachers, and students. Students also get real-world exposure to clean energy technologies, reinforcing sustainability education alongside classroom learning. The project is expected to power the campus for at least 25 years and significantly cut the school's carbon footprint as part of a long-term commitment to operational efficiency and environmental stewardship.

Colombia

Tecnología Renovable y Sostenible partnered with Avo-Pak to deliver one of Colombia's largest rooftop solar installations, supporting both industrial operations and community-focused economic development in La Ceja, outside Medellín. Installed at Avo-Pak's avocado processing facility, the system includes 1,879 Enphase IQ8P-3P Commercial Microinverters and was designed to offset 20-30% of the site's energy consumption while prioritizing long-term reliability and local impact. The project reflects a shared commitment to precision engineering, high-quality system design, and using solar energy as a catalyst for sustainable growth and job creation in the region.

solar energy system size

3.8 GWh

estimated annual production

1.4 MW

Avo-Pak

Organization

Tecnología Renovable y Sostenible

Enphase product installer

La Ceja, Antioquia

Location

solar energy system size

GWh

estimated annual production

Belgium

Earth worked with Belgoprocess to support the development of a large-scale solar installation at a radioactive waste management facility in Dessel, Belgium. Given the scale, complexity, and safety requirements of the project, 4,000 Enphase IQ8H Microinverters were selected for their safer AC-based system architecture, emphasis on cybersecurity, and superior reliability and performance. The distributed microinverter design enables independent operation at each panel, reducing risk associated with high-voltage DC power while providing advanced panel-level monitoring and long-term operational flexibility. The system is designed for future expansion, supporting Belgoprocess' long-term sustainability and operational goals.

France

GUMUS

Organization

R GREEN Energy

Enphase product installer

Auvergne-Rhône-Alpes region

Location

R Green Energy worked with GUMUS, a building insulation and exterior painting company based in the Auvergne-Rhône-Alpes region of France, to install a rooftop solar energy system designed to deliver maximum safety, reliability, and long-term performance. With safety and insurance considerations top of mind, GUMUS sought a solution that avoided centralized inverters, DC power on the roof, and grounding constraints in its car park. Enphase IQ8 Microinverters were selected to provide a low-voltage AC architecture, enhanced roof safety, and industry-leading warranties backed by strong financial stability. The system supports GUMUS' operational needs while delivering predictable energy production and long-term value.

Belgoprocess

Organization

Earth

Enphase product installer

Dessel

Location

solar energy system size

GWh

estimated annual production

99.6 kW

solar energy system size

117.8 MWh

estimated annual production

SUSTAINABILITY REPORT 2025

Disclaimer

Enphase Energy Inc. published this content on May 13, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 13, 2026 at 06:17 UTC.