David Benjamin

David Benjamin asked about the status of Enphase Energy's international markets outside Europe, specifically inquiring about the enthusiasm and outlook for Japan. He also asked for an update on the Australia market, including the impact of the battery rebate program and product introductions, and the growth trajectory of Balcony Solar.

Answer

Badri Kothandaraman, President and CEO, expressed excitement for Japan, where products were introduced in April, driven by Tokyo's solar mandate for new construction and microinverter incentives. Enphase is partnering with Hitachi, training installers, and establishing a local presence, expecting slow and steady revenue growth. For Australia, he described it as a 'great story' due to the July 2025 battery rebate, which has increased attach rates from 10-20% to 80-90%. Enphase has introduced the FlexPhase battery, IQAP, and IQ EV chargers there, with plans for hot water heater capabilities. Regarding Balcony Solar, Mr. Kothandaraman stated that initial 'hiccups' have been resolved, and Enphase is ready to ramp up again, planning several end-consumer-focused variants and launching an e-commerce team for growth throughout 2026.

David Benjamin, on behalf of Maheep Mandloi, asked about the international markets outside Europe, specifically the outlook and enthusiasm for Japan. He also inquired about the continued growth of the Balcony Solar product.

Answer

President and CEO Badri Kothandaraman discussed Japan, noting the April product launch, excitement for the Tokyo mandate favoring microinverters, and partnerships with Hitachi for installer training, expecting slow and steady revenue growth. He highlighted Australia's strong performance due to a July 2025 battery rebate, increasing attach rates, and the introduction of FlexPhase battery, IQ8P, and IQ EV chargers. For Balcony Solar, Mr. Kothandaraman stated that hiccups have been resolved, and Enphase is ready to ramp up, introducing more end-consumer focused variants and launching an e-commerce team for growth throughout 2026.

David Benjamin of Mizuho Financial Group, Inc. asked about the potential for a guidance raise and whether the 2026 Investment Tax Credit (ITC) availability could cause customers to delay projects from 2025.

Answer

KR Sridhar, Founder, Chairman & CEO, clarified that there is "zero gap" in ITC benefits for customers in 2025 due to safe harbor provisions, removing any incentive to delay projects. He stated the current guidance range accounts for potential timing shifts based on customer site readiness, not the company's production capabilities.

Speaking for Maheep Mandle, David Benjamin asked about the company's plans for using its cash, particularly regarding the potential to pay down term loans. He also questioned if there was any difference in commentary on project schedules between EPCs and developers.

Answer

CFO Keith Jennings explained that after extending its credit facility, Array is evaluating all options for its cash, including addressing converts, managing the term loan, and potential M&A, but is taking its time. CEO Kevin Hostetler confirmed that conversations with both EPCs and developers have been very similar, with both groups indicating that 2025 project schedules are expected to hold.

David Benjamin, on behalf of Maheep Mandloi, asked if a competitor's acquisition of foundation companies impacts Array's ability to bid on projects.

Answer

CEO Kevin Hostetler stated that it does not, describing the acquisition as serving a niche market where Array remains certified to work with the provider. He expressed confidence in Array's position, noting they are evaluating their own solutions, like SkyLink, which are tailored for specific geographies and conditions, and feel no limitation from the acquisition.