In the evolving landscape of commercial solar projects, understanding the significance of domestic content is crucial. Solar installers who are not informed about this may miss the chance to deliver high quality materials at competitive prices. Taking the time to educate themselves and commercial asset owners will really pay off in the long run. Basically, domestic content refers to the proportion of a product's components that are manufactured within the United States, which is particularly important for commercial projects aiming to qualify for the 10% bonus Investment Tax Credit (ITC).
The 10% bonus ITC opportunity*
The U.S. government offers a 10% bonus ITC for projects that meet specific domestic content thresholds. This incentive is designed to encourage the use of American-made products, thereby supporting local manufacturing and job creation. As of the Treasury Guidance from May 16, 2024, the required thresholds are set to increase over the next few years, with a 45% threshold expected in 2025 and a 50% threshold in 2026. Take advantage of 2024 Safe Harbor table requirements, by taking delivery of inverters and other required equipment on or before April 16, 2025*. New treasury guidance was defined in January 2025, that changes the domestic content percentage (2025 Safe Harbor Tables).
Enphase Energy's commercial domestic content options:
To make it easy, Enphase Energy has streamlined the process for customers to meet these domestic content requirements, offering this SKU for commercial three-phase projects:
- IQ8P-3P-72-E-DOM-US Commercial Microinverter: contains 35.6% domestic content (per 2024 Safe Harbor Tables), and 24.8% domestic content (per 2025 Safe Harbor Tables).
This product is designed to help solar installers and solar project developers comply with current government guidelines and assist their customers in qualifying for the 10% bonus ITC*.
Ensuring compliance and maximizing benefits
To properly comply with the guidelines and ensure eligibility for the bonus 10% ITC, it is essential to obtain a reliance letter from all manufacturers you are working with. This document verifies that the products used meet the domestic content requirements, providing assurance to customers and stakeholders. A reliance letter will make it easier for customers when it comes time to prepare their tax documentation. Also, it is critical to speak with a tax advisor regarding tax questions and compliance on a project-by-project basis. It is easy to obtain a reliance letter from Enphase for our IQ8 Commercial Microinverters.
Availability and support from Enphase Energy
The Enphase commercial microinverter SKU is available to order and ship now. We encourage solar installers to share their requirements and forecasts for upcoming projects, so distribution partners can properly stock these commercial microinverters and related accessories to meet customer demands.
Enphase Energy is dedicated to supporting commercial solar projects through a comprehensive range of products and services. Our investment in high-quality materials and technology is complemented by a dynamic team of professionals across sales, engineering, training, marketing, and customer support. This team is dedicated specifically to C&I endeavors. This ensures that we address our customers' needs from design to commissioning, making commercial solar projects a success.
Conclusion
By leveraging Enphase Energy's products and support, commercial solar project developers can confidently navigate the requirements for domestic content and maximize their customers’ eligibility for the 10% bonus ITC. Stay ahead of the curve by partnering with Enphase and your preferred distribution partner, to ensure your projects meet the evolving guidelines.
For more information, contact your Enphase distribution partner, your local Enphase sales representative, or reach out to commercialsales@enphaseenergy.com today. Let's work together to build a sustainable future with high-quality, American-made commercial solar solutions.
*Please ensure that the asset owner (the business entity filing taxes to the IRS) consults their advisor or professional to ensure proper tax documents are filed and administrative process is followed. Enphase Energy is not a tax advisor.
