Enphase Energy Unveils AI Data Center, Battery and EV Charging Roadmap

Key Points

• Enphase outlined an expanded roadmap across residential solar, batteries, EV charging, commercial storage, and AI data center power infrastructure, highlighting its move beyond its core microinverter business.
• The company is pushing new products, including the IQ9 microinverter line, a fifth-generation battery, and a bidirectional EV charger, while also developing a small commercial battery system and planning to pilot its IQ Solid-State Transformer for data centers.
• CEO Badri Kothandaraman said Enphase remains profitable with mid-40% gross margins and positive free cash flow, even as it has cut prices in the U.S. and Europe to stay competitive and adapt to shifting solar demand.

Enphase Energy NASDAQ: ENPH President and Chief Executive Officer Badri Kothandaraman outlined the company’s product roadmap, manufacturing strategy and expansion plans in commercial energy storage and data center power infrastructure during a company business update.

Kothandaraman said Enphase has shipped approximately 87.8 million microinverters cumulatively and more than 5 million systems across more than 165 countries. He said the company has also shipped more than 2.5 gigawatt-hours of storage and generated approximately $1.5 billion in revenue in 2025.

He described Enphase’s core differentiation as semiconductor integration, software-defined products and its Ensemble energy management architecture. The company’s products are built around custom silicon, including the Swift chip used in IQ8 and IQ9 products, and a next-generation chip called Kestrel that is expected to be used in future products, including Enphase’s solid-state transformer.

Kothandaraman said Enphase continues to target 500 defective parts per million, or 0.05%, and said gross margins are in the mid-40% range. He attributed those margins to value-based pricing and cost work tied to the company’s semiconductor-based architecture.

Residential and Commercial Product Roadmap

Enphase is continuing to broaden its residential energy system, which includes microinverters, batteries, EV chargers, the Enphase App and home energy management tools. Kothandaraman highlighted the IQ Meter Collar, introduced last year, saying it is now qualified in 64 utilities across the United States and in all major utilities in California. He said the product is designed to make backup installation easier and is expected to help Enphase as it is rolled out to more utilities.

The company is also expanding its IQ9 microinverter platform. Kothandaraman said Enphase has started shipping commercial microinverters based on gallium nitride, or GaN, and has begun shipping select IQ9N residential microinverters. He said IQ9N is expected to become more mainstream this quarter.

Enphase also announced pre-orders for the IQ9S-3P 480-volt commercial microinverter. Kothandaraman said the product is designed for higher-wattage commercial solar panels and is made in the United States. He said the product is also FIPS compliant.

On batteries, Kothandaraman said the company’s fourth-generation battery, introduced in June of last year, uses 62% less wall space than the third-generation product. Enphase is also working on a fifth-generation battery that it expects to pilot. The new battery will use 100 amp-hour prismatic cells and is expected to allow a 30 kilowatt-hour stack to appear to customers as one wall-mounted box.

The company also discussed PowerMatch, a software feature that can place unused battery microinverters into standby mode when home power demand is low. Kothandaraman said the technology is available through an over-the-air software upgrade for third- and fourth-generation batteries and can allow stored energy to last up to 40% longer than competing systems.

Small Commercial Batteries and EV Charging

Enphase is developing an IQ Battery for small commercial customers, including schools, hospitals, gas stations and small businesses. The commercial battery cabinet is 80 kilowatt-hours, and Kothandaraman said up to 25 cabinets can be connected at a site for as much as 2 megawatt-hours of storage. The product supports two-hour and four-hour configurations, uses 314 amp-hour prismatic cells and carries a 15-year warranty. Enphase expects to pilot the product in the first quarter of 2027.

The company’s redesigned EV charger has launched in Europe and the United States, and Kothandaraman said it is starting to ramp in both regions. He also discussed Enphase’s upcoming bidirectional EV charger, which uses grid-forming microinverters to convert energy from a vehicle’s DC port into AC power for the home.

Kothandaraman said the bidirectional charger can support vehicle-to-home backup and vehicle-to-grid services. Enphase expects to begin pre-orders in the third quarter, with shipments expected in the fourth quarter. Pricing was not disclosed.

Data Center Opportunity

Enphase also discussed its IQ Solid-State Transformer, or IQ SST, aimed at AI data centers. Kothandaraman said data centers face growing power demand, fast load swings and too many conversion stages between the grid and compute infrastructure.

The IQ SST is designed as a 1.25-megawatt building block with 342 power modules. Kothandaraman said it will support 35-kilovolt and 15-kilovolt classes and convert medium-voltage AC into 800-volt DC for AI racks. The company plans internal full-system demonstrations in 2026, pilots in 2027 and volume shipments in 2028.

Kothandaraman said the architecture uses the Kestrel ASIC and GaN technology, with 98.5% peak efficiency. He said Enphase is targeting 99.999% availability through distributed architecture and built-in redundancy.

Market Outlook and Pricing

During the question-and-answer portion, Kothandaraman said the U.S. residential solar market is gradually moving from standalone solar toward solar-plus-storage as net metering structures change. He said Europe is further along in that transition, with many countries already emphasizing self-consumption and reducing export incentives.

He acknowledged that Europe has a significant presence of Chinese products, which he described as “point products,” and said Enphase’s opportunity is to offer a more comprehensive system including solar, batteries, bidirectional EV chargers, standard EV chargers, heat pumps, hot water heaters and home energy management.

Kothandaraman also said Enphase reduced microinverter prices in Europe by about 20% late last year and reduced U.S. microinverter prices by roughly 15% to 20% in the first quarter. He said the company lowered U.S. battery prices by about 10% to 12% in March and recently reduced European battery prices by another 10%.

He said Enphase continues to generate positive free cash flow despite macroeconomic changes, including the elimination of the 25D tax credit for cash and loan customers in the first quarter of 2026. The company is working with partners on prepaid leases, which Kothandaraman said could help restore demand from that customer segment.

About Enphase Energy NASDAQ: ENPH

Enphase Energy is a global energy technology company that specializes in solar microinverters, energy storage systems and energy management software. Its core business centers on converting direct current (DC) power generated by solar panels into alternating current (AC) power suitable for use in residential and commercial applications. By integrating hardware and software solutions, Enphase Energy aims to improve solar energy yield, enhance system reliability and provide real-time monitoring capabilities to its customers.

The company's product portfolio includes its IQ Series microinverters, which attach to individual solar panels to optimize performance at the module level and reduce the impact of shading or system failures.

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