Pomerantz Sues Enphase Energy Over Revenue Guidance After Residential Tax Credit Acceleration

Pomerantz sues over Enphase revenue disclosures after tax law shift

SAN FRANCISCO, Feb 23 (Reuters) — A securities class action against Enphase Energy centers on how the solar equipment maker reports and guides revenue in the wake of a sudden change to U.S. residential tax incentives, the plaintiffs’ law firm says.

Allegations focus on Enphase’s “safe harbor revenue” accounting and guidance practices, the complaint filed by Pomerantz LLP in the U.S. District Court for the Northern District of California asserts. The firm contends that Enphase counts sales to customers and financing partners under a category described as sales “made to customers who plan to install Enphase’s products over more than a year,” and that investors are misled about the timing and sustainability of future revenue flows tied to those arrangements.

Plaintiffs say the issue becomes acute after the One Big Beautiful Bill Act, signed July 4, 2025, which accelerates the scheduled termination of the Internal Revenue Code Section 25D Residential Clean Energy Credit from Dec. 31, 2032 to Dec. 31, 2025. Pomerantz alleges Enphase did not adequately disclose how that curtailed credit window could alter homeowner purchase timing, third‑party financing demand and the recognition pattern for sales counted in the safe harbor category, potentially undermining previously disclosed revenue trends.

Lawsuit details and administrative deadlines

The complaint names Enphase and certain officers and covers purchases of Enphase securities from April 22, 2025 through Oct. 28, 2025. It is docketed as no. 26‑cv‑01380. Investors who bought Enphase securities during the class period have until April 20, 2026 to move for appointment as Lead Plaintiff. Pomerantz posts the complaint on its website and lists contact Danielle Peyton for inquiries.

Business context and tax incentive impact

Enphase, founded in March 2006, is a global energy technology company that supplies microinverters, battery storage and communications gear and works with solar and battery financing firms that offer leases and power purchase agreements. The Section 25D credit historically allows homeowners to deduct 30% of qualifying residential clean energy expenditures; the earlier sunset created by the July law makes eligibility contingent on purchases before the new 2025 termination date, a change that plaintiffs say bears directly on Enphase’s reported and projected sales patterns.