Enphase Energy's stock plummeted 5.05% during intraday trading on Thursday, reflecting investor concerns over the company's outlook amid industry headwinds.
The decline follows the expiration of the 30% federal tax credit for homeowners purchasing rooftop solar systems at the end of 2025, which has triggered a downturn in the residential solar sector. Enphase Energy announced last month it would cut 160 jobs, or 6% of its workforce, and reduce operating costs in response to the policy change. Industry forecasts now predict residential solar installations will decline sharply in 2026, delaying recovery until the end of the decade.
Adding to the negative sentiment, Barclays analyst Christine Cho CFA maintained a Sell rating on Enphase Energy today, underscoring persistent challenges facing the solar equipment maker.