“As we think about our competitive ® Our European business was strong overall in 2023 with a 60% increase from We integrated the IQ Energy Router products from our GreenCom Networks 2022, despite plummeting demand in the second half of 2023, which required positioning in Europe, we see acquisition into our home energy management systems (HEMS) in Germany, us to make rapid inventory corrections in the channel. Our three largest complex power markets such as Austria, and Switzerland during 2023. These products have the ability to markets in Europe continued to be in the Netherlands, France, and Germany. dynamic taris and home energy network third-party EV chargers and heat pumps with Enphase solar-plus- In the Netherlands, demand was impacted because consumers were fearing management needs play right into battery systems. The benet to homeowners is reduced electricity bills due to our strengths.” ® an export penalty for solar, along with confusion around the ending of net increased self-consumption, and control via the Enphase App. As we think metering. We expect our business to improve as we oer a comprehensive about our competitive positioning in Europe, we see complex power markets solution with solar-plus-batteries and energy management software that we such as dynamic taris and home energy management needs play right into our believe will help unlock the potential of the Dutch energy market. We also strengths. Our complete HEMS solutions can help homeowners navigate these believe other markets will have great possibilities. In France, we see potential complex taris and manage EVs and heat pumps, all from their Enphase App. for the market to grow and evolve into a solar-plus-battery market as utility rates moved higher in 2023 and are expected to increase even more in 2024. Coming to the international regions, we introduced our IQ8™ family of In Germany, the residential solar market, the largest in Europe, is around 3 GW microinverters and third-generation batteries in Australia. We also started and storage attach rates are approximately 80%. We also introduced products shipping our 480 W IQ8P™ Microinverters to support the growing demand for into the United Kingdom, Italy, and several other countries in Europe. high-powered solar panels in Brazil, India, and Mexico. ENPHASE CLOUD IQ MICROINVERTERS IQ GATEWAY IQ BATTERY 10T IQ ENERGY ROUTER ENPHASE APP THIRD-PARTY EV CHARGER THIRD-PARTY HEAT PUMP A typical Home Energy Management System in Europe Enphase App showing solar, battery, EV, and heat pump 8 ENPHASE CEO LETTER TO SHAREHOLDERS 2023 9