Our world is dependent on energy for almost every human activity. We are Our strategic in a historic transition from consumptive, fossil-fuel-based energy generation towards clean, renewable energy generation with zero environmental impact. We believe that in most geographies, this transition involves local generation of electrical power at every home and business. Consumers will evolve to focus become prosumers who produce, store, and consume their own clean energy. “We are in a historic transition from Our strategy is simple. We focus on making best-in-class home energy systems consumptive, fossil-fuel-based that enable homeowners to make, use, save, and sell their own power. We rely energy generation towards clean, on great distribution partners who have a wide reach and can service installers renewable energy generation with with inventory and working capital. Installers are our lifeblood, and we rely on zero environmental impact.” them to sell our products to homeowners. We recognize the problems that installers face such as soft costs, disparate sales and design tools, and manual processes. We are committed to building an end-to-end installer platform to help streamline and make the entire sales and design process more ecient. Raghu Belur and Martin Fornage founded Enphase in 2006 based on their deep-rooted belief that an AC-coupled distributed architecture wins in the long run, based on cost, performance, and reliability. To build products based on this architecture, we developed core competencies in semiconductor- based power conversion, software-dened Internet of Things (IoT) systems, and energy management. We build our own application-specic integrated circuits (ASICs) that allow our solar and battery products to convert power eciently, reliably, and intelligently. Our products are compatible with utility grid and microgrid conditions in virtually every place in the world. Our Ensemble technology can manage energy ows within a home and between homes. Ensemble technology coordinates distributed energy resources (DERs) such as solar microinverters, batteries, and EVs to deliver dierent use cases for the homeowner such as bill savings, resilience, or self-consumption. Solar Battery Home Loads Grid EV Heat Pump Generator Ensemble AC-coupled distributed architecture Our third-generation IQ Battery 5P in wall mount and pedestal mount congurations 22 ENPHASE CEO LETTER TO SHAREHOLDERS 2023 23