Is Enphase Stock Halal?

Is Enphase Stock Halal?

This report attempts to answer the question “Is Enphase Stock Halal?” by focusing on Enphase’s Business, Financial, Environmental, Social, and Governance (ESG) impact.

The report finds that:

  • From a business perspective, Enphase does not generate a material part of its revenue from haram sources.
  • From a financial perspective, Enphase has no material reliance on interest (riba) in its operations.
  • From an ESG perspective, Enphase has an overwhelmingly positive impact. This assessment comes from acknowledging the millions of metric tons of CO2 that Enphase’s products have helped offset.
  • We conclude with a Comfortable rating for Enphase stock. That is, we are comfortable investing in Enphase from a halal perspective.

For more details, read below…

How much of Enphase’s revenue comes from haram?

Enphase Energy, Inc. is a global energy technology company and supplier of microinverter-based solar-plus-storage systems.

The Company delivers solutions that connect solar generation, storage, and energy management on one platform.

Its semiconductor-based microinverter system converts energy at the individual solar module level and brings a system-based high-technology approach to solar energy generation, storage, control, and management.

Practical Islamic Finance Concludes:

None of Enphase’s revenue comes from anything inherently haram.

Does Enphase rely on interest to operate?

Interest Income / Revenue0.1%0.1%0.6%
Interest Expense / Total Operating Expense2.4%1.8%1.7%

Practical Islamic Finance Concludes:

Enphase does not rely on interest in its operations.

What is Enphase’s Environmental, Social, and Governance (ESG) impact?


According to Enphase’s 2021 ESG report, based on the company’s cumulative sales records, Enphase estimates its products have offset 31 million metric tons of CO2e, enough to power 3.9 million homes with electricity for a year. 


According to Enphase, the company works with GRID Alternatives to provide low-income communities in the United States with solar power at no cost.

Enphase’s combined efforts with GRID have provided 29 MW of solar power to 8,200 families living in low-income communities.

In addition, Enphase has a relatively high Glassdoor rating of 3.8 out of 5.0 from current and previous employees compared to a 3.3 average for all other Glassdoor-rated companies.


No notable governance issues of concern.

Practical Islamic Finance Concludes:

Enphase has a net positive ESG impact.

Is Enphase Stock Halal?

From Enphase’s business, financial, and ESG reviews, Practical Islamic Finance rates Enphase stock as:

Comfortable to invest in from a Halal perspective.

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