The company enlisted legal counsel from Cleary Gottlieb Steen and Hamilton, Norton Rose Fulbright, Sidley Austin, and Hogan Lovells to scrutinize its corporate governance, intellectual property, and supply agreements. These consultations verify that the firm’s U.S. manufacturing and sales entities operate outside the restrictive definitions of a Foreign Entity of Concern (FEOC). This status is vital for installers and financing partners, as Section 48E investment tax credits depend heavily on strict compliance with evolving federal regulations.

As FEOC requirements tighten through the end of the decade, the eligibility of hardware becomes a primary driver of project economics. FranklinWH CEO Gary Lam emphasized that the move reflects a long-term strategy to stabilize the company’s position in the U.S. market. The company’s battery systems, which scale from 15 to 225 kilowatt-hours, are currently utilized in over 25 utility-managed virtual power plant programs. Chief Commercial Officer Vincent Ambrose noted that the firm is prepared to share its compliance data with financing partners to maintain transparency as regulatory frameworks continue to shift.