The Federal Communications Commission (FCC) is drafting a rule to prohibit the importation of Chinese-made solar and battery inverters due to potential risks to the U.S. power grid. The proposed rule could be published as early as this year and would apply to new foreign models of inverters, as reported by Reuters. Inverters are devices that convert power from solar panels or batteries into electricity for residential or commercial use.
China is the leading global producer of inverters, with companies such as Sungrow Power Supply and Huawei dominating the market. Concerns have been raised regarding national security due to China's significant role in technology, manufacturing, and critical mineral sectors. Reports from last year indicated that U.S. experts found unauthorized communication devices within Chinese solar power inverters during security checks of grid-connected equipment.
China has leveraged its dominance in the mineral sector against the West, implementing export controls on rare earths essential for defense and energy technologies. The Trump administration had previously considered banning Chinese inverters, with the National Energy Dominance Council directing the Commerce Department to draft a ban, although those efforts were delayed. The current push for a ban has been partly influenced by the European Commission's decision in May to prohibit Chinese inverters for publicly funded energy projects. In 2024, nearly 24% of inverters imported into the U.S. were from China, according to the U.S.-China Economic and Security Review Commission. Additionally, the Department of War is barred from using solar photovoltaic cells, modules, or inverters produced by foreign entities of concern, including Chinese firms.