United States restricts foreign solar inverters and energy storage

The United States has implemented significant regulatory restrictions on foreign-manufactured energy equipment, targeting solar inverters, battery energy storage systems, and transformers. The Federal Communications Commission (FCC) added foreign-produced power inverters to its covered equipment list, citing national security and digital espionage concerns regarding bidirectional wireless connectivity. While existing inverters with valid credentials remain unaffected, new authorizations for unapproved foreign models are now restricted.

Complementing these measures, President Trump signed Executive Order 14420 on August 26, 2026, declaring a national emergency regarding foreign-manufactured equipment in the bulk-power system. This order grants the Department of Energy authority to restrict hardware sourced from “covered foreign entities,” a designation largely aimed at China.

These actions create substantial challenges for the U.S. energy sector. China currently controls approximately 80% of the global lithium-ion battery supply chain, and Chinese manufacturers accounted for roughly 40% of 2025 U.S. inverter volumes. Analysts warn that these restrictions could impair the market for renewable energy components and create uncertainty for developers attempting to meet national energy storage and renewable targets.