WASHINGTON/LONDON, June 30 - U.S. officials are preparing a regulatory measure to limit imports of certain foreign-made inverters - the devices that connect solar arrays and battery storage to electricity grids - amid fears Beijing could exploit such equipment to disrupt power systems, according to five people familiar with the matter.
The proposed restriction is being drafted at the Federal Communications Commission (FCC) and would specifically apply to new foreign models of inverters. The sources, who spoke on condition of anonymity because the plans are not yet public, said the proposed rule could be published as early as this year. They cautioned the proposal could still be revised significantly or abandoned.
Officials said the move was in part reinvigorated after a decision by the European Commission in May to ban Chinese-made inverters from publicly funded energy projects. That European action prompted U.S. policymakers to reconsider similar steps, though the U.S. proposal under development is still being shaped.
The FCC and the White House declined to comment on the draft rule. The Chinese Embassy in Washington issued a statement saying it "firmly opposes the overstretching of the concept of national security and its unjustified suppression of Chinese companies," and called on the U.S. to provide "a fair, just and non-discriminatory environment" for Chinese businesses.
The effort represents the latest example of a more cautious, security-focused approach in Washington toward technology linked to China. Sources said the administration had eased some measures last year during a period of detente with Beijing but has recently revived attention to perceived technology vulnerabilities.
China is the world’s largest producer of inverters, with companies such as Sungrow Power Supply and Huawei prominent in the global market. The country has been expanding its share in Western markets by offering lower prices, the sources said. Last year, U.S. experts who disassemble grid-connected equipment reported finding unlisted communication components in some Chinese solar inverters, raising security concerns.
"Europe and America are waking up to the risk of losing sovereign control over their power systems through inverters," said Uri Sadot, chief executive of energy security firm SolarDefend.
Huawei has faced heavy U.S. sanctions in other sectors on national security grounds and over allegations of intellectual property theft. Observers say potential restrictions on inverters could mark increased U.S.-European alignment on curbing strategic dependencies on China's industrial supply chain.
Heather Conley, a Europe expert at the conservative think tank American Enterprise Institute in Washington, said the measures could indicate a closer U.S.-European posture on China, after Group of Seven leaders agreed to cooperate to reduce reliance on China for critical minerals.
There are already statutory procurement limits for the U.S. Department of Defense. Under the National Defense Authorization Act for fiscal year 2026, the Defense Department is barred from acquiring solar photovoltaic cells, modules or inverters produced by a foreign entity of concern, which would include Chinese manufacturers.
Previous U.S. attempts to restrict Chinese-origin inverters have occurred. Sources said the White House’s National Energy Dominance Council instructed the Commerce Department last summer to draft an expedited ban, but that effort stalled. At the time, a broader move toward detente with Beijing prompted the Commerce Department to shelve several punitive proposals aimed at Chinese technology, including potential restrictions on Chinese drone and router makers.
After the Commerce Department paused those measures, the FCC intervened with its own prohibitions on new foreign models of certain categories of telecommunications and electronics equipment. In December and March, the FCC issued bans covering new foreign models of drones and routers, respectively. Those rules include waiver pathways that allow companies to seek permission to introduce new equipment into the U.S. market; to date, no waivers have been granted to Chinese firms, the sources said.
The FCC emphasized that its earlier bans on drones and routers were "entirely country neutral and did not target any country in particular," according to a statement provided to one of the sources.
In Europe, regulators are also considering tighter security measures for inverters. Under proposals tied to the European Union's updated Cybersecurity Act, some suppliers deemed risky could be identified and, if the proposal is implemented, blacklisted from participating in certain markets or projects. A European Commission spokesperson highlighted that the act does not name any country explicitly but would create a framework to flag suppliers from countries that pose cybersecurity concerns.
Officials and industry stakeholders caution that the U.S. draft remains a work in progress. The sources emphasized the measure could be altered or withdrawn as deliberations continue. For now, the proposed FCC rule signifies a renewed willingness in Washington to use regulatory tools to address perceived supply-chain and national-security vulnerabilities in energy infrastructure.