The European Commission has moved to block EU funding for Chinese-made solar technology over fears it could threaten Europe’s power grid and even trigger major blackouts. The decision, confirmed on May 4, reflects growing concern in Brussels that dependence on Chinese green technology creates security vulnerabilities.
The funding ban targets solar inverters, often described as the brain of a solar power system. Inverters convert solar energy into usable electricity and are typically connected to the internet for remote maintenance and software updates. Those remote connections — including so-called “kill switches” used for safety or grid stabilization — are cited by experts as potential attack vectors that hostile actors or hackers could exploit to disrupt electricity supplies.
“All inverter companies, they do have something like a kill switch,” Christoph Podewils, secretary general of the European Solar Manufacturing Council, said. Cybersecurity expert Swantje Westphal warned the worst-case scenario could be large-scale blackouts across Europe.
In 2024, 61% of all inverters imported into Europe came from China, according to research group Loom. Huawei and Sungrow dominate the inverter market globally. A handful of Chinese manufacturers have supplied hardware for more than 220 gigawatts of Europe’s installed solar capacity. Podewils noted that controlling roughly 10 gigawatts would already be sufficient to trigger major disruptions to Europe’s electricity grid.
There is no public record of Chinese-made inverters being used to shut down parts of a European grid. But concerns grew after Reuters reported in 2025 that US energy officials had found rogue communication devices inside some Chinese-made inverters. “The threat is real,” Westphal said. “It’s not a made-up hypothesis.”
The debate over inverters is part of a broader reassessment in Europe of dependence on Chinese clean technology imports. Loom estimates China supplies 98% of solar panels and 88% of lithium-ion batteries imported into Europe. The organization warned that remote access functions in connected energy technologies could create vulnerabilities across power systems.
Brussels has adopted a tougher stance on Chinese imports seen as security risks or threats to European industry. In March, the European Commission unveiled its Industrial Accelerator Act to steer more funding toward European-made green technologies, including batteries and electric vehicles. The Commission also proposed revisions to its Cybersecurity Act to give Brussels greater authority to restrict Chinese companies from supplying critical infrastructure such as communications or energy systems across member states.
Under the latest measures, EU funds managed directly by the Commission and institutions such as the European Bank for Reconstruction and Development can no longer be used to purchase Chinese-made solar inverters. The restrictions do not cover purchases made directly by individual EU member states, and existing Chinese inverters already installed across Europe can remain in operation. “It’s a step in the right direction,” Westphal said. “But we didn’t ban those Chinese inverters from our markets.”
Currently about 80% of Europe’s new solar systems rely on Chinese inverters, according to the European Solar Manufacturing Council. If demand shifts away from Chinese suppliers, European manufacturers would need to fill a substantial gap. Podewils says European suppliers are prepared: he believes production capacities could be grown within months to cover demand. European-made inverters are expected to cost slightly more — roughly 2% — than Chinese alternatives, a European Commission official said. Podewils framed that premium as justified insurance.
Edited by: Tim Rooks