The European Commission has moved to stop EU-funded purchases of Chinese-made solar inverters, citing fears these devices could create security vulnerabilities for the bloc’s power grid and, in extreme scenarios, contribute to widespread blackouts. The measure, confirmed on May 4, targets inverters — the component that converts solar panels’ DC output into grid-ready AC and is often called the “brain” of a solar installation because it is internet-connected and remotely accessible for maintenance and updates.
Remote access features and so-called “kill switches” are commonly used by manufacturers to protect systems or stabilise grids, but cybersecurity specialists warn they could also be exploited by hackers or hostile state actors. “All inverter companies, they do have something like a kill switch,” said Christoph Podewils, secretary general of the European Solar Manufacturing Council. Podewils adds that control of roughly 10 gigawatts of inverter capacity could be enough to cause substantial disruption to Europe’s electricity system.
Although there is no public evidence that Chinese-made inverters have been used to shut down parts of a European grid, concerns intensified after a Reuters report in 2025 that US energy officials had found rogue communication devices hidden inside some Chinese inverters. “The threat is real,” said cybersecurity expert Swantje Westphal, arguing the risk is not hypothetical.
Dependence on Chinese clean-tech is considerable. Research group Loom estimates that in 2024, 61% of the inverters imported into Europe came from China. Two Chinese firms, Huawei and Sungrow, are dominant players globally. Loom also reports China supplies 98% of the solar panels and 88% of the lithium-ion batteries imported into Europe, highlighting a broader supply concentration that could create systemic vulnerabilities through remote-access functions across connected energy technologies.
Under the new restrictions, EU funds managed directly by the Commission and institutions such as the European Bank for Reconstruction and Development can no longer be used to buy Chinese-made solar inverters. The ban does not apply to purchases by individual member states, and Chinese inverters already installed in Europe may remain in operation. Commission officials and industry observers describe the change as a cautious but important step that reduces exposure without imposing an outright market ban.
Brussels is also pursuing broader industrial and regulatory measures to reduce strategic dependencies. The Commission has proposed an Industrial Accelerator Act to steer more public funding toward European-made green technologies, including batteries and electric vehicles, and is revising the Cybersecurity Act to give Brussels greater authority to restrict companies deemed a risk to critical infrastructure such as communications and energy.
Can European manufacturers fill the gap? Currently about 80% of new solar systems in Europe rely on Chinese inverters. Industry representatives believe European suppliers can ramp up production quickly: Podewils says capacity could be increased within months to meet demand. European-made inverters are expected to be marginally more expensive — roughly 2% higher, according to a Commission official — a cost some industry figures describe as an “insurance fee” for improved supply security.
The Commission’s move signals a shift toward reducing strategic reliance on foreign clean-tech suppliers while balancing energy transition goals. It aims to encourage local manufacturing and harden critical energy infrastructure against potential cyber and supply-chain risks, even as existing installations and member-state procurement retain flexibility.