The European Commission on May 4 moved to block EU-managed funding for Chinese-made solar inverters, citing concerns that connected devices from overseas suppliers could create vulnerabilities for Europe’s power grid and raise the risk of large-scale outages.
The restriction targets inverters—the devices that convert solar-generated DC power into grid-ready AC and which are commonly described as the “brain” of a solar installation. Modern inverters are often networked for remote monitoring, maintenance and software updates, and many include remote shut-down or “kill switch” functions used for safety or grid-stabilisation. Security experts warn those remote links could be exploited by hostile actors or hackers to interfere with electricity supplies.
“All inverter companies, they do have something like a kill switch,” said Christoph Podewils, secretary general of the European Solar Manufacturing Council. Cybersecurity specialist Swantje Westphal warned the worst-case scenario could be widespread blackouts across Europe.
Dependence on Chinese equipment is substantial. Research group Loom found that in 2024 about 61% of the inverters imported into Europe came from China, and a small number of Chinese firms—including Huawei and Sungrow—dominate the global inverter market. Chinese manufacturers have supplied hardware for more than 220 gigawatts of Europe’s installed solar capacity, the figures show; Podewils said that control of roughly 10 gigawatts would be sufficient to cause significant disruption to the grid.
There is no public record that Chinese-made inverters have been used to switch off parts of any European grid, but concerns grew after a Reuters report in 2025 that US energy officials had discovered rogue communication devices inside some Chinese-made inverters. “The threat is real,” Westphal said. “It’s not a made-up hypothesis.”
The inverter debate forms part of a wider reassessment in Brussels about reliance on Chinese clean-technology imports. Loom estimates China supplies 98% of the solar panels and 88% of the lithium-ion batteries imported into Europe. The organisation has warned that remote-access features across connected energy technologies could open up systemic vulnerabilities.
In recent months the European Commission has pushed a firmer line on imports it sees as security risks or threats to industrial capacity. In March the Commission proposed the Industrial Accelerator Act to direct more public support to European-made green technologies such as batteries and electric vehicles, and it has suggested revisions to the Cybersecurity Act to strengthen the EU’s ability to limit suppliers deemed a risk to communications or energy infrastructure.
Under the new measures, EU funds managed directly by the Commission and by institutions such as the European Bank for Reconstruction and Development can no longer be used to buy Chinese-made solar inverters. The restriction does not apply to procurement decisions taken directly by individual member states, and existing Chinese inverters already installed across Europe may remain in operation. “It’s a step in the right direction,” Westphal said, “but we didn’t ban those Chinese inverters from our markets.”
About 80% of Europe’s new solar systems currently rely on Chinese inverters, the European Solar Manufacturing Council says. If public demand shifts away from Chinese suppliers, European manufacturers would need to scale up quickly. Podewils said he believes European suppliers can expand production capacities within months. A European Commission official said locally made inverters are likely to cost roughly 2% more than Chinese alternatives—a margin Podewils described as a reasonable insurance premium for enhanced supply-chain and cyber resilience.
The move highlights the trade-off policymakers face as they try to secure critical energy infrastructure while keeping costs and deployment speed on track for the green transition.
Edited by Tim Rooks.