Connected Inverters Added to Regulated List, Unauthorized New Models Banned
The U.S. Federal Communications Commission (FCC) officially added foreign-manufactured connected solar inverters to its Covered List on July 28, immediately banning the import, sale, or marketing of new unauthorized models in the United States. The regulation targets microinverters, string inverters, hybrid inverters, and battery-based inverters equipped with remote communication features such as Wi-Fi, cellular networks, or Bluetooth. However, it does not affect already installed systems or federal government procurement.
The FCC emphasized that the regulation applies to "foreign-manufactured" products, not specific national brands. To qualify for an exemption, products must contain over 65% U.S.-sourced components and be manufactured in the United States. Legal firm Morgan Lewis clarified that this means even U.S. brands assembling inverters in Vietnam would still be restricted, while Chinese brands manufacturing in the U.S. and meeting the component threshold could avoid the ban. The FCC stated that manufacturer nationality does not determine regulatory status; only the actual production location and component sourcing matter.
Models that had already obtained FCC authorization by July 28 may continue to be sold and installed, and retailers can clear existing inventory. However, new models must apply for "Conditional Approval" from the Department of Homeland Security or the Department of War by January 1, 2028, submitting beneficial ownership information, a component-level bill of materials with countries of origin, and a plan to establish U.S. manufacturing facilities. The FCC also exempted federal procurement and already installed systems to ensure existing equipment remains unaffected.
Small Systems Hit Hardest, Utility-Scale Solar Largely Unaffected in Short Term
Energy media outlet Canary Media analyzed that utility-scale solar projects will face limited short-term impact, as developers have stockpiled large inventories of certified inverters. However, small off-grid and residential solar systems will experience long-term disruptions due to their short product cycles, heavy reliance on overseas supply chains, and lack of domestic alternatives. Affected brands include Bluetti, Victron, EG4, Growatt, Renogy, EcoFlow, and Redarc, many of which specialize in products for RVs, boats, or remote areas, such as 3,000W 12V inverter chargers. Currently, no U.S.-manufactured equivalents exist for these products.
Testing firm Intertek CEA estimated that U.S. domestic inverter and battery production will meet only 40% of market demand in 2027, with the ban likely further increasing costs for small systems. The firm suggested manufacturers might circumvent the regulation by shipping "dumb inverters" without built-in connectivity, allowing installers to later add certified communication modules. However, most inverter manufacturers' FCC authorizations cover only communication components, not the entire unit, leaving uncertainty over which products qualify as "previously authorized" for exemption. Additionally, FCC authorization has never been a prerequisite for selling inverters, raising questions about enforcement effectiveness.
Security Concerns Drive Regulation, Senate Launches Investigation
In May 2025, Reuters reported that U.S. experts discovered undocumented communication devices, including cellular radios, in some Chinese-made inverters, with one case involving hardware remotely disabled from China. This prompted the U.S. Senate to launch a "kill switch" investigation. The FCC’s ban represents the fourth expansion of the same policy, following previous measures targeting drones (December 2025), home routers (March 2026), and connected robot vacuums and mowers weighing over 4.4 pounds.
While the FCC stressed that the ban does not apply retroactively to already installed systems, analysts questioned whether the policy effectively mitigates risks, as it does not require new models to meet any security standards. This could leave cloud-connected power electronics vulnerable to intrusion. The FCC chair stated the move aims to prevent potential national security risks and ensure critical infrastructure remains free from foreign control. However, Intertek CEA warned the policy may limit consumer choices, increase prices, and stifle innovation, as previously authorized models gain market dominance, locking inverter technology at 2026 levels. With electricity prices continuing to rise, home solar and energy storage systems have become key tools for cost mitigation, and the ban may further erode their cost-effectiveness for consumers.
Domestic Brands Rally, but Production Expansion Remains Uncertain
Following the announcement, shares of U.S. inverter manufacturers surged, with Enphase rising as much as 17%, SolarEdge up 11%, and Sunrun gaining 7%, while Tesla remained flat. Enphase has relocated its microinverter production lines to the U.S. and closed its Mexico facility; SolarEdge began producing inverters in Austin and Florida this year; and Tesla manufactures its Powerwall 3P and native inverters domestically. Many Chinese brands previously bypassed connectivity restrictions by using add-on communication modules, but the new rules may force supply chain adjustments.
Intertek CEA projected that U.S. domestic factories must meet 65% of market demand by 2027 to alleviate supply shortages. However, current domestic production capacity covers only 40%, with most manufacturers still in the expansion phase. Analysts noted the policy will likely worsen short-term supply-demand imbalances but could eventually encourage more companies to establish U.S. factories. Nevertheless, the "Made in America" threshold remains high, requiring significant time and resource investment.
