FCC Restrictions on Foreign-Produced Solar Inverters: What Commercial Solar Buyers Need to Know
In 2026, the Federal Communications Commission took a significant step affecting a critical component of solar and energy infrastructure: the power inverter.
On July 28, the FCC added certain foreign-produced power inverters to its Covered List, which identifies communications equipment and services determined to pose an unacceptable risk to U.S. national security or the security and safety of U.S. persons. The FCC subsequently revised the designation on August 20, providing a more specific definition of which power inverters are affected.
For businesses evaluating commercial solar, the announcement may sound like a sweeping ban on foreign solar equipment. It isn’t.
The restrictions apply to a defined category of foreign-produced, utility-interactive power inverters with remote connectivity capabilities. While the rule could affect equipment sourcing and future product availability, it does not change the fundamental viability of commercial solar.
Here is what commercial property owners and businesses should understand.
What Did the FCC Actually Change?
The FCC maintains what is known as the Covered List, a list of communications equipment and services that have been determined to pose an unacceptable risk to national security or the security and safety of U.S. persons.
Equipment placed on the Covered List generally cannot receive new FCC equipment authorization. For covered equipment requiring FCC authorization, that can prevent new products from being authorized for importation, marketing or sale in the United States.
On July 28, 2026, the FCC expanded the Covered List to include certain foreign-produced power inverters and advanced robotic equipment.
The original inverter designation raised questions throughout the energy industry because it potentially encompassed a broad range of equipment. On August 20, the FCC revised the designation and provided a more specific definition of the equipment affected.
Under the updated determination, a covered power inverter generally must:
• Be utility-interactive, meaning it converts DC electricity to AC electricity and is designed to operate in parallel with the electric utility.
• Contain, or be designed to accept, technology that enables remote communication, monitoring, sensing, data collection or control through connections such as Ethernet, Wi-Fi, cellular or Bluetooth.
• Meet the FCC’s definition of “foreign-produced.”
That last point is particularly important when interpreting what the FCC’s action means for commercial solar projects.
“Foreign-Produced” Doesn’t Simply Mean a Foreign Brand
The FCC action is sometimes described as a ban on foreign solar inverters, but that description leaves out important details.
The updated definition does not automatically prohibit an inverter simply because its manufacturer is headquartered outside the United States.
Under the FCC’s August 20 determination, an inverter is not considered “foreign-produced” for purposes of this Covered List designation if it meets certain domestic manufacturing criteria. These include qualifying for the federal Advanced Manufacturing Production Credit under Section 45X or meeting the applicable federal definition of a domestic end product.
This makes where and how equipment is manufactured, as well as its qualification under U.S. domestic-content requirements, important considerations.
The FCC also established a process through which manufacturers can seek conditional approval for certain foreign-produced inverters if they meet specified cybersecurity requirements.
The key takeaway is that this is not a blanket ban on every imported solar inverter. It is a restriction affecting a specific category of connected, foreign-produced power inverters, with important exemptions and compliance pathways.
Why Are Solar Inverters a National Security Concern?
Modern commercial solar inverters do much more than convert electricity.
Solar panels produce direct current, or DC, electricity. An inverter converts that electricity into alternating current, or AC, electricity that can be used by a building or supplied to the electrical grid.
Today’s inverters can also be connected devices. Depending on the system, they may communicate with monitoring platforms, utilities, operators or other energy-management systems. Remote connectivity can allow system owners and operators to monitor production, identify faults, collect performance data and manage equipment.
That connectivity also creates potential cybersecurity concerns, and recent incidents have demonstrated why federal agencies are paying closer attention.
In November 2024, some solar inverters manufactured by Chinese company Deye and sold in the U.S. under other brands, including Sol-Ark, were remotely disabled. Affected systems displayed a message stating that the inverter was not allowed for use in the United States. Deye attributed the shutdown to issues involving distribution agreements rather than a malicious or state-directed action. Regardless of the reason, the incident demonstrated that a manufacturer could remotely disable installed inverters through a connected management platform.
Concerns about undocumented communication capabilities have also emerged. In 2025, Reuters reported that U.S. energy officials had discovered unauthorized communication equipment, including cellular radios, in some Chinese-manufactured solar inverters and batteries. According to experts cited by Reuters, undocumented communication components could potentially provide a way to bypass established network protections and remotely interact with equipment. The Chinese government disputed suggestions that its products posed security risks.
These examples do not mean that all foreign-manufactured solar equipment presents a cybersecurity threat. They do, however, illustrate why connectivity, transparency and control over remotely accessible energy equipment have become national security considerations.
Depending on the system, they may communicate with monitoring platforms, utilities, operators or other energy-management systems. Remote connectivity can allow system owners and operators to monitor production, identify faults, collect performance data and manage equipment.
That connectivity also creates potential cybersecurity concerns.
Federal officials have increasingly focused on the security implications of connected equipment used within U.S. energy infrastructure. Inverters deployed across the electrical system can interact with the grid while also incorporating technologies that allow remote communication or control.
The FCC’s action reflects this concern. Rather than focusing on all solar inverters, the revised designation specifically targets utility-interactive foreign-produced inverters that contain, or are designed to accept, components capable of remote communication, monitoring, sensing, data collection or control.
What Does This Mean for Commercial Solar Projects?
For businesses considering commercial solar, the FCC’s decision does not mean that solar projects suddenly need to stop.
It does, however, make equipment selection and supply-chain considerations increasingly important.
Equipment Selection Will Matter More
Commercial solar developers will need to pay closer attention to the specific inverter manufacturer and model being proposed for a project.
Where the equipment is manufactured, how it qualifies under domestic manufacturing standards, whether it incorporates remote connectivity and whether it has the necessary FCC equipment authorization can all become relevant considerations.
For commercial property owners, this makes it increasingly important to understand what equipment is actually included in a solar proposal rather than evaluating a project solely on system size and price.
Solar Supply Chains May Continue Shifting Toward U.S. Manufacturing
The FCC decision is one of several federal policies creating incentives for more energy equipment and components to be manufactured within the United States.
Manufacturers serving the U.S. solar market may increasingly need to consider domestic manufacturing, component sourcing and cybersecurity requirements when developing equipment for future projects.
For buyers, these shifts could influence which products are available and how developers source equipment.
Each Project and Product Needs to Be Evaluated Individually
The FCC action should not be interpreted as an automatic problem for every commercial solar project using equipment from an international manufacturer.
Whether an inverter is affected depends on the specific equipment, how and where it is manufactured, its connectivity capabilities, its authorization status and whether it qualifies for an exemption or conditional approval.
That makes project-specific equipment evaluation especially important.
The Fundamental Value of Commercial Solar Hasn’t Changed
For a property owner or business, the larger financial question remains the same: Does the solar project produce enough electricity and long-term savings to justify the investment?
Federal equipment regulations may change which products developers use to construct a system, but they do not change the fundamental reasons businesses consider solar.
A properly designed commercial solar system can reduce the amount of electricity a property needs to purchase from the utility, provide greater predictability around long-term energy costs and add a long-term energy-producing asset to a property.
What Should Businesses Ask Their Solar Provider?
Businesses evaluating commercial solar do not need to become experts in FCC equipment authorization. However, they should expect their solar provider to understand how current regulations affect the equipment being proposed.
Before approving a system, consider asking:
• Which inverter manufacturer and model are you proposing?
• Where is the inverter manufactured?
• Is this specific equipment affected by the FCC Covered List?
• Does the inverter currently have the required FCC equipment authorization?
• Could the new restrictions affect equipment availability or project lead times?
• Are alternative products available if the originally specified equipment becomes unavailable?
A commercial solar provider should be able to explain not only a project’s expected cost and electricity production, but also why specific equipment was selected and whether current federal requirements could affect it.
The Bigger Picture: Solar Supply Chains Are Becoming a Strategic Issue
The FCC’s inverter decision is not happening in isolation.
Federal policies are increasingly influencing where energy equipment is manufactured, where components are sourced and which technologies can enter the U.S. market.
Cybersecurity requirements, domestic manufacturing incentives, tariffs and federal tax policy are all becoming part of the commercial solar landscape.
For businesses considering solar, this means equipment sourcing and regulatory compliance deserve more attention than they may have several years ago.
It also makes it increasingly important to evaluate a commercial solar project based on its specific equipment, financial model and long-term performance rather than making an investment decision based on a single regulatory headline.
What WattHub Is Watching
The FCC’s inverter restrictions are relatively new, and manufacturers, developers and federal agencies will continue working through how the requirements apply to individual products.
WattHub is continuing to monitor developments that could affect commercial solar projects, including:
• Changes to the FCC Covered List and subsequent guidance
• Manufacturer responses and equipment availability
• Domestic solar and inverter manufacturing
• Federal trade and tariff policies affecting solar equipment
• Changes to commercial solar tax incentives
For businesses planning commercial solar projects, these developments should be considered as part of equipment selection, project planning and financial modeling.
The solar market is changing, but understanding those changes makes it possible to evaluate projects based on current information rather than headlines.
Sources & Further Reading
Federal Communications Commission. “Public Safety and Homeland Security Bureau Updates Covered List Entry for Foreign-Produced Power Inverters.” Public Notice DA 26-870, August 20, 2026.
https://docs.fcc.gov/public/attachments/DA-26-870A1.pdf
Federal Communications Commission. “Covered List.”
https://www.fcc.gov/supplychain/coveredlist
Mayer Brown. “FCC Issues Updates to Covered List Entry on Foreign-Produced Power Inverters.” August 2026.
https://www.mayerbrown.com/en/insights/publications/2026/08/fcc-issues-updates-to-covered-list-entry-on-foreign-produced-power-inverters
Davis Wright Tremaine. “FCC Narrows Covered List Designation for Foreign-Produced Power Inverters.” September 2026.
https://www.dwt.com/blogs/broadband-advisor/2026/09/fcc-covered-list-power-inverters-update
Reuters. “Rogue Communication Devices Found in Chinese Solar Power Inverters.” May 14, 2025.
https://www.reuters.com/sustainability/climate-energy/ghost-machine-rogue-communication-devices-found-chinese-inverters-2025-05-14/
FYIVT. “The November 2024 Inverter Shutdown Was Real, and It Came From China.”
https://fyivt.com/the-november-2024-inverter-shutdown-was-real-and-it-came-from-china/
