Brussels, May 4, 2026 EU stops funding Chinese solar inverters over hacking risks The European Commission has suspended funding for all energy projects using solar inverters from China, Russia, Iran, and North Korea due to security concerns about potential hacking risks.
Security Concerns Behind the Ban
The funding ban, which took effect in early April, applies immediately to new projects while allowing a transition period for those already in advanced stages. Inverters, which regulate electricity flow from solar panels or battery storage systems into the grid, are often internet-connected, making them vulnerable to cyberattacks. The Commission cited "sufficient evidence" from EU member state intelligence services and its own investigations that certain third countries could exploit these devices to disrupt critical infrastructure, potentially causing widespread blackouts.
Almost all inverters currently used in the EU come from China, with Huawei and Sungrow dominating the market. The EU's decision reflects growing unease over China's dominance in the sector, which officials fear could threaten long-term energy security. A shift toward inverters manufactured within the EU or sourced from allied nations like Japan, South Korea, the U.S., and Switzerland is now a priority.