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EU bans Chinese solar tech from clean energy funding over security risks

A bold move to shield Europe's power grid—why Chinese solar inverters are now off-limits for EU-backed projects. The ripple effects could reshape clean energy's future.

The image shows a poster with text that reads "Install Rooftop Solar - Up to 30% of the cost of...
The image shows a poster with text that reads "Install Rooftop Solar - Up to 30% of the cost of installing rooftop solar could be covered via a 2023 tax credit". In the background, there are trees and a building with solar panels on the roof.

EU bans Chinese solar tech from clean energy funding over security risks

The European Union has tightened rules on public funding for clean energy projects. Since early April, certain Chinese solar technologies have been excluded from EU-backed schemes. Officials cite concerns over grid security and reliance on foreign suppliers as key reasons for the change. The new policy targets solar inverters, devices that link renewable energy systems to electricity networks. Equipment from Chinese firms like Huawei and Sungrow is now restricted in EU-funded projects. The move also covers technologies from other high-risk countries, including Russia, Iran and North Korea.

The EU views foreign dependence as a strategic weakness. Officials warn that disruption by outside actors could trigger widespread blackouts. To reduce risks, the bloc will prioritise inverters made in Europe or sourced from trusted partners.

Preferred suppliers now include manufacturers from Japan, South Korea, the United States and Switzerland. The shift aims to strengthen the security of Europe’s power infrastructure while maintaining progress in renewable energy expansion. The restrictions took effect in early April and apply to all new EU-funded clean energy initiatives. Solar inverters from certain foreign producers will no longer qualify for public support. The policy reflects broader efforts to protect critical infrastructure from external threats.

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