Chinese manufacturers of solar inverters and batteries are facing intensifying scrutiny and regulatory pressure across Europe and the United States, as concerns mount over the security risks posed by undocumented communication devices embedded in renewable energy infrastructure. The revelations, brought to light by a recent Reuters investigation, suggest that strategic vulnerabilities may be embedded at the very core of the West’s clean energy transition.
U.S. authorities have begun dismantling and analyzing Chinese-made power inverters and batteries — essential components in solar, wind, and storage installations — only to discover unauthorized cellular radios and other undocumented communication hardware. These components, while not inherently malicious, could potentially be used to bypass firewall protections, alter system configurations remotely, or even shut down grid-connected systems. According to cybersecurity experts cited in the report, this could lead to widespread grid disruption, infrastructure damage, or even blackouts on a large scale.
The discoveries come amid growing geopolitical tensions and policy responses in Western capitals. In the United States, the Department of Energy (DOE) confirmed it is actively evaluating the risks associated with foreign technologies and working to ensure that “trusted equipment” becomes the default in critical infrastructure. A new legislative initiative — the Decoupling from Foreign Adversarial Battery Dependence Act — aims to bar the Department of Homeland Security from procuring Chinese batteries starting in 2027, explicitly naming companies like CATL, BYD, EVE Energy, and Gotion High-tech.
The market impact is potentially massive. Inverters from Chinese manufacturers such as Huawei, Sungrow, and Ginlong (Solis) accounted for over 50% of global shipments in 2022, with Huawei alone holding a 29% share, according to Wood Mackenzie. Europe, too, is heavily reliant on these technologies. The European Solar Manufacturing Council estimates that more than 200 gigawatts (GW) of installed solar capacity across the continent — over half of the total — uses Chinese inverters. With grid-scale solar now playing an increasingly pivotal role in national energy strategies, any capacity to remotely manipulate or disable these systems is being viewed through the lens of national security.
These concerns are not hypothetical. In November 2024, a commercial dispute between U.S.-based inverter company Sol-Ark and China’s Deye resulted in a remote disabling of inverters, causing service disruptions and prompting alarm among regulators. Although details remain scarce, the event underscored the real and present risks associated with foreign-controlled digital interfaces within national energy systems.
In Europe, policy shifts are already taking shape. Lithuania passed a law in late 2024 to restrict Chinese access to renewable energy assets exceeding 100 kW, while Estonia’s intelligence chief warned that reliance on Chinese inverters could leave countries vulnerable to economic blackmail. In the United Kingdom, a government review of Chinese renewable technology in critical infrastructure is expected to conclude in the coming months. Across NATO, officials now speak openly of the need to identify and reduce strategic dependencies, including those related to energy infrastructure.
Industry is also reacting. Some utility-scale players, such as Florida Power & Light, are reportedly transitioning away from Chinese inverter suppliers. In Germany, solar developer 1Komma5 has publicly confirmed it avoids Huawei products altogether, citing security concerns. “Ten years ago, shutting off Chinese inverters wouldn’t have affected European grids much,” said CEO Philipp Schroeder. “But today, the risk is significantly higher due to critical mass and geopolitical tensions.”
Meanwhile, reputational damage is mounting. On May 8, Brussels-based SolarPower Europe expelled Huawei from its membership ranks amid an EU corruption probe. This marks the first such expulsion by a major industry body. The European Commission has already ceased contact with associations that include Huawei, and other business groups like BusinessEurope and DigitalEurope are following suit.
As both the energy transition and geopolitical rivalry intensify, regulators and grid operators alike are being forced to grapple with a sobering reality: the digital foundations of renewable energy are not just technical — they are political. And with Chinese dominance in the inverter and battery markets showing few signs of waning, Europe and the United States are under growing pressure to secure alternative supply chains before the cost of inaction becomes unmanageable.