The European Commission has decided that EU funding will no longer flow into energy projects using inverters from so-called high-risk countries – China, Russia, Iran and North Korea. The European Solar Manufacturing Council (ESMC) strongly welcomes this decision as a necessary first step to safeguard European energy security, and confirms that manufacturers from Europe and other Western countries already have sufficient production capacity to meet demand in every market segment – at competitive prices.
Brussels, 24 April 2026 – The European Commission has decided, according to media reports, that EU funding instruments – including the European Investment Bank and the European Investment Fund – may no longer be used for energy projects containing inverters from China, Russia, Iran or North Korea. The ban also applies to products from companies owned or controlled by entities or persons from those countries, as well as to projects in EU neighbouring regions such as North Africa and the Western Balkans that are connected to the European electricity grid.
This is a truly bold decision with the potential to help revitalise manufacturing in Europe and other like-minded economies,” said Christoph Podewils, Secretary General of the ESMC. “This decision sends a clear signal on the security of critical infrastructure in Europe. Inverters are the heart of every solar and energy storage installation and, as internet-connected devices, a potential gateway for cyberattacks. It is right that EU funding should no longer flow to technology from high-risk states. European manufacturers are ready to meet this demand.”
An ESMC manufacturing survey conducted in February 2026 among leading Western inverter producers demonstrates that European and allied manufacturers already command substantial capacity. While the European solar market accounted for around 65 GW in 2025, the EU’s current production capacity stands at over 100 GW per year. A further 45 GW of expansion is planned in existing European facilities by 2027. Western capacity outside the EU provides at least an additional 26 GW today, with expansion potential of another 36 GW. New capacity can be brought online within as little as six to twelve months. This capacity is sufficient to reliably supply all PV market segments, including rooftop PV installations.
Switching to Western inverters is highly cost-competitive: According to a Wood Mackenzie analysis, residential and small commercial PV projects using Western inverters come at a small additional investment of just 1.7% to 4.3% of total project costs, depending on project size and location. For large utility-scale projects — which receive the bulk of EIB financing — this amounts to below 2% in Germany, Spain and Eastern Europe alike. This minimal cost difference delivers exceptional value: enhanced supply security and significantly strengthened cyber resilience across Europe’s energy infrastructure.
ESMC calls on EU member states and all public funding bodies to implement the Commission’s decision consistently and to align existing support programmes accordingly. ESMC also urges EU member states to fully support the current proposal of the European Commission to revise the Cyber Security Act (CSA 2) to structurally address the increasing supply chain and cyber security risk posed by inverters from high-risk countries.