Cybersecurity and clean energy: Inside the EU funding ban for solar and storage inverters

The European Commission’s decision to restrict EU funding for solar and battery storage projects using inverters from "high-risk" suppliers, primarily targeting China, creates significant uncertainty for the renewable energy sector. With over 80% of solar inverters in Europe originating from Chinese manufacturers, the policy threatens to disrupt supply chains and inflate project costs by 10% to 20%. Industry experts, including Cormac Gilligan from S&P Global and Jan Kricmar of the Czech Solar Association, emphasize that while the goal of enhancing cybersecurity and grid resilience is valid, the rapid implementation timeline risks stalling progress toward 2030 climate targets. The United States has adopted similar measures, signaling a broader global shift toward supply chain diversification in critical clean energy infrastructure, forcing developers to navigate complex technical and financial adjustments to maintain project viability.