EU sees Chinese solar technology as a risk

The European Commission has taken steps to block funding for solar technology made in China over fears that the technology could pose a security threat to Europe's electricity grid and even cause major power outages.

The decision, confirmed on May 4, reflects growing concerns in Brussels that Europe's dependence on Chinese green technology leaves the Union vulnerable to security threats. The funding ban targets solar inverters, often described as the brains of solar power systems.

These solar inverters are devices that convert solar energy into usable electricity. They are connected to the internet and can often be accessed remotely for maintenance and software updates.

Worst-case scenario: Power outage across Europe?

"All companies that produce inverters have something like a kill switch," Christoph Podevils, secretary general of the European Solar Equipment Manufacturers Council, told DW. Kill switches and other remote connections are normally used for security or grid stabilization purposes.

But cybersecurity experts warn that, in a worst-case scenario, hackers or hostile state actors could exploit these remote connections to disrupt electricity supplies.

In 2024, 61 percent of all inverters imported into Europe came from China, according to data from Geneva-based research group Lum. Huawei and Sungrow are two inverter manufacturers that dominate not only the European but also the global market. Several Chinese manufacturers have already supplied equipment for more than 220 gigawatts of installed solar capacity in Europe.

"To put that into perspective, control of approximately 10 gigawatts would already be enough to cause major disruptions in the European electricity grid," Podevils said.

Suspicious communication devices in solar technology

There are no known cases of Chinese-made inverters being used to shut down parts of the European grid. But concerns were heightened after Reuters reported in 2025 that US energy officials had discovered suspicious communication devices inside some Chinese-made inverters. “The threat is real,” said cybersecurity expert Svantje Westphal. “It’s not a far-fetched hypothesis.”

The inverter debate comes as Europe is reassessing its broader reliance on imports of Chinese clean energy technology. China accounts for 98 percent of Europe's solar panel imports and 88 percent of its lithium-ion battery imports, according to the Lum Group. The group has warned that remote access features in connected energy technologies could create potential vulnerabilities in power systems.

The dominance of Chinese green technology in Europe

Brussels has increasingly taken a tougher stance on Chinese imports, which it sees as either a security risk or a threat to European industry. In March, the European Commission presented the Industrial Acceleration Act, which aims to channel more funding into European green technologies, including batteries and electric vehicles.

The Commission also presented a revision of the Cybersecurity Law, which will give Brussels greater powers to restrict Chinese companies in critical infrastructure, such as communications or energy supplies, across the European Union.

Under the latest measures, EU funds managed directly by the Commission and institutions such as the European Bank for Reconstruction and Development can no longer be used to purchase solar inverters made in China. The restrictions do not apply to purchases made directly by EU member states, and existing Chinese inverters installed across Europe can remain in use.

“It’s a step in the right direction,” Westphal said. “But we haven’t banned these Chinese inverters from our market.”

Can European inverters make up the shortfall?

Currently, 80 percent of new solar systems in Europe rely on Chinese inverters, according to the European Solar Equipment Manufacturing Council. If Chinese suppliers move away from meeting European demand, European manufacturers will have to fill a significant gap. But Podevils believes European suppliers are ready:

“It is possible to increase production capacity in just a few months to the level needed to meet demand.” European-made inverters are expected to be slightly more expensive than Chinese alternatives — by about 2 percent, according to a European Commission official. But Podevils argues that the extra cost is justified. “It’s like an insurance premium,” he said.