The European Commission has taken steps to block funding for solar technology produced in Kini due to fears that the technology could pose a security threat to the European power grid and even cause major blackouts.
The decision, confirmed on May 4, reflects growing concerns in Brussels that Europe's dependence on Chinese green technology is leaving the Union vulnerable to security threats. DW.
The funding ban targets solar inverters, which are often described as the brains of solar power generation systems.
Those 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 make inverters have something like an off switch," Christoph Podevils, secretary general of the European Solar Equipment Manufacturing Council, told DW. A kill switch and other remote connections are normally used for security or network stabilization.
But cybersecurity experts warn that, in a worst-case scenario, hackers or hostile state actors could exploit those long-distance connections to disrupt electricity supplies.
In 2024, 61 percent of all inverters imported into Europe came from China, according to 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 is no known case 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 Westfall. "It's not a made-up hypothesis."
The inverter debate comes at a time when Europe is reassessing its wider dependence on imports of Chinese clean energy technology. According to Lum Group data, China accounts for 98 percent of solar panel imports and 88 percent of lithium-ion battery imports to Europe. That organization 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 is increasingly taking a tougher stance towards Chinese imports, which are considered either a security risk or a threat to European industry. In March, the European Commission unveiled the Industrial Acceleration Act, which aims to direct more funding to European green technologies, including batteries and electric vehicles.
The commission also unveiled a review of the Cyber Security Act, 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 buy 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 may remain in use.
"It's a step in the right direction," Westfall said. "But we didn't ban those 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 Manufacturing Council. If Chinese suppliers move away from meeting European demand, European manufacturers will have to fill a significant gap. But Podevils believes that European suppliers are ready:
"It is possible to increase production capacity in just a few months to the level needed to cover demand." Inverters produced in Europe are expected to be slightly more expensive than Chinese alternatives – by about two percent, according to a European Commission official. But Podevils argues that the extra cost is justified. "It's like an insurance payment," he said.
Source: DW
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