The FCC added foreign-made power inverters to its Covered List on July 28, cutting off new authorization for covered models and effectively restricting their import, marketing and sale in the United States. The move lands as a direct hit on a market that has leaned hard on imported equipment for years.
Wood Mackenzie said more than 200 GWac of PV inverters have been supplied to the U.S. commercial, industrial and utility-scale markets over the past decade, and more than 90% of that equipment was imported. More than 70 GW came from China-based manufacturers, a level of dependence that explains why the new rule is being read as more than a paperwork change.
The FCC said the measure is tied to cybersecurity concerns and vulnerabilities in critical supply chains. It applies to equipment subject to FCC equipment authorization procedures and reaches foreign-made power inverters that fit that framework, which makes it immediately relevant to developers, manufacturers and project owners trying to understand what can still be sold or installed.
The pressure point is the rule's edge. Its current definition focuses on power inverters and specific wireless communication and remote-control functions, but some utility-scale systems can operate through wired connections, and Wood Mackenzie said future FCC guidance will be critical in determining which equipment falls under the regulation. That leaves a real question over whether some utility-scale inverters and battery energy storage systems will be captured now or later.
Wood Mackenzie estimates that manufacturers' announced projects could push annual U.S. production capacity for PV inverters and PCS above 100 GWac by the end of 2027. Chinese suppliers accounted for nearly 50% of the U.S. inverter market in 2024 and 2025, so the shift could force buyers toward domestic alternatives that are likely to cost more at first. Wood Mackenzie said average inverter prices are expected to rise by 2027 before easing later as production scales up and competition deepens, though the phaseout of U.S. manufacturing tax credits from 2030 onward could partly blunt that change, especially in residential and commercial segments.
For now, the most immediate practical worry is not only what can be bought next, but what happens to what is already in use. Some project owners are concerned that existing equipment may stop receiving firmware updates if manufacturers are caught by the new restrictions, and that is the kind of detail that can turn a regulatory action into an operating problem. The FCC has set the direction; future guidance will decide how wide the gate really is.
