The European Commission has moved to block EU funding for China-made solar technology over fears it could pose a security threat to Europe’s power grid and even cause major blackouts.
The decision, which was confirmed on May 4, reflects growing concern in Brussels that Europe’s reliance on Chinese green technology is leaving the bloc vulnerable to security threats.
The Commission’s funding restrictions focus on solar inverters, which are often described as the brain of the solar energy system.
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: Blackouts across Europe?
“All inverter companies have something like a kill switch,” Christophe Podevilles, secretary general of the European Solar Manufacturing Council, told DW.
A kill switch and other remote connections are commonly used for security or grid stabilization. But cybersecurity experts warned that, in a worst-case scenario, hackers or hostile state actors could exploit those remote connections to disrupt power supplies.
“The worst-case scenario is a massive blackout across Europe,” cybersecurity expert Swantje Westphal told DW.
According to the Geneva-based research group, 61% of all inverters imported into Europe in 2024 could come from China loom.
Huawei and Sungrow are two inverter manufacturers that dominate not only the European, but also the global markets.
A handful of Chinese manufacturers already provide hardware for more than 220 gigawatts of Europe’s installed solar capacity.
“To put it in perspective, controlling about 10 gigawatts would already be enough to cause major disruptions to Europe’s electricity grid,” Podevilles said.
rogue communication device in solar technology
There are no known cases of Chinese-made inverters being used to shut down parts of the European grid.
But concerns intensified in 2025 after Reuters reported that US energy officials had discovered faulty communications equipment inside some Chinese-made inverters.
“The threat is real,” Westphal said. “This is not some imaginary hypothesis.”
The debate over inverters comes as Europe reevaluates its widespread reliance on Chinese clean technology imports.
According to Loom, 98% of solar panels and 88% of lithium-ion batteries imported into Europe come from China.
The organization warned that remote access functions in connected energy technologies could create potential vulnerabilities in power systems.
Chinese green technology dominates Europe
Brussels has taken an increasingly tough stance towards Chinese imports which are seen as either a security risk or a threat to European industry.
In March, the European Commission introduced its Industrial Accelerator Act, aimed at mobilizing more funding for European-made green technologies, including batteries and electric vehicles.
The Commission also presented an amendment to cyber security act This would give Brussels more power to ban Chinese companies from critical infrastructure such as communications or energy supplies in European member states.
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 Chinese-made solar inverters.
The restrictions do not apply directly to purchases made by EU member states, and existing Chinese inverters installed across Europe can remain operational.
“This is a step in the right direction,” Westphal said. “But we did not ban those Chinese inverters from our markets.”
Can European inverters fill this gap?
Currently, 80% of Europe’s new solar systems rely on Chinese inverters, according to the European Solar Manufacturing Council.
If demand shifts away from Chinese suppliers, European manufacturers will have to fill a significant gap. But Podevilles thinks European suppliers are ready.
“It is possible to increase production capacity to the level needed to meet demand within just a few months,” Podevilles said.
According to a European Commission official, the price of European-made inverters is expected to be slightly higher than Chinese alternatives – by about 2%. But the Podevilles argue the extra cost is justified.
“It’s like an insurance fee,” he said.
Edited by: Tim Rooks