A U.S. proposal to prohibit imported inverters—likely intended to reduce dependence on China—is expected to face implementation challenges and could negatively impact domestic businesses, according to Chinese industry experts.
Washington is developing a strategy to prohibit foreign-made inverters — an essential part of renewable energy systems — due to worries about national security, according to a report from Reuters on Tuesday, with a preliminary version possibly expected to be released by the end of the year.
China holds a leading position in the worldwide inverter market, with U.S. authorities allegedly worried about the risk of Beijing interfering with American energy distribution. The European Union prohibited the usage of inverters earlier this year, from "high-risk" vendors across all EU-supported initiatives.
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However, eliminating Chinese inverters won't be simple, stated the leading Chinese inverter company Sungrow. It took China two decades to establish its production network for this product, and the U.S. might require around five years to create an equivalent domestic supply system, as the company mentioned in a release issued on Thursday.
"U.S. domestic brands account for approximately 10 percent of the market share," it further stated. "Establishing a full industrial supply chain cannot happen immediately," it noted.
According to a study published early this year by the environmental consulting firm Wood Mackenzie, Sungrow and its Chinese competitor Huawei Technologies rank as the leading two manufacturers of inverters worldwide. Six out of the top ten global supplier companies in the list are based in China.
At an investor relations meeting held on Wednesday, information about which was disclosed on Thursday, Sungrow pledged to fully comply with local regulations and address trade obstacles by focusing on "product quality and consumer confidence."
The firm emphasized that it possesses greater manufacturing capabilities and quicker product innovation processes compared to its European and Japanese rivals. It noted in the statement that tasks which typically take two to three months abroad can usually be finished within one month in China.
The Brussels choice made in May to proceed with implementing a restriction on inverters was involved in encouraging Washington to restart its own initiatives, as reported by Reuters.
Similar to the EU's action, the reported U.S. restriction is a politically driven choice that partially overlooks real-world conditions, stated a high-level manager from a Chinese inverter company, who wished to remain unnamed because of the delicate nature of the matter.
Due to the simultaneous bans from the EU and the U.S., America would face challenges replacing Chinese inverters with European parts in the near future, an official cautioned. "It is highly likely that European inverter companies won't be able to increase their output quickly," the individual stated.
Brussels has assured that its restriction will not cause significant problems for European businesses, as alternate providers are available. are capable of bridging the divide can effectively close the gap possess the ability to span the difference have the potential to cover the shortfall are able to make up for the deficiency capable of addressing the missing element able to compensate for the absence having the power to overcome the lack ready to bridge the void equipped to fill the vacancy .
However, European utility companies on the ground are experiencing significant stress, as a high-ranking official from a leading European corporation recently informed the South China Morning Post that the company was unable to function without Chinese inverters .
"You must expand your options. However, stating today that we won't purchase from China is extremely complex," the individual mentioned.
America's recently announced restriction arises alongside the swift growth of the country's renewable energy field, aimed at meeting the surging electricity needs driven by the artificial intelligence industry.
Renewable energy production in the United States, not including hydropower, increased by 8.1 percent compared to the same period last year over the first four months of 2026, as reported by recent figures from the U.S. Energy Information Administration. Solar electricity output rose by 21.3 percent during this time.
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The article was first published on the South China Morning Post (www.scmp.com), a top-tier news outlet covering developments in China and Asia.
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