PVTIME – On 23 April 2026, the European Commission issued a far-reaching resolution that no EU energy project subsidies would be available for any project using inverters produced in China, Russia, Iran or North Korea, with immediate effect. This measure primarily targets Chinese manufacturers, who currently hold around 70% of the global market for battery and photovoltaic inverters, and up to 80% of the European market.
The European Commission justified this decision on cybersecurity grounds, stating that such smart devices could potentially be vulnerable to attacks on European power grids. The resolution was not publicly announced, but was communicated internally to EU directorates-general and industry associations during an online meeting on the morning of 23 April.
Barbara Gawlikowska, Head of the Economic Security Department in the Office of the EU Secretary-General, is understood to have stated that the EU had no intention of publicising the matter widely. All major EU core financing instruments, including the European Investment Bank and the European Investment Fund, are subject to the new rules.
Industry estimates suggest that around a fifth of European photovoltaic projects in 2025 relied on funding from the European Investment Bank, and the majority of these projects were fitted with Chinese inverters. The control policy covers all grid-connected photovoltaic and energy storage projects in the EU and extends to non-EU countries connected to the European power grid, including North African and Balkan states.
The detailed rules of the new regulation are as follows: Immediate effect: new projects applying for EU funding cannot purchase inverters from the four high-risk countries.
Transition period: existing projects that are already operational and equipped with inverters from these countries can continue to claim subsidies until 31 December 2026.
Full ban: from 1 January 2027, any project using inverters from the listed countries will be completely ineligible for EU funding.
The EU has broadly defined “high-risk inverters”. In addition to locally produced equipment, the restrictions also apply to inverters manufactured by overseas factories controlled or effectively owned by entities from the four countries, achieving near-comprehensive coverage.
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