The European Commission has moved to block EU funding for Chinese-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 dependence on Chinese green technology is making the bloc vulnerable to security threats.

The commission's funding ban is focused on solar inverters, which are often described as the brain of a solar power system.

These solar inverters are the 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. 

The worst case: A blackout across Europe? 

"All inverter companies, they do have something like a kill switch," Christoph Podewils, secretary general of the European Solar Manufacturing Council, told DW. 

A kill switch and other remote connections are normally used for safety or grid stabilization. But cybersecurity experts warn that, in a worst case scenario, hackers or hostile state actors could exploit those remote connections to disrupt electricity supplies.

"The worst-case scenario is large-scale blackouts across Europe," cybersecurity expert Swantje Westphal told DW. 

In 2024, 61% of all inverters imported into Europe came from China, according to Geneva-based research group Loom.

Huawei and Sungrow are the two inverter producers dominating not just European, but global markets.  

A handful of Chinese manufacturers have already provided hardware for more than 220 gigawatts of Europe's installed solar capacity. 

"To put that in perspective, controlling roughly 10 gigawatts would already be sufficient to trigger major disruptions to Europe's electricity grid," Podewils said. 

Rogue communication devices in solar technology

There is no known case of Chinese-made inverters being used to shut down parts of a European grid.

But concerns intensified after Reuters reported in 2025 that US energy officials had discovered rogue communication devices inside some Chinese-made inverters.

"The threat is real," Westphal said. "It's not a made-up hypothesis."

The inverter debate comes as Europe reassesses its wider dependence on Chinese clean technology imports.

According to Loom, China accounts for 98% of solar panels and 88% of lithium-ion batteries imported into Europe.

The organization warned that remote access functions in connected energy technologies could create potential vulnerabilities across power systems. 

Chinese green tech dominance in Europe

Brussels has increasingly taken a tougher stance toward Chinese imports that are seen either as security risks or as threats to European industry.

In March, the European Commission presented its Industrial Accelerator Act, aimed at steering more funding toward European-made green technologies, including batteries and electric vehicles.

The Commission also presented a revisal of its Cybersecurity Act that will give Brussels greater authority to restrict Chinese companies from critical infrastructure such as communications or energy supply across 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 purchase Chinese-made solar inverters.

The restrictions do not apply to purchases made directly by EU member states, and existing Chinese inverters installed across Europe can remain in operation. 

"It's a step in the right direction," Westphal said. "But we didn't ban those Chinese inverters from our markets."

Can European inverters make up for the 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 plug a significant gap. But Podewils thinks that European suppliers are ready.  

"It is possible to grow production capacities within just a couple of months to the level needed to cover demand," said Podewils. 

European-made inverters are expected to cost slightly more than Chinese alternatives — by roughly 2%, according to a European Commission official. But Podewils argues the added cost is justified.

"It's like an insurance fee," he said. 

Edited by: Tim Rooks