News & Analysis

/BRUSSELS, May 4, 2026, 10:00 CET, RENEWABLE MARKET WATCH™/

At the end of April 2026, the European Commission implemented a new policy restricting access to EU funding for so-called “high-risk inverter vendors.” Under this directive, a “high-risk supplier” is defined as any company owned or controlled by entities from third countries implicated in hostile cyber activities against the EU or its member states. The policy specifically identifies China, Russia, Iran, and North Korea as countries of concern. The scope of the restriction encompasses inverters used in all renewable energy applications, such as photovoltaics, as well as power conversion systems (PCS) associated with electricity storage technologies. This measure is designed to mitigate cybersecurity threats throughout the European renewable energy supply chain and strengthen the integrity of critical infrastructure investments.

This policy is a proactive step to enhance European energy security and demonstrates confidence in the ability of European and allied manufacturers to supply high-quality, competitively priced inverters and power conversion systems across all market segments. By prioritising trusted suppliers, the EU aims to ensure the reliability and resilience of its renewable energy infrastructure while supporting domestic and Western production capabilities.

For more information and answers to your questions about the European solar and battery energy storage system (BESS) market and related content, you may read here: Europe Solar Photovoltaic (PV) Power Market Outlook 2025 – 2034 and Europe Battery Energy Storage System (BESS) Market Outlook 2025 – 2034

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