Why EU sees Chinese solar tech as a major security risk

Key Points:

• The European Commission has banned EU funding for Chinese-made solar inverters due to security concerns that these devices, which connect to the internet and can be remotely accessed, could be exploited to disrupt Europe's power grid and potentially cause large-scale blackouts.
• Chinese companies, including Huawei and Sungrow, dominate the European inverter market, supplying hardware for over 220 gigawatts of installed solar capacity, raising fears about the bloc's dependence on Chinese green technology.
• The ban targets EU funds managed by the Commission and related institutions but does not affect purchases directly made by member states or existing installations, reflecting a cautious approach amid growing cybersecurity concerns.
• Europe is aiming to reduce reliance on Chinese clean tech imports, with new policies like the Industrial Accelerator Act and a revised Cybersecurity Act promoting European-made green technologies and enhancing regulatory control over critical infrastructure.
• European manufacturers are preparing to fill the supply gap left by Chinese inverters, with production capacity expected to ramp up quickly; while European inverters may cost about 2% more, officials consider this a reasonable "insurance fee" for enhanced security.