EU Curbs Chinese Solar Inverters, Boosting European Firms

The European Union has implemented a ban on public funding for utility-scale solar inverters originating from countries deemed "high-risk." This measure, enacted in May, primarily targets Chinese-manufactured products, addressing concerns over potential grid disruption via internet-connected devices.

SMA Solar's CEO, Jürgen Reinert, stated that roughly one-fifth of all major solar projects receive EU funding. Consequently, the restriction on imports from countries like China, North Korea, Russia, and Iran is expected to benefit European suppliers. Reinert estimates this could increase SMA Solar's market share by approximately 10% in the utility-scale sector.

Chinese manufacturers, including Huawei and Sungrow, have historically dominated Europe's inverter market, supplying about 70% of units in recent years. The EU-wide ban is projected to affect at least 14 gigawatts of new solar capacity based on current deployment rates. Reinert foresees a gradual transition, with market dynamics becoming clearer by the start of 2027.

Despite the ongoing shift, SMA Solar has already engaged with new clients previously sourcing from Chinese companies. The German firm has also reduced its own reliance on China for component sourcing, currently at 2% to 4% for large-scale inverters, and anticipates limited risk from potential retaliatory actions.