US FCC Policy Update: Foreign-Produced Power Inverters Added to Covered List

<p>On July 28 local time, the Public Safety and Homeland Security Bureau (PSHSB) of the U.S. Federal Communications Commission (FCC) issued an announcement updating the FCC “Covered List” and adding <strong>foreign-produced power inverters</strong> to the list.</p><p>According to the FCC announcement, this adjustment was based on a national security determination submitted by U.S. executive branch interagency agencies. The FCC believes that certain foreign-produced power inverters may pose supply chain security and cybersecurity risks, and therefore decided to add relevant equipment to the Covered List.</p><h2><strong>Foreign-Produced Power Inverters Added to the Covered List</strong></h2><p>The FCC has long maintained a Covered List, which includes equipment and services considered by the United States to pose unacceptable risks to national security or the safety of individuals.</p><p>Following this update, foreign-produced power inverters have been added as a new equipment category under the Covered List. The updated list published by the FCC in Appendix A states: <strong>“Foreign-produced power inverters” </strong>Date added: <strong>July 28, 2026</strong></p><h2>FCC Highlights Supply Chain and Cybersecurity Risks Associated with Inverters</h2><p>In the national security determination, the U.S. side stated: <strong>“The lack of a secure U.S. inverter supply chain, as well as the continued influx of foreign-produced or foreign-controlled inverters and inverter components, poses a threat to the U.S. economy and national security.”</strong></p><p>At the same time, the FCC pointed out that as inverter resources continue to increase across the U.S. power grid, the remote connectivity capabilities of inverters may create additional vulnerabilities.</p><p>Potential risks identified by the FCC include:</p><ul><li>Foreign companies remotely shutting down inverters;</li><li>Collecting and exporting data;</li><li>Providing remote access;</li><li>Exploiting systems through cyberattacks.</li></ul><h2>Inclusion in the Covered List Will Affect FCC Equipment Authorization</h2><p>The core impact of this policy change is not a traditional change to FCC technical certification requirements. According to existing FCC rules, once equipment is added to the Covered List, relevant “covered equipment” will be prohibited from receiving FCC equipment authorization.</p><p>At the same time, all products applying for FCC equipment authorization must demonstrate that they are not equipment prohibited from authorization due to the Covered List. This means that foreign-produced inverters falling within the scope of this rule may face new FCC authorization restrictions when entering the U.S. market in the future.</p><h2><strong>The Criteria Are Based on Production Location, Not Company Nationality</strong></h2><p>It is worth noting that the FCC did not classify products based on company names or corporate nationality. The announcement clearly states that the newly added equipment category is identified based on <strong>production location</strong>, rather than the identity of the corporate entity.</p><p>Meanwhile, in the national security determination, the U.S. side stated that the scope covers foreign-produced power inverters regardless of the nationality of the manufacturer.</p><h2><strong>Companies Can Apply for Conditional Approval</strong></h2><p>The FCC has also established an exception mechanism. According to the announcement, foreign companies producing relevant equipment may apply for evaluation. If the products are determined not to pose unacceptable security risks, they may receive:</p><p><strong>Conditional Approval. </strong>For power inverters, such evaluations may be conducted by the <strong>U.S. Department of War</strong> or the <strong>Department of Homeland Security</strong>.</p><h2>FCC Expands Oversight of Smart Energy Equipment</h2><p>This FCC adjustment marks a further expansion of U.S. regulatory oversight of smart energy equipment. Previously, inverters mainly needed to meet product performance requirements, grid connection standards, and FCC technical certification requirements. The key change this time is that FCC has added foreign-produced power inverters to the Covered List, making the <strong>production origin of equipment an important factor affecting FCC equipment authorization</strong>.</p>