The European Union has identified solar inverters as a high-risk dependency under its Economic Security Doctrine, a move welcomed by the European Solar Manufacturing Council (ESMC).
Unveiled earlier this month, the doctrine assesses risks to the EU’s critical infrastructure and explicitly includes solar inverters and their supply chains. It highlights concerns related to cybersecurity vulnerabilities and the bloc’s “reliance on a single supplier,” both of which are seen as potential threats to economic and energy security.
The ESMC said it welcomes the initiative. Secretary General Christoph Podewils described the doctrine as “a wake-up call for EU member states,” adding that it underscores the need to significantly reduce dependencies and mitigate cyber risks across the solar value chain.
The European Commission has outlined possible plans to combine several policy tools to address these challenges. These include the NIS2 cybersecurity directive, the Net Zero Industry Act (NZIA), and assessments of overseas measures that may “distort the level playing field in solar energy markets, notably through subsidised imports.” Depending on how these measures are implemented, the approach could signal a tougher stance than the EU has previously taken toward solar manufacturing, particularly in segments such as modules and cells, much of which has already moved offshore.
The ESMC said it particularly supports proposals to “support the development of trusted suppliers of critical subcomponents in the EU and in trusted third countries, so that there are viable alternatives” to the current inverter supply landscape, which is heavily dominated by Chinese manufacturers.
According to the trade body, which represents European solar manufacturers, around 80% of Europe’s new photovoltaic systems currently use inverters made in China, with two suppliers accounting for a large share of the market. Data from European PV wholesale platform sun.store shows that Huawei, Sungrow and Deye have led installations of both hybrid and string inverters across much of Europe in 2025.
Despite this market concentration, the EU has sufficient inverter manufacturing capacity to meet its deployment needs, according to recent data from SolarPower Europe. European producers such as SMA Solar and Fronius manufacture inverters within the region and maintain a degree of market penetration. However, both companies have faced financial pressures in recent years, resulting in losses and workforce reductions.
