The United States is reportedly preparing to impose a ban on foreign-made inverters, key components in renewable energy systems, as part of efforts to reduce dependency on China and address national security concerns. A draft of the proposed restriction is expected to be released by the end of the year, according to sources familiar with the matter.

Chinese companies currently dominate the global inverter market, prompting U.S. officials to express worries over the potential for China to disrupt American power supplies. The European Union implemented a similar measure earlier this year, banning inverters from so-called “high-risk” suppliers in all EU-funded projects.

Industry experts from China warn that the U.S. faces significant challenges in enforcing such a ban. Sungrow, one of China’s leading inverter manufacturers, noted that it took China approximately two decades to establish its comprehensive supply chain. The company estimates that building a comparable industrial base in the U.S. could take up to five years. Sungrow also highlighted that domestic American brands currently hold about 10 percent of the market share, underscoring the difficulty of rapidly creating a competitive local supply chain.

Sungrow and Huawei Technologies rank as the top two global suppliers of inverters by market share, with a majority of the world’s leading manufacturers based in China. In a recent statement, Sungrow pledged to comply with local regulations and address potential trade barriers through maintaining product quality and customer trust. The company also pointed to its manufacturing advantages, claiming shorter product development timelines compared to European and Japanese rivals.

Observers suggest that the U.S. decision to revive the ban may have been influenced by the EU’s move earlier this year. However, some industry insiders in China contend that the political motivations behind the bans overlook practical industry realities. A senior executive from a Chinese inverter manufacturer, speaking on condition of anonymity, suggested that the U.S. would struggle to substitute Chinese inverters with European alternatives in the near term due to capacity constraints.

While Brussels maintains that European suppliers can compensate for the removal of Chinese products without significant disruption, some European utility executives report ongoing difficulties. One senior official with a major European company described the shift away from Chinese inverters as “very, very complicated,” emphasizing the challenge of diversification under current conditions.

The U.S. renewable energy sector has been expanding rapidly in response to rising electricity demand, partly driven by growth in the artificial intelligence industry. Data from the U.S. Energy Information Administration indicates renewable power generation, excluding hydroelectric sources, increased by 8.1 percent year over year during the first four months of 2026, with solar output rising 21.3 percent.

The proposed ban on foreign inverters reflects broader geopolitical tensions intersecting with the global energy transition, highlighting the complexities of balancing security concerns with industrial capacity and market realities.