Federal Communications Commission Prohibits the Sale of Certain Foreign-Produced Power Inverters

At a Glance

• Where power inverters have not yet been delivered, we recommend requesting the supplier to confirm that the applicable power inverter models have already received all applicable FCC equipment authorizations.
• If the power inverter supplier did not obtain FCC authorization, it must be determined: (1) if the supplier was required to obtain such authorization, (2) if it is now required to do so, or (3) if an exception can be utilized.

In July 2026, the Federal Communications Commission (FCC) issued a determination prohibiting the sale of certain foreign-produced power inverters, updated the "Covered List" of communications equipment and services to include those power inverters deemed to pose an unacceptable risk to the national security of the United States, and released FAQs on the updates to the Covered List.

What This Means for Inverter Procurement on Construction Projects

For inverter procurement on construction projects where the inverters have not yet been delivered, we recommend requesting confirmation from the inverter supplier that the applicable projects' power inverter models have already received all applicable FCC equipment authorizations.

This confirmation is needed to assess the potential impact of the FCC update on a project.

Potential Impacts

Prior Authorization Obtained

If the inverter supplier obtained prior authorization, then the July 2026 FCC communications likely do not impact a construction project.

No Prior Authorization Obtained

If the inverter supplier did not obtain the authorization, it must be determined: (1) if the supplier was required to obtain such authorization, (2) if it is now required to do so, or (3) if an exception can be utilized.

1. Supplier Previously Required to Obtain Authorization, but Did Not

   If the inverter supplier was required to obtain authorization, but did not, the supplier may have breached the applicable law compliance provision that should be in the supply agreement.




2. Supplier Not Previously Required to Obtain Authorization

   If the inverter supplier was not previously required to obtain authorization, we recommend determining if the supplier is now required to obtain authorization.

   The supplier must confirm if the supplied product falls within the "Power Inverter" definition shown at the end of the July 27, 2026, notice:

   Power Inverter: For the purpose of this determination, the term “power inverter” shall mean a device: (a) A bi-directional power device or system that converts direct current electricity to alternating current electricity, or converts alternating current electricity to direct current electricity, to include microinverters, string inverters, central inverters, and hybrid (battery-based) inverters; and (b) Contains components that enable remote communication, control, sensing, data-collection, or monitoring through Wi-Fi, cellular, Bluetooth, or other similar connections.

   The definition includes a reference to Wi-Fi and Bluetooth transmission that may cause certain products to fall outside of the prohibition. Some supplier specifications reference an ethernet or hard-wire connection.

   If the inverters do fall within the above definition, we recommend analyzing the appropriate change-in-law provisions in the supply agreement.




3. Can an Exception Be Utilized?

   The FAQs include that it does not affect the "continued use of such devices … already purchased":

   • New foreign-produced advanced robotic devices and power inverters are generally prohibited from receiving FCC authorization to be imported, marketed, or sold in the U.S.
   • However, this does not affect:
     • The continued importing, marketing, or selling of existing models of advanced robotic devices and power inverters that that have already received FCC equipment authorization.
     • The continued use of such devices that consumers have already purchased.

   We do not yet have clear guidance on whether inverters that have been delivered but not commissioned meet the "use" qualification.

   We also do not have clear guidance on whether prior partial payments to a supplier meet the "already purchased" qualification.

For More Information

For further information, you may contact the authors.