The Federal Communications Commission is reportedly drafting restrictions on foreign-made inverters used in solar and battery energy storage projects, citing concerns that the equipment could be exploited to disrupt U.S. power supplies. No proposed rule has been released, and the effort could still be modified or withdrawn. Recent FCC actions involving foreign-produced drones and consumer routers, however, may indicate how such restrictions could be structured.

If the FCC follows its recent precedent, any restriction is likely to be prospective: new inverter models could face limits on importation, marketing, or sale, while equipment already holding an FCC authorization would generally remain lawful absent further action.

Key considerations for solar and storage project participants:

  • Review projects that rely on foreign-made inverters or integrated battery storage systems.
  • Confirm whether specified equipment already holds FCC authorization.
  • Build model-substitution flexibility into supply and EPC agreements.
  • Address continued software, firmware, and security-update support in supply and warranty terms.
  • Draft change-in-law provisions to capture restrictions on importing, authorizing, selling, or using specified equipment.

Read the full article on stoel.com for the potential FCC framework, the European precedent, and practical steps to take now.

Photo of Brian Nese Brian Nese

Brian Nese practices in the Energy Development group and the Renewable and Thermal Energy Initiatives. Brian focuses his practice on representing renewable energy project developers, owners and operators in drafting and negotiating various project documents, including engineering, procurement and construction agreements, operation and…

Brian Nese practices in the Energy Development group and the Renewable and Thermal Energy Initiatives. Brian focuses his practice on representing renewable energy project developers, owners and operators in drafting and negotiating various project documents, including engineering, procurement and construction agreements, operation and maintenance agreements, balance of plant agreements, supply agreements, and real property agreements. He also assists project developers with mergers and acquisitions, financings, and related due diligence. Brian is a former co-leader of the firm’s energy team and a former managing partner for the firm’s California offices. He encourages you to follow him on Twitter @BNese25 and welcomes LinkedIn connection requests.

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Photo of Zack Taylor Zack Taylor

Zack Taylor focuses his practice on the development, financing, and acquisition of renewable and alternative energy projects. He represents developers, independent power producers (IPPs), and utility-scale investors in complex transactional matters, including project mergers and acquisitions, tax equity financing, and debt structuring. His…

Zack Taylor focuses his practice on the development, financing, and acquisition of renewable and alternative energy projects. He represents developers, independent power producers (IPPs), and utility-scale investors in complex transactional matters, including project mergers and acquisitions, tax equity financing, and debt structuring. His experience spans a diverse portfolio of assets, including utility-scale solar and wind, battery energy storage systems (BESS), renewable natural gas (RNG), and clean hydrogen infrastructure.

Zack advises clients through the full project lifecycle, with a particular emphasis on negotiating the construction and procurement agreements essential to large-scale infrastructure bankability.

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