45X-eligble inverters are not part of foreign ban, FCC clarifies

The Federal Communications Commission has adjusted its recent ban on foreign-made solar inverters, the devices that convert power from solar panels into electricity your home can use. Last month the FCC barred new imports of foreign-produced inverters, citing cybersecurity and supply-chain concerns. It has now clarified which inverters count as "foreign."

Previously, an inverter counted as domestic only if it had 65% U.S.-made content. Now, any inverter that qualifies for a federal manufacturing tax credit known as 45X will be treated as domestic, regardless of where the company making it is based. Manufacturers claiming that credit already can't get help from certain foreign entities the government considers a risk, so officials decided those inverters don't pose the same security concern. The FCC also clarified that the ban covers both wired and wireless inverters, since either type could potentially be accessed remotely.

For homeowners, this mostly affects the solar equipment market rather than existing systems. The ban applies only to new inverter models going forward. Any inverter already installed on a home, or already approved by the FCC before this rule, can keep operating as normal. If you're planning a new solar installation, this change could affect which inverter brands and models are available, since it opens the door to some foreign-made inverters that meet the tax-credit standard, while still blocking others that don't.