The European Commission’s move to restrict funding for projects using high-risk inverter vendors marks a turning point for solar cybersecurity. In this article, Uri Sadot, founder of SolarDefend and a longtime renewable energy cybersecurity specialist, explains why banning Chinese inverters may support Europe’s strategic independence, but will not solve the sector’s cybersecurity challenge. The road to greater security must include clear technical standards, stronger asset visibility and practical implementation of NIS2.
The European Commission’s recent decision to restrict EU funding for projects using inverters and other energy technologies from “high-risk” vendors marks a significant moment for the solar industry.
Few in the sector expected Brussels to move this quickly. The financing restrictions are expected to affect an estimated 10-20% of financing flowing into Europe’s solar market and have already been signalled as a policy direction that will expand into wind and battery energy storage systems (BESS).
The EU Commission is just getting started
As dramatic as the funding restriction may be, the real story is still ahead of us. Earlier this year, the European Commission published the draft Cyber Security Act 2 (CSA 2), which explicitly identified solar as a sector under examination. The draft noted that solar remains a priority area for further assessment and recommended the mandatory phase-out of high-risk vendors in 5G infrastructure, another area that has seen cybersecurity controversy. Discussions are now actively taking place in Brussels between policymakers, industry associations, manufacturers, investors and asset owners.
