The European Union is rolling out a green investment fund in the range of €15-20 billion, aimed at supercharging European clean energy infrastructure. There’s just one problem: a significant chunk of that money is likely to end up in the pockets of the same Chinese technology suppliers that Brussels is actively trying to cut out of its energy grid.
The inverter problem
Chinese manufacturers supply roughly 70% of Europe’s solar inverters. These are the devices that convert the DC power generated by solar panels into the AC power that flows through electrical grids. They’re also, according to EU security assessments, potential cybersecurity liabilities.
In May 2026, the European Commission confirmed that projects using inverters from high-risk suppliers, including Chinese firms Huawei and Sungrow, will no longer be eligible for subsidies or EU funding. The move was driven by concerns about grid security vulnerabilities that these suppliers could introduce.
The restriction could affect up to 14 GW of new solar capacity — that’s over 20% of the EU’s annual solar installations potentially caught in regulatory limbo.
