The FCC expanded its national security Covered List rules to explicitly target Ethernet-connected inverters while creating a compliance pathway for 45X-eligible domestic manufacturing.

The U.S. Federal Communications Commission (FCC) issued updated guidance on its foreign inverter ban, expanding the restricted equipment list and clarifying how manufacturers can avoid the block.

Following input from the U.S. Department of Defense, the FCC broadened its cyber-risk definition to cover hardwired equipment. The ban now applies to any grid-interactive inverter that contains, or is built to accept, remote communication hardware operating over Ethernet, Wi-Fi, cellular, or Bluetooth, whether wireless or wired.

The agency also clarified that inverters manufactured by entities eligible for Section 45X advanced manufacturing production credits under the Inflation Reduction Act will not be classified as foreign-made under the ban.

This creates an alternative to standard Build America, Buy America Act (BABA) rules, which require U.S. component costs to exceed 65% of the total equipment cost through 2028 and 75% starting in 2029.