FCC updates foreign inverter ban to include wired devices, adds 45X safe harbor

The Federal Communications Commission has updated its rules on foreign-made solar inverters, the devices that convert power from solar panels into electricity your home can use and connect to the grid. The ban now covers more equipment than before. It applies to any grid-connected inverter that has, or is built to accept, remote communication hardware working over Ethernet, Wi-Fi, cellular, or Bluetooth, whether that connection is wired or wireless. Previously the focus was mainly on wireless equipment.

The FCC also created a new way for inverter makers to avoid being classified as "foreign-made." If a manufacturer qualifies for a federal tax credit under Section 45X of the Inflation Reduction Act, its inverters won't count as foreign under this ban, regardless of where the company is based. This gives manufacturers another path besides the existing Build America, Buy America rules, which require a set share of U.S.-made components. That said, a law firm tracking the issue noted that separate rules aimed at companies with strong ties to China could still disqualify some manufacturers from claiming the 45X credit in the first place, even if they'd otherwise qualify.

A few other changes: plain AC-to-DC converters and inverters used in off-grid systems are no longer on the restricted list. Inverters already installed or previously approved can still get routine software and security updates. And makers will be allowed to import small batches of otherwise-banned equipment strictly for lab testing and research, not for sale or installation.