Western Inverter Makers Ready To Meet EU Solar Demand As High-Risk Vendors Face Funding Ban

The European Union’s decision to phase out the use of inverters from high-risk countries in publicly funded energy projects has sparked questions about whether Western manufacturers can meet the growing demand. According to new data from S&P Global Energy and findings shared by the European Solar Manufacturing Council (ESMC), Western inverter manufacturers already have the production capacity, market presence, and technical expertise needed to support Europe’s solar energy expansion.

S&P Global Energy estimates that European inverter manufacturers currently have a production capacity of around 104 GWac. In addition, manufacturers based in the Americas and the Asia-Pacific region, excluding China, have more than 120 GWac of production capacity available. Of the European capacity, around 53 GWac is already available to serve the European market, which is nearly equal to the total solar installations expected across the European Union in 2025. This suggests that replacing inverters supplied by companies from high-risk countries would not create a supply shortage.

Christoph Podewils, Secretary General of ESMC, said the available manufacturing capacity demonstrates that supply is not a challenge. According to him, the industry already has the capability to replace high-risk vendors without disrupting Europe’s renewable energy deployment.

The report also highlights the strong presence of Western inverter manufacturers in Eastern Europe. An ESMC survey covering six major Western manufacturers found that they have a combined installed base of approximately 14 GW across eight Eastern European markets. These companies have been operating in the region since around 2010, giving them nearly 15 years of experience. Together, they employ about 330 sales and service professionals who either work locally or provide dedicated remote support. The survey also indicates that these manufacturers can significantly expand their sales and service operations within six months if required.

Poland has the largest presence of Western inverter suppliers among the surveyed countries. All six manufacturers operate in the country, with an installed base of around 4,430 MW and approximately 74 dedicated staff. They are also capable of increasing their operations within three months. Other important markets include Hungary with 1,831 MW of installed capacity, the Czech Republic with 1,468 MW, Romania with 1,147 MW, Bulgaria with 810 MW, and Slovakia with 364 MW. In each of these countries, five or six of the surveyed manufacturers already have an established presence and provide local support. ESMC noted that the survey covered only six companies, meaning the actual presence of Western manufacturers in Eastern Europe is likely even larger.

Cost is another important factor in the discussion. According to analysis by Wood Mackenzie, using a Western-made inverter increases the overall cost of a utility-scale or commercial solar project by only about 2%. For residential solar systems using string inverters, the additional cost is estimated at around 3% to 4%, while systems using micro-inverters, power optimizers, or hybrid inverters could see costs rise by up to 8%. The analysis also found that Eastern European markets face similar costs to countries such as Germany and Spain, indicating that choosing Western suppliers does not place Eastern Europe at a significant financial disadvantage.

Podewils described the inverter as the “brain” of a solar power system, emphasizing that control over inverters also means control over critical energy infrastructure. He said the discussion about Europe’s ability to move away from high-risk inverter suppliers is effectively settled because manufacturing capacity, technical expertise, and regional support networks are already in place.

The latest figures come as the European Union implements new rules preventing public funding from being used for energy projects that rely on inverters supplied by companies owned or controlled by entities from countries considered high-risk, including China, Russia, Iran, and North Korea. The policy applies across all EU financial instruments and is designed to prevent companies from bypassing the restrictions by shifting production or creating subsidiaries in third countries.