Technical Analysis
Stop EU funds for Chinese inverters: it's up to you if you have projects financed or in the public pipeline
📅 June 2026
⏱ Reading: 5 minutes
PVclick Strategy Team
Operational and commercial analysis for the Italian PV sector
What you will find in this article
- What exactly changed on May 4, 2026 (and what didn't change)
- Key deadlines: transition period, exemptions, complete decommissioning
- Because the squeeze also concerns BESS PCS, not just PV inverters
- How to separate your “EU funds” portfolio from your “non-EU funds” portfolio without throwing away Tier 1 convenience
What the EU Commission decided on 4 May 2026
The declared motivation is the cybersecurity of energy infrastructures: new generation inverters are devices connected to the cloud, manageable remotely, integrated into SCADA systems, and could theoretically become a gateway for cyber attacks on European electricity grids.Il Fatto Quotidiano has reconstructed the Commission’s concerns, while Euronews published the official framework.
📊 What has NOT changed
Southern Italy and the islands have networks with low inertia and high PV penetration, where the TSOs already ask for frequency support capacity in the new connecting agreements. A utility-scale plant with “made in” grid-forming qualifies directly for the ancillary markets (MSD, capacity payment) and, coupled with BESS, for the MACSE. Without grid-forming, the same projects risk more stringent curtailment constraints.
Deadlines that change your plans
| Data | Cosa scatta | Chi è impattato |
|---|---|---|
| 4 maggio 2026 | Annuncio ufficiale della misura | Tutti i progetti che chiedono fondi UE post-data |
| Maggio – novembre 2026 | Periodo transitorio per progetti già avanzati | Progetti con istruttoria fondi UE in corso |
| 1° novembre 2026 | Termine ultimo per richiedere esenzioni (valutate caso per caso) | Imprese che già utilizzano tecnologie cinesi e vogliono mantenere l'accesso ai fondi |
| 15 aprile 2027 | Dismissione completa fornitori a rischio per progetti non connessi alla rete UE | Progetti off-grid, isolati, infrastrutture critiche specifiche |
The deadlines are operational: anyone who is planning a project with access to EIB funds or EU programs must check the signing date of the financing contract and consequently the applicable regime. For projects whose EU funding investigation process is underway, a risk analysis must be carried out immediately on the financeability of the planned inverter BOM.
L'estensione critica: il divieto vale anche per i BESS PCS
The knock-on effect is important: coverage pv magazine International has calculated that the BESS segment added to the perimeter is worth several GWh per year of new European capacity, with a Chinese share (Sungrow, Huawei FusionSolar, EVE Energy in PCS) very significant. The supply chain of European PCS (SMA, Ingeteam, Power Electronics) is structurally smaller and delivery times are already getting longer.
The two tracks of your portfolio 2026-2028
1. Binary "EU funds": brand diversification needed
For projects with EIB, second generation PNRR funds, LIFE/Innovation Fund programs, capacity payment with EU subsidies, MACSE in classified areas, it is time to build an inverter portfolio on brands that are not at risk: European manufacturers (SMA, Fronius, Ingeteam, Power Electronics), American brands (Generac), Japanese (Mitsubishi), Korean (LG Electronics where operational), Swiss (Studer). The price premium compared to Huawei/Sungrow exists, but it is offset by access to financing. Without access to the fund, there is no project.
2. "Non-EU funds" track: Chinese Tier 1s remain the right choice
For private projects without access to community public funds, residential, commercial projects financed with private leasing, pure industrial self-consumption, ready-made kits for independent installers, the technical and economic evaluation does not change. Huawei, Sungrow, Solis and the other Chinese Tier 1s continue to offer the best price/performance ratio on the market and a direct import supply chain that remains competitive. Passing the general media message “Chinese inverters banned” as a universal reference is a commercial mistake that causes perfectly legal orders to be lost.
3. The hybrid binary: mixed contracts
For portfolios that include both types of project, a selection matrix must be constructed at the time of the estimate: type of expected financing (private/public), access to direct/indirect EU funds, possibility of requesting exemption by 1 November 2026. The choice of inverter becomes an integral part of the financial structure of the construction site, not just the technical part.
What to do in the next six months
1. Map the project pipeline
Separate signed and pipelined projects between “with access to EU funds” and “without”. For each project in the first group, check the expected date of signature of the financing contract and apply the corresponding regime. For projects whose investigation is already open in May 2026, evaluate whether it is best to request exemption by 1 November 2026 or redesign with inverters not at risk.
2. Pre-allocate alternative supplies
SMA, Fronius and Ingeteam have limited production capacity compared to the European demand that shifts to them. Those who book volumes by Q3 2026 bind reasonable delivery times, those who react later will find themselves with structurally longer lead times and higher prices. It is a mechanism similar to what the modules market is already showing.
3. Rewrite the contractual documentation
For public projects, include in the supply contracts a clause for adaptation to the EU funds regime applicable on the date of signature of the loan, with the possibility of replacing the inverter BOM in the event of regulatory changes during construction. It is a contractual protection that today is worth more than the unit price of the device.
The side effect: Beijing's reaction
The Chinese response, reported by Borsa Italiana via Radiocor and pv magazine International, was immediate and harsh: the Chinese Ministry of Commerce (MOFCOM) asked for the removal of the “high risk” classification and threatened countermeasures on trade and bilateral supply chains. It is a factor that weighs on the supply chain of modules, components and, in the future, the BESS themselves, because the countermeasures could arrive upstream (e.g. controls on the export of galium, germanium, cell materials). Translated: the pressure on the prices of raw materials for photovoltaic is destined to rise further compared to the trend already underway.
How PVclick supports inverter diversification
For those who are reconfiguring their inverter portfolio on two tracks, direct import remains the right tool on both sides. For “non-EU funds” projects the convenience of Chinese Tier 1s continues to apply, with the Huawei range and other Tier 1s available on residential and commercial kits. For “EU funds” projects, it is time to structure direct agreements with European producers and non-at-risk Asian Tier 1s, avoiding the mark-ups of traditional distribution which, in the phase of displaced demand, raises the margin on the sole supplier. The inverter+BESS coupling in utility-scale projects now requires explicit verification also on the PCS, not just on the battery modules.
The three actions to close immediately
- Map the 2026-2028 project pipelineseparating “with EU funds” from “without EU funds”, and verify for each the expected financing signature date
- Pre-allocate the non-at-risk inverter supplywith SMA, Fronius, Ingeteam and other European/allied brands, before the European rush raises the leads time
- Rewrite supply contractswith regulatory adjustment clauses to protect the margin in the event of regulatory changes during construction
Do you need to reconfigure your inverter portfolio for 2026-2028 projects?
PVclick supports installers, EPCs and developers in direct imports both from Chinese Tier 1 (for private projects) and from European and Asian Tier 1 producers not at risk (for projects with EU funds). Quotes on real volumes and Italian team for logistics and customs.
Visual two-track timeline of key deadlines (4 May 2026 announcement, transitional period May-November 2026, 1 November 2026 exemption deadline, 15 April 2027 complete divestment of non-EU network projects).
