A new market analysis from Wood Mackenzie suggests that the United States is well-positioned to satisfy domestic solar inverter demand following a recent FCC ban on certain foreign products. With over 100 GWAC of new manufacturing capacity scheduled to come online by 2028, domestic production could effectively replace imports. While the industry currently relies heavily on international suppliers—with over 90% of utility-scale and commercial PV inverters sourced from East Asia—the planned expansion of local facilities offers a pathway toward supply chain security and independence from potential future trade restrictions or policy shifts.
The FCC’s recent move to restrict foreign inverter products stems from national security concerns regarding cybersecurity and economic stability. However, the scope of the ban remains a point of contention. Because the current regulations focus primarily on wireless communications, experts are waiting for further guidance to determine how the rules will impact utility-scale central inverters that utilize wired connections. Project owners are particularly anxious about the potential for existing hardware to be cut off from essential firmware updates, while manufacturers are currently working to reassure clients that their specific equipment may fall outside the ban’s parameters.
Historically, the U.S. market has been dominated by Chinese-made technology, which accounted for half of the total market share between 2024 and 2025. Transitioning to domestic manufacturing will likely result in higher upfront costs for project developers due to the differences in labor and production expenses. Analysts anticipate that these price premiums will eventually stabilize as competition grows and the 45X tax credit program begins to phase out. Despite the short-term financial impact, the shift toward domestic production provides developers with long-term certainty, shielding them from the volatility of international trade policies and ensuring a reliable supply of PV inverters.