The US inverter market is set for a major supply chain shift following new Federal Communications Commission (FCC) rules that ban new foreign power inverter products from approval and sale, according to analysis by Wood Mackenzie.

The research firm said US manufacturers have announced plans for more than 100 GWac of photovoltaic (PV) and power conversion system (PCS) inverter manufacturing capacity by the end of 2027. If those plans materialize, project owners should have domestic alternatives to imported equipment, although at a higher cost.

The shift comes as the US solar market remains heavily dependent on imported inverters. Over the past decade, more than 200 GWac of PV inverters have been delivered for commercial and industrial and utility-scale projects in the country, with more than 90% imported, according to Wood Mackenzie.

More than 70 GW of those imports came from Chinese-headquartered manufacturers, primarily from factories in Southeast Asia. Chinese vendors accounted for nearly 50% of the US inverter market in 2024 and 2025, highlighting the scale of the potential disruption from the new restrictions.

Uncertainty over the FCC ban

Wood Mackenzie said the FCC's decision reflects US government concerns over the country's reliance on foreign inverters, particularly regarding cybersecurity and economic security.

However, the firm noted that questions remain over how broadly the rules will apply. The current definition of "power inverters" focuses on equipment involving wireless communications, creating uncertainty over whether the restrictions will extend to utility-scale central inverters that operate through wired connections.

"The FCC's intent here is clear. The US government determined that the US’s reliance on foreign inverters poses a national security risk, citing both cybersecurity and economic concerns," said Joe Shangraw, research analyst at Wood Mackenzie.

Shangraw added that future FCC guidance will be important in determining the full scope of the restrictions. Leading manufacturers are already informing customers that they believe their products will not be covered by the ban, while some project owners are concerned that their existing inverters could be prevented from receiving critical firmware updates.

Domestic production expected to come at a premium

The transition away from lower-cost foreign equipment is also expected to affect inverter prices in the US.

Wood Mackenzie forecasts that average inverter prices will rise in 2027 as procurement shifts toward domestic products, which currently carry higher costs for parts, labor and manufacturing.

The research firm expects prices to moderate over the longer term as domestic production scales up and competition increases. However, the phase-out of 45X manufacturing production tax credits from 2030 onwards is expected to create renewed upward pressure, particularly in the residential and commercial inverter segments.

For project developers and owners, domestic sourcing could therefore provide greater supply chain certainty, but at an additional cost.

"The price premium for domestic inverters is a real consideration for project owners, but it provides supply chain certainty from not only this FCC ban, but from any future policy that could further restrict imports," Shangraw said.

Despite the disruption, Wood Mackenzie believes the US is better positioned than it has been previously to respond to a potential shift toward domestic inverter supply.

"If this proves to be a major market shift, the US is better positioned now to meet new domestic demand than ever," Shangraw said. Wood Mackenzie forecasts that US PV/PCS inverter manufacturing will be able to deliver more than 100 GWac of capacity by the end of 2027.