Reuters report lifts domestic solar equipment makers
Enphase Energy (NASDAQ:ENPH) shares jumped 17.5% on Monday after a Reuters report said the Trump administration is preparing rules that could ban imports of certain foreign-made power inverters on national security grounds.
The report also boosted other U.S. solar companies, with SolarEdge Technologies (NASDAQ:SEDG) climbing 11% and Sunrun (NASDAQ:RUN) gaining 7%.
According to Reuters, the proposed rule is being drafted by the U.S. Federal Communications Commission and would apply to new foreign inverter models used to connect solar installations and battery storage systems to the electricity grid. Sources familiar with the matter said the proposal could be released as early as this year.
U.S. officials are reportedly concerned that China could potentially exploit the devices to interfere with electricity supplies.
Proposal follows similar European action
Reuters reported that the administration’s renewed focus on inverter imports was partly driven by the European Commission’s decision in May to prohibit Chinese-made inverters from publicly funded energy projects.
However, sources cautioned that the proposed U.S. restrictions remain under development and could still be revised or abandoned before being finalised.
Neither the Federal Communications Commission nor the White House commented on the reported proposal.
The Chinese Embassy in Washington said it “firmly opposes the overstretching of the concept of national security and its unjustified suppression of Chinese companies.”
China remains the world’s largest producer of power inverters, with Sungrow Power Supply and Huawei among the industry’s leading manufacturers. Chinese suppliers have expanded their presence in Western markets in recent years through increasingly competitive pricing.