The US solar industry is preparing for a major supply chain overhaul after Federal Communications Commission restrictions on foreign-made power inverters threaten to disrupt a market that has long depended on imports, Wood Mackenzie strategists said in a note on Friday.
Wood Mackenzie analysts said domestic manufacturers are projected to have over 100 gigawatts of alternating-current photovoltaic and power-conversion-system inverter production capacity by the end of 2027.
The shift comes as the US solar market moves away from overseas suppliers after the FCC determined that reliance on foreign inverters could pose national security risks linked to cybersecurity and economic vulnerabilities.
Over the past decade, over 200 GW ac of solar inverters have been deployed across US commercial, industrial and utility-scale projects.
Wood Mackenzie analysts said over 90% of those units were imported, with Chinese-headquartered manufacturers accounting for over 70 GW of deliveries, from factories in Southeast Asia.
The consultancy said Chinese suppliers have strengthened their position in recent years, capturing almost half of the US inverter market in 2024 and 2025.
"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," Joe Shangraw, research analyst at Wood Mackenzie, said.
However, Shangraw noted that the ban's current definition of "power inverters" is based on wireless communications, which raises questions about application, particularly for utility-scale central inverters that operate over wired connections.
The FCC restrictions have created uncertainty among solar developers, particularly over whether existing equipment could face limitations on software and firmware updates.
Meanwhile, the transition toward domestic production is projected to increase costs for US solar projects in the near term as developers replace cheaper imported equipment with domestically manufactured alternatives.
Wood Mackenzie expects average inverter prices in the US to rise in 2027 as procurement shifts toward products with higher labor, component and manufacturing costs.
Over time, prices could ease as domestic production expands and competition increases.
However, the scheduled phase-out of US clean energy manufacturing incentives under the 45x advanced manufacturing production tax credit beginning in 2030 could put renewed pressure on prices. This was especially noticeable in residential and commercial inverter markets.
The US solar sector has sought to localize manufacturing following disruptions from global supply chain constraints, trade restrictions and efforts to reduce dependence on Chinese clean energy technology.