FCC Substantially Revises Covered List Restrictions on Foreign-Produced Power Inverters

On August 20, 2026, less than a month after adding foreign-produced power inverters (an electronic device that converts direct current to alternating current) to its Covered List, the FCC, responding to a determination from the Department of War, has substantially revised the designation. As we discussed in our earlier client alert, the July 28, 2026 Public Notice (DA 26-786) added foreign-produced power inverters with remote connectivity to the FCC’s Covered List, effectively prohibiting new equipment authorizations (enabling importation and marketing) for such devices. In the August 20, 2026 Public Notice (DA 26-870), the Commission materially narrows (and in certain respects tightens) its definition of power inverters.

The FCC’s initial action defined a power inverter broadly as any device that changes DC power to AC power, including bidirectional devices, with remote connectivity. The revision limits the applicability of the new policy to inverters:

• That change DC power to AC power, including bidirectional devices, that are intended for use in parallel with an electric utility to supply common loads and sometimes deliver power to the utility, i.e., a utility-interactive inverter as that term is defined in UL 1741 Sections 2.1.23, 2.1.52; and
• That contain, or are designed, equipped, or configured to accept, a component that enables remote communication, control, sensing, data-collection, or monitoring through Ethernet, Wi Fi, Cellular, Bluetooth, or other similar communications connections, whether wired or wireless.

Non-utility-interactive inverters are no longer covered under this definition, as DoW has determined they “generally do not pose [a] risk to the public utility grid.” DoW further found that the risk from such devices is “limited to local impacts which can generally be managed on a local system level and do not threaten the interconnected power system.”

While the scope has been narrowed, the connectivity requirement has been tightened. DoW clarified “[f]or the avoidance of doubt” that “power inverters that contain, or are designed, equipped, or configured to accept, a component that enables remote communication, control, sensing, data-collection, or monitoring through Ethernet or other similar connections pose the same unacceptable risks described in the First Power Inverter National Security Determination as power inverters with wireless connectivity.”

Inverter users should check the UL 1741 definitions to determine whether their inverters are utility-interactive or non-utility-interactive. Utility-interactive inverters should not be screened out merely because connectivity is wired, removable, or packaged separately.

FCC also revised a definition of “foreign-produced power inverters” that now include power inverters as defined above that are not either:

• Eligible for the Advanced Manufacturing Tax Credit in 26 U.S.C. 45X for domestic production or
• A domestic end product as defined in 48 CFR 25.101(a) because they are manufactured in the United States and the cost of domestic components exceeds 65% of the total component cost for items delivered in calendar years 2024 through 2028 or 75% for items delivered starting in calendar year 2029.

The Conditional Approval process remains available for foreign-produced power inverters that remain on the Covered List. Applicants must provide the required information contained in the Power Inverters Guidance Document and submit their applications by January 1, 2028.