Spyware suspected on Chinese-made solar equipment By EPN Staff Recent security audits turned up unexpected communication equipment embedded in Chinese-manufactured solar power inverters and batteries, raising alarms about potential vulnerabilities in U.S. energy infrastructure. The presence of these undocumented cellular radios and other devices were first reported by Reuters in May. The discoveries have intensified debates over supply chain security, the need for more domestic manufacturing capacity and whether bad actors in China could disable parts of the U.S. power grid. Why it matters Experts warn these devices may allow unauthorized remote access, potentially triggering blackouts and destabilizing the grid. Given that Chinese companies dominate solar panel production, the potential exposure is massive, though Reuters reported it couldn’t determine how many problematic inverters or batteries have been found. The Department of Energy is investigating. It’s not unusual for solar equipment to have built-in communication devices that can be used to monitor performance and push out software updates, but Reuters reported that these devices were “not listed in product documents.” "While this functionality may not have malicious intent, it is critical for those procuring to have a full understanding of the capabilities of the products received," a DOE spokesperson told Reuters. The bigger picture For some, the discoveries bolster arguments for expanding domestic solar panel manufacturing to reduce reliance on foreign-made components. That industry is growing in the United States, but Chinese imports still dominate the market, and the federal policies helping boost domestic manufacturing are on the chopping block in Congress. The U.S. House of Representatives recently passed a budget bill that rolls back clean energy sector tax credits from the 2022 Inflation Reduction Act (IRA). It remains to be seen whether the Senate keeps these changes as the bill moves – four key senators have publicly backed keeping at least some of the credits intact – but President Donald Trump has been full-throated in his attacks on the IRA’s provisions. Additional details It’s unclear how widespread these devices are, but in Denmark inspections uncovered similarly suspicious components, The Times of London reported. Japan has reportedly launched its own review of Chinese-made panels. U.S. officials have been tight-lipped – the Reuters report relied on anonymous sourcing – but outside experts have expressed worries, and Utility Dive highlighted an incident from November where solar inverters were disabled from China.
