FCC Issues Updates To Covered List Entry On Foreign-Produced Power Inverters

On August 20, 2026, the Federal Communications Commission (“Commission”) issued a Public Notice with significant modifications to the inclusion of power inverters on the Commission’s “Covered List.” As we described in a previous Legal Update, foreign-produced power inverters were added to the Covered List on July 28.

Items on the Covered List are prohibited from receiving equipment authorizations from the Commission, and thus generally cannot be imported, marketed, or sold in the United States. Exemptions are available for power inverters that have received “Conditional Approvals” from the Department of War (“DoW”) or the Department of Homeland Security (“DHS”).

Updates to the Power Inverters Covered List Entry

The initial inclusion of power inverters on the Covered List was made pursuant to a National Security Determination from an Executive Branch interagency body. Under the new National Security Determination (“Second Determination”) from the DoW, the Public Notice makes three important changes to the Covered List entry for power inverters.

First, the Second Determination clarifies that Covered List inverters include devices that contain components with wired connectivity. The initial National Security Determination and Covered List entry included inverters with “components that enable remote communication, control, sensing, data collection, or monitoring through WiFi, cellular, Bluetooth, or other similar connection,” which many understood to mean similar wireless connections.

The Second Determination clarifies that the phrase “similar connection” includes not just wireless components, but also “components with wired connectivity.” The Second Determination makes this clarification based on a determination 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.” As a result, the Covered List definition of such inverters includes those with wired connectivity, which now reaches Ethernet-connected inverters.

Next, the Second Determination clarifies that certain inverters are not considered “foreign-produced.” Specifically, inverters “that are eligible for the section 45X tax credit” (i.e., the Advanced Manufacturing Tax Credit for domestic production of certain energy-related components, 26 U.S.C. § 45X), are not considered foreign-produced since they are determined not to pose the same security risks as other power inverters.

Finally, the definition of “power inverters” has been revised to align with the definition in Underwriters Laboratories Standard UL 1741. The resulting definition describes a “power inverter” as an electronic device that:

• Changes dc power to AC power, to include bidirectional devices, that is 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
• Contains, or is 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 connections, whether wired or wireless.

Conclusion

The Commission’s updates provide clarity and important modifications to the Covered List entry for power inverters, especially by clarifying that the definition includes inverters with both wired and wireless connectivity. Interested parties should closely analyze these changes and their impacts. These updates also demonstrate the fluidity of the application of the Covered List to an increasing number of key technology products. Mayer Brown attorneys are deeply familiar with the Commission’s actions in this area and stand ready to assist.