FCC Updates Its Covered List Designation for Foreign-Produced Power Inverters

On August 20, 2026, the Federal Communications Commission (FCC or Commission) issued a Public Notice modifying its recent Covered List designation for foreign-produced power inverters that restricts their authorization, import, and sale. The FCC's recent action follows its July 28, 2026, Public Notice that first added those power inverters to the Covered List. The definition in the July 28 Public Notice was broad enough to potentially capture a much wider range of power-related equipment that does not pose unacceptable security risks. The August 20 Public Notice narrowed the definition of "power inverters" to mean only foreign-produced power inverters that are utility-interactive (as defined in Underwriter Laboratories Standard UL 1741) and capable of remote communications. The August 20 Public Notice also clarified the definition of "foreign-produced power inverters" to exclude power inverters that are eligible for Section 45X clean energy tax credits. The August 20 Public Notice also confirmed that the covered communications element reaches wired connections, such as Ethernet, as well as wireless links.

The Commission's actions were followed by an Executive Order addressing foreign-produced bulk-power system electric equipment as explained in our companion alert, Executive Order 14420: Impacts on Energy Projects, Power Supply, and Data Centers.

Key Takeaways

• The FCC narrowed the designation. The August 20 Public Notice limits covered equipment to foreign-produced, utility-interactive power inverters that meet the UL 1741 standard and are capable of remote communications functionality.
• The compliance process did not change. Covered inverters remain barred from FCC equipment authorization unless they receive a Conditional Approval.
• Existing equipment remains generally unaffected. The original designation was prospective and the August 20 Public Notice maintained that posture. Previously authorized equipment may continue to be imported, sold, marketed, and used, and a limited waiver preserves software and firmware updates through at least January 1, 2029.
• Product-specific review may still be warranted. Coverage may turn on model-specific review of utility-interactive functionality, equipment origin, remote communications capability, and Section 45X eligibility.

How the Covered List Works

The Secure and Trusted Communications Networks Act of 2019 requires the FCC to maintain and regularly update a published list of communications equipment and services determined to pose an unacceptable risk to the national security of the United States or the security and safety of U.S. persons, known as the Covered List. The FCC may add equipment to the Covered List only after a qualifying national security authority releases a determination that such equipment poses an unacceptable risk to national security under the Act.

Once added to the Covered List, equipment is prohibited from receiving FCC authorization under the Commission's rules, 47 C.F.R. § 2.903(a). In addition, under 47 C.F.R. § 2.911, every applicant seeking equipment authorization from the Commission must certify that the equipment in question is not prohibited from receiving an equipment authorization due to its inclusion on the Covered List. Because equipment authorization is generally a prerequisite for importing, marketing, or selling an RF-emitting device in the United States, equipment on the Covered List generally cannot be imported, marketed, or sold without a Conditional Approval. 

As we discussed in connection with the FCC's addition of foreign-produced consumer-grade routers to the Covered List earlier this year, these designations can affect companies well beyond traditional telecommunications providers, including through equipment authorization limits, procurement restrictions, and downstream contract considerations.

The July 28 Public Notice

On July 28, 2026, the FCC's Public Safety and Homeland Security Bureau added foreign-produced power inverters to the Covered List, implementing the first power inverter National Security Determination, in which an Executive Branch interagency body found that foreign-produced power inverters pose an unacceptable risk to the national security of the United States and the safety and security of U.S. persons. The initial determination covered power inverters broadly, reaching devices that convert direct current to alternating current and contain components enabling remote communication, control, sensing, data collection, or monitoring. Concurrently, the Office of Engineering and Technology issued a Public Notice waiving, for a limited period, the prohibition on certain permissive changes to allow previously covered power inverters with existing equipment authorizations to continue to receive software and firmware updates until at least January 1, 2029.

The August 20 Public Notice – What Changed?

The August 20 Public Notice implemented a second power inverter National Security Determination that modified the definitions of "power inverters" and "foreign-produced power inverters" for covered equipment.

First, the Public Notice narrowed and clarified the definition of "power inverters." The original, broader definition included in the July 28 Public Notice could have been read to cover a wider array of power-related equipment. Under the revised definition, only equipment that satisfies both of the following criteria will be considered a covered "power inverter":

• The device changes direct current (DC) to alternating current (AC), including bidirectional devices, and is intended for use in parallel with an electric utility to supply common loads and at times delivers power to the utility. In other words, it is a utility-interactive inverter as that term is defined in UL 1741.
• The device 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.

Second, the Public Notice narrowed the definition of "foreign-produced power inverters." As adopted in the August 20 Public Notice, a power inverter is treated as foreign-produced unless it satisfies one of the two criteria below:

• The power inverter is eligible for the Advanced Manufacturing Production Credit under 26 U.S.C. § 45X for domestic production. This carve-out derives from Section 45X of the Internal Revenue Code, as modified by the One Big Beautiful Bill Act, for certain clean energy tax credits.
• Otherwise qualifies as a "domestic end product" under 48 C.F.R. § 25.101(a). This test comes from the Federal Acquisition Regulation and treats a device as domestic if it is manufactured in the United States and the cost of its domestic components exceeds 65% of total component cost for items delivered in calendar years 2024 through 2028, rising to 75% for items delivered beginning in 2029.

Practical Implications

• The prohibition continues to operate prospectively. It does not require removal of equipment already deployed or previously authorized, and covered devices already on the market may continue to be imported, sold, and used. The immediate effect falls on new products that belong within the revised definition, which generally cannot obtain FCC equipment authorization unless they receive Conditional Approval.
• Ordinary data-center power equipment is less likely to be covered. Because the designation now turns on utility-interactive operation under UL 1741, ordinary rectifiers, uninterruptible power supply (UPS) systems, and similar internal power-conversion equipment are less likely to fall within scope, though device-specific review may still be warranted for any utility-connected, remote-capable infrastructure.
• The FCC has not published a device-level list. Assessing device compliance may require manufacturer information on production location, domestic component content, and Section 45X eligibility.
• Conditional Approval and waiver filings may be worth considering. Manufacturers with potentially affected equipment should consider whether to seek Conditional Approval or an appropriate waiver. 

Related Development: White House Bulk-Power System Executive Order

On August 26, 2026, the president issued Executive Order 14420, declaring a national emergency over foreign-produced bulk-power system (BPS) electric equipment and authorizing the Department of Energy to prohibit or condition certain "transactions" involving BPS electric equipment. The Executive Order reaches some of the same products addressed here, including utility-scale inverters, but it imposes a different framework. Unlike the Covered List designation, which turns on a device's production status and generally applies prospectively, this Executive Order turns on a device's connection with a "Covered Foreign Entity" and could reach equipment already installed and in service. For a full analysis, see our companion alert, Executive Order 14420: Impacts on Energy Projects, Power Supply, and Data Centers.

Looking Ahead

The inverter designation is part of a broader Covered List agenda that has been unusually active this year. These actions tend to be fast-moving and often include an immediate set of Conditional Approvals that should be analyzed for compliance. The Commission also continues to consider additional equipment authorization and supply-chain measures in a pending rulemaking for which the comment window remains open. Companies that manufacture, procure, authorize, or deploy remote-capable power equipment may wish to monitor these developments, and evaluate how both the FCC designation and the new Executive Order could affect their products and supply chains.

+++

Paul Powell is of counsel in DWT's Portland office, Kasey McGee is an associate in the firm's Washington, D.C., office, Alan Galloway is a partner in our Portland office, and Doug Orvis is a partner in our Washington, D.C., office. If you have questions about how the Covered List designation or how the new Executive Order may affect your equipment or operations, please contact any of the authors, another member of our communications team, or your regular DWT attorney. To stay informed, sign up for our alerts.