SolarPower Europe Revokes Huawei’s Membership Over EU Pressure

SolarPower Europe (SPE), a leading renewable energy advocacy group based in Brussels, has removed Chinese electronics giant Huawei from its membership, citing pressure from the European Commission amid an ongoing bribery investigation. The decision, made on April 28, 2025, marks the first time a company has been expelled from the association, which represents over 300 firms and is a key lobbying force for renewable energy in the EU.

Huawei, a long-standing “sponsor” member of SPE, contributed €60,000 annually to the organization. However, the European Commission, wary of engaging with associations tied to Huawei during the investigation, urged SPE to sever ties to maintain its policy influence. The investigation, launched by Belgian authorities in March 2025, alleges that Huawei engaged in corrupt practices involving EU officials, leading to measures such as barring Huawei representatives from the European Parliament and suspending official meetings with the company.

The expulsion coincides with growing concerns over grid security in Europe’s photovoltaic (PV) sector, where Chinese manufacturers dominate. On April 29, 2025, SPE released its European Photovoltaic Grid Security Risk Solutions Report, which calls for a European “inverter security toolbox” modeled on the 5G network security framework. The report highlights cybersecurity risks posed by Chinese inverters, noting that vulnerabilities in devices controlling over 3 GW of capacity could destabilize the grid. It emphasizes the lack of robust regulations for small-scale PV systems, such as rooftop solar, which are often managed by homeowners or small businesses rather than grid operators, making them susceptible to cyberattacks.

Huawei, alongside Chinese firm Sungrow, supplies over 160 GW of PV inverters in Europe, with Huawei holding a 25–30% market share in residential inverters and 30% in large-scale inverters as of 2023, according to industry data. In contrast, European manufacturers like Germany’s SMA have seen their market share drop below 3% since 2022. The 2025 Global Solar Outlook, also published by SPE, underscores the dominance of Chinese suppliers, noting that 95% of PV modules and 80% of inverters in Europe are sourced from China. The report likely addresses the market implications of Huawei’s expulsion, though specific details remain undisclosed.

Critics argue that the EU’s actions, framed as security measures, may be a pretext for protectionism. The Grid Security Report acknowledges that vulnerabilities in Chinese inverters can often be addressed through software updates and that firms like Huawei meet international standards, such as TÜV Rheinland certification. Nonetheless, the EU’s push for “energy sovereignty” and local manufacturing—evidenced by initiatives like the European Solar PV Industry Alliance—suggests a broader strategy to curb China’s influence in critical infrastructure.

The situation echoes Huawei’s 2019 exit from the U.S. inverter market after being added to the U.S. Entity List, which allowed competitors to capture its market share. In Europe, similar dynamics may unfold, with other Chinese firms or local players like SMA potentially benefiting. Adding to Huawei’s challenges, the electricity industry association Eurelectric is considering suspending the company’s activities at its June 2025 board meeting, according to Euractiv.

While Huawei has not been legally barred from selling products in Europe, the investigation and associated restrictions could sway customer preferences, potentially eroding its market share. As Chinese firms continue to dominate the global PV supply chain, the EU’s moves signal a challenging road ahead for Chinese enterprises, which may need to adapt to heightened scrutiny and explore strategies like patent development and regional diversification to maintain their global edge.