CITIC Securities: The EU plans to tighten subsidies for Chinese inverters, with limited actual impact

CITIC Securities Research Report states that recently the European Union plans to tighten funding support for projects involving Chinese inverters following the IAA Act. After in-depth research, CITIC Securities believes: (1) This new policy is consistent with the direction of the IAA, although it is not part of its supporting detailed rules, it can be seen as a preliminary step related to the Act; (2) The new policy covers projects relying on EU-level financing support, mainly affecting centralized projects in Eastern Europe, while the impact on market-oriented projects in Western Europe and behind-the-meter solar storage projects in various countries is relatively limited; (3) In conjunction with the IAA, the pace of localizing in Europe is relatively slow, coupled with a short-term gap, and it is expected that only after 2028–2030 can a more complete local supply chain be gradually realized. Additionally, the Act retains exemption space, member states have flexibility in implementation, and the global inverter market is becoming increasingly fragmented. In the long term, global competitiveness remains the core key for Chinese companies to respond to policy disruptions. (People’s Financial News)