Goldman Sachs: Proposed US Ban on Chinese Inverters Has Limited Impact on ENPH and SEDG
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On June 30, 2026, Reuters reported that the Trump administration is drafting a ban on foreign inverter imports, citing concerns over potential power grid disruptions. Goldman Sachs believes that if implemented, the proposed rule—drafted by the Federal Communications Commission and potentially published this year—would have a limited impact on the residential and commercial & industrial (C&I) markets. Chinese inverter manufacturers have already seen their market share decline in these segments. Conversely, the policy could significantly disrupt the utility-scale market, where Chinese companies like Sungrow currently dominate.
The investment bank notes that this is not an entirely novel initiative; similar efforts in 2019 and the previous summer ultimately failed. Furthermore, the regulation could be heavily modified or never enacted. However, the news serves as a marginal tailwind for both Enphase Energy and SolarEdge Technologies, as they could capture additional market share. The benefit is arguably more pronounced for SolarEdge due to its larger C&I exposure.
According to Ohm Analytics, ENPH, SEDG, and Tesla collectively hold roughly 90% of the residential inverter market. Goldman Sachs maintains its Buy rating on Enphase with a target price of $57, while sustaining its Sell rating on SolarEdge with a target price of $34.