FCC updates Covered List with power inverters and advanced robotics, posts enforcement roles

Executive summary

The Federal Communications Commission (FCC) has banned new approvals of foreign-produced advanced robotic devices and power inverters that contain components that provide remote connectivity. Foreign-produced models that have not previously received authorization cannot be imported or sold. Specifically, on July 28, 2026, the FCC added foreign-produced advanced robotic devices and power inverters to its Covered List of communications equipment and services determined to pose an unacceptable risk to U.S. national security. This follows its addition of foreign-produced routers in March and uncrewed aircraft (drones) in January. Equipment on the Covered List cannot receive FCC authorization for importation and sale in the United States, absent a grant of Conditional Approval by the U.S. Department of Defense (DoD) and/or the U.S. Department of Homeland Security (DHS). The FCC clarified and refined the new listing on August 20, 2026.

The FCC just posted job announcements seeking enforcement attorneys, which will provide teeth to the recent additions to the Covered List.

As of this post’s publication, the FCC has already modified the scope of the prohibition as to power inverters. This may signal that additional clarifications or modifications are likely in the near term as industry reacts to the new listings. The new listings affect a variety of sectors, including:

• Energy: There are likely implications for utility-scale string and central inverters, microinverters, hybrid battery-based inverters, and power conversion systems (PCS) inside battery energy storage system (BESS) enclosures. Companies across the energy value chain (developers, owners, EPCs, equipment suppliers, offtakers, lenders, and investors) may be affected.
• Manufacturing: The determinations likely reach most autonomous robots that are used in industrial settings, such as assembly, shipment, and transportation, that employ AI to sense the environment and move.
• Consumer electronics: Consumer robotic devices with smart environmental sensing capabilities with a combined weight over 4.4 pounds (including any charging docks).
• Mining: Autonomous mining equipment, including robotic drilling systems, hauling vehicles, and remote-operated machinery that employs AI sensors for navigation and environmental monitoring.
• Commercial agriculture: Advanced robotic devices used in commercial farming operations, such as autonomous tractors, harvesting robots, and precision agriculture equipment with AI-enabled environmental sensing.

Companies in these spaces should evaluate their supply chain for key components and determine whether they need to seek Conditional Approval by the FCC’s January 1, 2028, deadline. U.S. companies can continue to use foreign-produced power inverters and advanced robotic products that they have already purchased, and importers and distributors of such equipment can continue to import and sell previously approved products. 

Importation of small batches of nonapproved equipment for testing and evaluation purposes remains excepted, but as discussed below, the FCC has proposed narrowing that exception.

What changed

The FCC, acting on National Security Determinations, placed the two new location-based categories of equipment on the Covered List. As first evidenced by the recent additions of foreign-produced routers and uncrewed aircraft systems (UAS), the process underlying the Covered List has shifted its focus from specific entities (such as Huawei) to high-risk categories of products. And instead of a company-by-company, or even country-by-country, ban, the FCC has opened with blanket prohibitions that will presumably be modified by Conditional Approvals. One effect of this approach is to shift the initial burden to the private sector to identify candidates for exemptions to a default rule instead of relying on government resources to proactively identify specific threats.

Foreign-produced devices

As with UAS and routers, power inverters and advanced robotics devices may not receive FCC certification if they are “foreign-produced.” The regulations define “foreign-produced” as any article that would not qualify as a “domestic end product,” as that term is defined under the Buy American Act standard in the Federal Acquisition Regulation (FAR). At a high level, this means that (1) the device must be produced in the United States, and (2) the cost of domestic components must be at least 65% of the cost of all components (rising to 75% in 2029).

Section 45X exception for power inverters

The FCC updated the power inverter definition on August 20, 2026, after DoD issued its Second Power Inverter National Security Determination. The FCC clarified that power inverters that are eligible for the Advanced Manufacturing Tax Credit under Section 45X of the Internal Revenue Code will not be considered foreign-produced and therefore not be included under the Covered List. Section 45X generally provides a production tax credit for specified energy components, including certain inverters, that are produced by the taxpayer in the United States and sold to an unrelated person. Thus, the Section 45X pathway does not provide an exception from the FCC rule’s U.S.-production requirement. Rather, it provides an alternative to the separate domestic-content requirement under the “domestic end product” test. A U.S.-produced inverter that does not satisfy the FAR domestic-component-cost threshold may nevertheless fall outside the Covered List if it is eligible for Section 45X.

As amended by the One Big Beautiful Bill Act, an otherwise qualifying eligible component also must satisfy the applicable material-assistance rules relating to prohibited foreign entities (PFEs), including the applicable material assistance cost ratio (MACR) threshold. The MACR is determined by reference to the taxpayer’s direct material costs for production of the component and the portion of those costs attributable to property mined, produced, or manufactured by a PFE. In effect, the Section 45X exception substitutes a non-PFE cost analysis for the FAR domestic-content cost analysis.

The new classes of equipment

The FCC has barred providing authorization for the following two types of equipment:

Power inverters

Under the new listing, as modified in August, “power inverter” is defined as a device that meets the following criteria:

1. It changes DC power to AC power, including bidirectional devices, that is “intended for use in parallel with an electric utility to supply common loads and sometimes deliver power to the utility,” meaning a “utility-interactive inverter” as defined in Standard UL 1741, Inverters, Converters, Controllers and Interconnection System Equipment for Use sections 2.1.23, 2.1.52; and

2. It 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.

This category includes microinverters, string inverters, central inverters, and hybrid (battery-based) inverters.

Advanced robotic devices

“Advanced robotic devices” subject to the rule include any mechanical mobile device, including autonomous mobile robots, humanoid robots, and quadrupeds, that meets all of the following requirements:

• Is capable of locomotion, obstacle avoidance, navigation, or movement on the ground
• Operates at a distance from a human operator or supervisor based on commands or in response to sensor data or any combination thereof
• Has a combined weight (including the device and any applicable ground or docking station) of more than 4.4 pounds
• Contains a sensor capable of perceiving its environment
• Contains a component capable of providing network connectivity (wired or wireless, including Bluetooth/WiFi, cellular, or satellite) with connection speeds of at least 200 kbps in either direction
• Runs software locally or remotely, including firmware and AI or machine-learning model weights, that controls the robot’s autonomous navigation, movement perception, data collection, or remote command-and-control

The rule excludes several classes of robotic devices, including devices that may be regulated elsewhere, such as UAS, certain medical tools, marine robotic devices, and “connected vehicles,” as defined under 15 CFR § 791.301.

Prior authorizations remain effective, and updates are permitted

The FCC’s updated designations only reach new models of foreign-produced advanced robotic devices and power inverters. They do not prevent the continued importing, marketing, or selling of existing models of advanced robotic devices and power inverters that have already received FCC equipment authorization prior to July 28, 2026. Nor do they prevent the continued use of such devices that consumers already possess.

Through a waiver of the FCC’s rules at 47 CFR §§ 2.932(b) and 2.1043(b), the FCC will continue to allow basic software and firmware updates for devices previously authorized or within the United States at least through January 1, 2029.

Connections with the FCC’s July 23, 2026, third report, order, and further notice of proposed rulemaking

The FCC issued its third report and order regarding protecting the American supply chain on July 23, 2026. Under that order, manufacturers may no longer obtain authorization for new devices that incorporate component parts made by banned entities, even though the finished products from those entities were prohibited. The FCC, however, clarified that these new rules targeting the “component-part loophole” do not apply to location-based Covered List determinations. Because the power inverter entry on the Covered List is location-based, the new component-part prohibition likely does not apply to power inverters integrated into devices that are not independently included on the Covered List.

The FCC also announced its intention to narrow current exceptions to import restrictions that apply to the Covered List. Among other changes, the FCC plans to limit the “testing and evaluation” exception to 40 units (down from 4,000). The FCC also plans to expand the current exception for equipment imported for U.S. government to extend to equipment imported to develop products exclusively for U.S. government use.

Key open questions

The above leaves significant questions that should be discussed in the coming months, including the following:

• Device versus component: The line between a covered “device or system” and a subcomponent within a larger system is not precisely drawn. For BESS integrators, whether the PCS alone is covered or whether the entire enclosure constitutes the “system” matters for authorization scope in light of the recent third report and order.
• Transmission-grade conversion equipment: Whether large-scale grid-tied conversion equipment (e.g., HVDC converters, STATCOM devices) falls within the “power inverter” definition remains an open question.
• “Sufficient evidence” standard: New certification applications must certify that equipment is not covered, supported by “sufficient evidence,” but the FCC has not prescribed exactly what documentation will satisfy that standard.

What companies should do now

Producers, importers, and distributors

• Evaluate onshoring and Conditional Approval pathways. The Conditional Approval process requires applications by January 1, 2028, and functions more like an onshoring commitment than a security-audit pathway. Applications must include detailed corporate structure, supply chain, bill of materials, country of origin, and a time-bound U.S. manufacturing plan with quarterly reporting.
• Prepare customer communications. Develop messaging for downstream customers regarding authorization status, product availability changes, and any planned model substitutions.
• Evaluate proposed updates. A waiver effective until at least January 1, 2029, authorizes certain software and firmware updates to previously approved models. Proposed updates should be assessed prior to production to ensure that they do not affect a prior approval.
• Monitor for Conditional Approval grants. Track FCC announcements for Conditional Approvals that may affect competitive positioning or supply availability.

B2B inverter and robotics customers

Purchasers of inverters and robotics may continue to use devices on the Covered List, and their suppliers may continue to import and sell previously approved models. Purchasers’ risks arise from the potential lack of available products in the future. To mitigate that risk, purchasers should:

• Conduct vintage triage. Identify which contracted or yet-to-be-procured robotics devices, inverters, and PCS models that have not yet been imported held FCC equipment authorizations before July 28, 2026. Use FCC IDs for equipment authorized through certification and SDoC files for equipment authorized through Supplier's Declaration of Conformity.
  • Industrial plant, public utility, and transportation vehicle equipment currently in use may not have an FCC ID because they have previously been imported pursuant to an exemption from the certification requirements. The exemption by its terms does not apply to items produced by entities on the Covered List, but nothing in the exemption indicates that it does not apply to items included on the Covered List based on geography. Unless and until the FCC changes that carve-out, the exemption appears to still apply to such items.
• Map BESS and PCS exposure. Determine whether PCS units in contracted BESS configurations contain communication modules and whether they held prior authorization.
• Engage suppliers immediately. Request documentation of FCC authorization status, country of production, domestic component cost analysis, plans for software and firmware updates of previously approved equipment, and plans for Conditional Approval applications.
• Assess project timeline risk. Flag projects with delivery dates for inverter or PCS models that lack confirmed authorization. Evaluate schedule impacts of potential model substitutions.
• Questions to ask suppliers
  • Does this inverter/PCS model hold a valid FCC equipment authorization granted before July 28, 2026? Provide FCC ID or SDoC documentation.
  • Does the equipment contain components enabling remote communication through Wi-Fi, cellular, Bluetooth, or other wireless connections?
  • Where is this equipment manufactured? Does it qualify as a domestic end product under the FAR (48 CFR 25.101(a))? What is the current domestic component cost percentage?
  • For power inverters, if the equipment does not qualify as a domestic end product, is it instead eligible for the Section 45X tax credit?
  • Has the manufacturer applied for or received a Conditional Approval? If so, what is the timeline and scope?
  • Is the manufacturer freezing hardware revisions on authorized models to avoid triggering a new authorization requirement?
  • What steps is the manufacturer taking to ensure that any software or firmware updates fall within the scope that the FCC’s waiver permits?
  • What is the manufacturer's onshoring plan and timeline for achieving domestic end product status?

Contracting and diligence considerations

Contracting practices are already shifting toward more specific representations, authorization covenants, substitution rights, and regulatory-change mechanics. For energy-sector transactions, consider:

• Requiring vendor representations that all delivered robotics devices, inverters, and PCS units hold valid FCC authorization or an active Conditional Approval at delivery
• Including regulatory-change provisions allocating risk for Conditional Approval denial, expiration, or revocation
• Negotiating equipment substitution rights permitting buyers to accept alternative compliant models without project repricing or schedule adjustment claims
• Adding milestone and delivery delay remedies tied to the inability to lawfully import specified equipment
• For project finance, requiring borrower covenants confirming inverter/PCS compliance status, ongoing reporting, and notification obligations if authorization status changes
• In EPC agreements, allocating responsibility for obtaining and maintaining equipment authorizations and Conditional Approvals as a contractor obligation with cure periods and termination triggers
• For offtake and interconnection agreements, addressing whether substitution of inverter models constitutes a material modification requiring counterparty consent

Key takeaways

• Foreign-produced advanced robotic devices and power inverters, including string, central, micro, hybrid, and BESS PCS units with remote connectivity (wired or wireless), are now on the FCC Covered List.
• The restriction does not affect previously authorized models or equipment already installed. Previously authorized models can receive firmware updates through at least January 1, 2029.
• The domestic end product test (U.S. manufacture and 65% domestic content based on the FAR’s cost of components test, rising to 75% in 2029) determines foreign-produced status, not manufacturer nationality. Section 45X, and the related PFE rules, provide a separate path for certain power inverters.
• Companies should treat the FCC action as a procurement, contracting, and supply-chain diligence issue, not merely a regulatory compliance matter.
• Immediate priorities include vintage triage by model, supplier documentation, project timeline assessment, and contract review.
• The Conditional Approval pathway requires application by January 1, 2028, and effectively mandates an onshoring plan with quarterly reporting.

This Legal Development provides general information and does not constitute legal advice. Please contact the authors for guidance specific to your situation.