What the New Grid Equipment Executive Order Means for Commercial Solar and Storage

On August 26, the White House issued an executive order that allows the federal government to block certain foreign-made equipment, including inverters and battery storage systems, from the high-voltage power grid. For businesses planning solar or storage projects, the order doesn't stop on-site projects, but it does put new attention on where energy equipment comes from.

The Executive Order at a Glance

The order declares a national emergency over foreign-produced equipment used in the country's bulk-power system, the high-voltage backbone of the grid. According to the text of the order:

• What it covers: The bulk-power system, defined in the order as transmission lines rated at 69 kV or more. Local distribution lines are excluded.
• What equipment is named: Substation transformers, circuit breakers, control systems, grid-connected inverters, and battery energy storage systems, among other items
• What can be blocked: Purchases started after August 26 that the Energy Department determines are tied to a country or company of concern and pose a security risk
• What comes next: The Energy Department has until December 24, 2026, to publish the rules, and may also publish a list of pre-approved equipment and vendors

Why the Order Matters

The order is aimed at two risks, according to its text. The first is security: foreign-made grid equipment could include hidden remote-access features. The second is supply: heavy reliance on foreign sources means a trade disruption could cut off critical equipment.

It also ties the issue to rising electricity demand, citing growth in advanced manufacturing, data centers, and artificial intelligence. That's the same demand growth that has been straining the grid and pushing up electricity costs for commercial operators.

Two Different Scales: The Grid vs. Your Facility

It's easy to read "inverters and batteries" and assume every solar project is affected, but the order draws a clear line.

High-voltage grid equipment is in scope. Utility-scale projects and equipment connected at transmission voltage are the focus, and the final rules will spell out which suppliers face scrutiny.

Most on-site commercial systems are likely outside it. Solar and storage for farms, multifamily properties, and manufacturers typically connect to local distribution lines, which the order explicitly excludes.

What This Means for Your Business

If you're planning an on-site solar or storage project, there's no reason to wait. The order doesn't block local projects, and the full rules won't arrive until late December.

The practical step is to add one question to your planning: where are the major components made, and by whom? The order directs the Energy Department to recommend federal purchasing rules that favor U.S.-manufactured energy equipment, a sign that sourcing will matter more over time. Knowing the origin of your inverters and batteries now keeps your options open later.

At the same time, on-site storage keeps getting more capable. According to Wood Mackenzie data reported by Solar Builder, the U.S. installed a record 18.9 GWh of battery storage in the second quarter of 2026, and the average system now runs 3.5 hours, up from 2.8. Longer-lasting batteries can cover more of the peak hours when electricity costs the most.

Where to Start

A feasibility analysis is the fastest way to see what an on-site system could look like for your facility, with equipment choices that hold up as the rules take shape. It typically evaluates:

• Your facility's energy usage and potential for solar or storage
• Estimated system size and project cost
• Equipment options and sourcing
• Available incentives, financing paths, and projected payback

Interested in exploring renewable energy for your facility? Contact us to request a free feasibility analysis and see what a solar and storage project could look like for your business.

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Sources:

• Declaring a National Emergency to Secure the United States Bulk-Power System — The White House
• U.S. energy storage market posts record number in Q2 2026, report says — Solar Builder

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