Enphase Energy stock surges on potential inverter import ban

Investing.com -- Enphase Energy (NASDAQ: ENPH) shares surged 17.5% on Monday, while SolarEdge Technologies (NASDAQ: SEDG) rose 11% and Sunrun (NASDAQ: RUN) gained 7% following a Reuters report that the Trump administration is drafting a ban on imports of foreign inverters over national security concerns.

The rule being drafted by the U.S. Federal Communications Commission would apply to new foreign models of inverters, which connect solar projects and batteries to the grid, and could be published as early as this year, according to five sources cited by Reuters. The administration has raised concerns that China could use these devices to disrupt power supplies.

The Trump administration was prompted to revive the effort in part by a decision by the European Commission in May to ban Chinese-made inverters from publicly funded energy projects, the sources said. However, they cautioned the U.S. proposal could still be modified or shelved altogether.

The FCC and the White House declined to comment on the draft measure. The Chinese Embassy in Washington said it "firmly opposes the overstretching of the concept of national security and its unjustified suppression of Chinese companies."

China is the world's largest maker of inverters, led by Sungrow Power Supply and Huawei, and has been growing its share in the Western inverter market by driving down prices.

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