PV systems and distributed energy assets require stronger cybersecurity and controllability, but measures to protect critical infrastructure should be based on careful, expert assessment rather than rushed policy decisions.
It has long been clear that photovoltaic systems and other distributed energy producers should not be monitored or controlled openly via the internet without appropriate security measures. At the same time, these assets – like large consumers – are increasingly required to be controllable and, where necessary, disconnectable within the grid infrastructure to ensure system stability. This is broadly accepted. However, decisions on cybersecurity measures and the protection of critical infrastructure should not be taken hastily, but rather based on careful consideration and objective expert assessment.
First, however, it is worth looking at price developments for components in photovoltaic systems that are not yet the focus of data protection advocates or cybercriminals, at least as long as no switchable module optimizers are involved via an unsecured gateway.
Prices for solar modules continue to rise by a few percentage points each month across most segments, including again in May. High-performance modules, in particular, are affected, as production capacity appears to be limited. Expectations for efficiency gains from new cell formats and technologies may have been overly optimistic. Customers are increasingly expecting outputs approaching 500 W in the rooftop segment, but supply remains constrained. As a result, supply and demand continue to drive pricing, with high-efficiency modules seeing further price increases. Prices have now exceeded the level forecast in January, albeit about a month later than expected.
The question now is how long this trend can continue. Demand in Germany is already declining compared to the previous month and is currently around 12% lower than in the same period last year. Germany has long ceased to be a decisive factor in global solar pricing. Whether the current trend continues into the summer or reverses will depend largely on developments in international crisis regions and the associated energy price trajectory. If tensions ease, production and transport costs could also decline.
A factor that could reverse the upward price trend in a photovoltaic market still largely dominated by Chinese products is the exclusion of these products from large-scale European projects. Such a measure would likely have a downward effect on global prices. However, at the local level, the lack of affordable alternatives would likely lead to significant increases in hardware costs. This alone raises serious concerns and calls for the development of alternative supply concepts. Strictly speaking, this is not a blanket ban; rather, access to EU funding would be restricted for projects using inverters from certain suppliers.
This raises several questions, most notably whether such exclusion is a sensible precaution or an overreaction driven by risk aversion.
Chinese manufacturers have reacted negatively, with government representatives warning of possible countermeasures, including the prospect of trade conflict. Critics argue that there is no evidence of any concrete risk associated with Chinese hardware and software. While these risks remain largely hypothetical, the increasing decentralization of energy supply across millions of generation assets in Europe means that potential vulnerabilities cannot be dismissed outright. The risk of large-scale disruption, whether internal or external, must be considered, and appropriate defence strategies developed.
In this context, the EU’s NIS-2 Directive is also relevant. It sets out cybersecurity requirements for companies and institutions in critical sectors, including obligations for risk management, security standards, and incident reporting. In Germany, more than 1,000 operators of critical infrastructure (KRITIS) are already registered. With the implementation of NIS-2, this number is expected to rise to over 30,000 entities, extending regulatory requirements across significant parts of the German economy, not only in the renewable energy sector.
German Association of Energy and Water Industries (BDEW) is therefore calling for a substantial strengthening of the resilience and protection of critical infrastructure. However, it is questionable whether a blanket exclusion of non-European hardware is truly an appropriate means of achieving this goal. The EU’s approach appears instead to reflect clientelist policy-making. Under pressure from established energy utilities, it risks reinforcing existing structures and limiting the further expansion of cost-efficient, decentralised solutions. Moreover, such a measure would, at best, offer only limited protection to the domestic photovoltaic industry, which itself remains dependent on Chinese components.
Such far-reaching measures risk appearing reactionary, driven by an unwillingness to engage with the full complexity of the issue, and are therefore likely to be counterproductive. After all, components capable of enabling malicious external communication could just as easily be embedded in European inverters. Likewise, German energy management software is not inherently more secure against cyberattacks than its Chinese equivalents.
What is ultimately required is the development and consistent application of universally valid software standards for relevant systems, along with corresponding documentation requirements and additional certification protocols for controllable hardware components. Such standards already exist to a considerable extent and could be applied comprehensively without excluding products based on their geographical origin.
Prices in May 2025, including changes from the previous month (as of May 15).
Author: Martin Schachinger
About the author: Martin Schachinger has studied electrical engineering and has been active in the field of photovoltaics and renewable energy for almost 30 years. In 2004, he set up the pvXchange.com online trading platform. The company stocks standard components for new installations and solar modules and inverters that are no longer being produced.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
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