A survey conducted by Crux reveals that U.S. solar photovoltaic companies are not waiting passively for guidance from the U.S. Treasury Department or the Department of Energy regarding matters related to “Foreign Entities of Concern” (FEOC).
This is one of the conclusions drawn from the clean energy financing technology platform’s report on FEOC rules, titled “2025 Market Analysis: Compliance with Foreign Entity of Concern Rules.” The report notes that ahead of the policy implementation in 2026, over 90% of the surveyed companies have initiated ownership reviews, contract audits, and supply chain mapping.
Over 90% of respondents have initiated ownership reviews, contract audits, and supply chain mapping.
Crux explained, “This proactive stance indicates that many companies intend to be well-prepared by 2026, even though regulatory clarity is not yet fully established.”
The survey gathered responses from 50 companies spanning the solar and energy storage industries, including utility-scale and community solar developers, independent power producers, operations and maintenance service providers, battery and inverter manufacturers, and utility companies, among others.
Additionally, Crux’s analysis shows that the majority of companies (80%) are not controlled by specific foreign entities (SFEs) or foreign-influenced entities (FIEs), while 20% have some level of such ownership. However, fewer than 10% of companies reported that SFE/FIE owners have the ability to appoint company executives or board members.
Crux added that companies with such ownership structures have reported various risk mitigation measures, including divesting SFE/FIE equity or collaborating with relevant entities to address governance issues.
Crux further noted, “In some cases, addressing ownership alone is insufficient. Some SFEs/FIEs retain effective control clauses in contracts with project owners eligible for tax credits. In 2025, these contracts have also become a focal point for review among most companies.”
The majority of respondents (54%) stated that no payments for effective control were found to prohibited foreign entities (PFEs) after contract reviews, while another 32% reported actively conducting assessments.
Crux stated that this indicates early audits suggest the industry is moving quickly to understand and mitigate exposure ahead of the compliance deadline by “systematically identifying and addressing potential FEOC linkages.”
Companies making effective control payments to PFEs in certain contracts are actively revising contract terms to exclude such clauses. This includes negotiating for ownership certifications, transparency clauses, and FEOC-compliant payment structures in new and renewed agreements.
Supply Chain Mapping
Furthermore, nearly all respondents have at least initiated supply chain mapping processes, with 70% reporting partial completion of their supply chain mapping. The remaining 30% have successfully fully mapped the supply chains for their products. However, Crux noted that developers and manufacturers still face gaps when tracking the origins of critical materials and components.
A significant portion of respondents (42%) intend to adopt independent or third-party verification audits rather than relying solely on internal validation processes, as most equipment suppliers currently do.
Crux added, “The trend clearly leans toward more verifiable supplier data, but standardized methods or pathways have yet to be adopted.”
Overall, according to Crux’s survey, only 38% of companies reported being “fully prepared” for 2026. Many companies have begun building compliance frameworks even in the absence of comprehensive guidance from the Treasury Department.
Nearly 70% of respondents supported the adoption of standardized supplier certification templates or model forms, while 40% favored the establishment of an industry-wide verification registry.
Crux concluded, “The challenges increasingly center on data quality and regulatory uncertainties regarding the scope of compliance.”
