FEOC (Foreign Entity of Concern)

A Foreign Entity of Concern is a government, organization, or company that the United States has identified as posing national security or geopolitical risk. Under the Inflation Reduction Act, solar projects cannot claim certain tax credits or bonus incentives if key components in the system are manufactured by an FEOC.The U.S. Department of Energy and Department of Treasury evaluate whether an entity meets FEOC criteria based on ownership, control, and ties to foreign governments. Countries commonly associated with FEOC status include China, Russia, Iran, and North Korea.For commercial solar customers, FEOC rules affect the eligibility of panels, inverters, batteries, and other equipment for domestic content bonuses and certain federal incentives. Selecting equipment from approved manufacturers helps ensure full access to all tax credits available for solar and storage projects.