“EU Goes First, and Now It’s a Race: What the Cyber Resilience Act Means for DER and SunSpec Alliance”
On October 10, 2024, the European Union formally adopted the Cyber Resilience Act (CRA), which aims to transform cybersecurity standards for digital products across Europe. By integrating security-by-design principles and mandating vulnerability management, the CRA sets a new regulatory baseline for connected devices, from consumer gadgets to industrial IoT systems. This legislation raises the stakes for manufacturers globally by introducing mandatory compliance measures that cover every stage of a product’s lifecycle—from development to ongoing maintenance.
Key CRA Provisions:
- Security by Design: Manufacturers must build security features into their products from the start, rather than treating them as an afterthought.¹
- Lifecycle Updates: Continuous monitoring is required, with manufacturers obligated to release patches promptly when vulnerabilities are discovered.²
- Consumer Transparency: Clear and accessible information about product security must be disclosed to empower informed purchasing decisions.³
- 24-Hour Vulnerability Reporting: Any actively exploited vulnerability must be reported to European authorities within 24 hours.⁴
- Strict Penalties: Non-compliance may result in significant fines—up to €15 million or 2.5% of global turnover, whichever is higher.¹
The CRA aims to harmonize cybersecurity requirements across the EU, eliminating conflicting regulations across member states. Products meeting the CRA standards will display a “CE” marking, signaling compliance and improving consumer trust.²
Implications for SunSpec Alliance and the US DER Industry
The CRA introduces a global shift in cybersecurity practices, and its impact will extend beyond Europe. For the DER (Distributed Energy Resource) sector and SunSpec Alliance, the legislation presents both challenges and opportunities:
- Regulatory Pressure on the US: The EU’s leadership is likely to push US regulators to adopt similar frameworks, especially in sectors like energy, which are vulnerable to cyberattacks. The energy grid, increasingly reliant on connected technologies, faces risks that demand proactive cybersecurity measures.³
Impact on Compliance and Market Access: DER manufacturers—especially those dealing with smart inverters, energy storage, and IoT devices—must align with CRA
- standards to maintain access to the EU market. Failure to do so will block market entry, creating compliance urgency for many SunSpec Alliance members.⁴
- Opportunities for Innovation and Competitive Edge: Embracing the CRA’s security-by-design principles early can offer companies a first-mover advantage. Products designed to meet the CRA’s requirements will appeal to global markets, offering enhanced consumer trust and greater brand value.² SunSpec Alliance can help members lead this transition, establishing security as a key differentiator in both domestic and international markets.⁵
- Risk of Fragmented Regulations: If the US develops disjointed cybersecurity rules, companies will face higher compliance costs and operational challenges across different jurisdictions. This highlights the importance of international harmonization of cybersecurity frameworks to reduce complexity. SunSpec Alliance is well-positioned to advocate for alignment between US and EU regulatory standards, promoting smoother global operations for its members.³
Conclusion: The Race Has Begun
The CRA will become enforceable within 36 months, giving companies a limited window to align their operations and products with the new standards. For the DER industry, this is a critical moment: proactive cybersecurity strategies will be essential to stay ahead of regulatory demands and evolving threats. SunSpec Alliance and its members should seize this opportunity to lead, positioning themselves as champions of cybersecurity innovation. The race is on—how quickly will the US catch up?
Citations:
¹ InfoRiskToday. “European Council Adopts Cyber Resilience Act.” Last modified October 10, 2024. https://www.inforisktoday.com.
² Goodwin Law. “EU Adopts Cyber Resilience Act for Connected Devices.” Accessed October 22, 2024. https://www.goodwinlaw.com.
³ Secora Consulting. “EU’s Cyber Resilience Act: Strengthening Security for Digital Products.” Published October 14, 2024. https://secoraconsulting.com.
⁴ Ibid.
⁵ Goodwin Law, “EU Adopts Cyber Resilience Act for Connected Devices.”
