A Strong Call to Strengthen Solar Manufacturing in Europe

The European Solar Manufacturing Council (ESMC) is pushing for a significant shift in EU policy to bolster the solar PV manufacturing sector. Currently, the industry faces existential challenges due to the influx of low-cost PV modules from China, threatening the sustainability of European solar manufacturing.

"Our strategic proposals are designed to swiftly relocate solar manufacturing back to Europe within the year. This move will reduce emissions, create green jobs, and lessen our dependence on China. It’s a clear opportunity the EU cannot ignore. We urge Ursula von der Leyen and her team to take decisive action," said Žygimantas Vaičiūnas, ESMC’s Policy Director.

A Clear Plan for European Solar PV Manufacturing

The ESMC is urging EU leaders to prioritize European solar PV manufacturing as part of the European Commission’s agenda. They emphasize the need to clarify existing quantitative targets for EU PV production, driving investment and relocating manufacturing capacities within EU borders. With targeted measures that build on existing EU industry initiatives, the ESMC believes impactful change can happen quickly without major legal overhauls.

Key recommendations from ESMC include:

1. Capacitate European Consumption: Create demand for locally produced PV products.
2. Trade Protection Actions: Implement trade measures similar to those used for battery electric vehicles, protecting the EU PV manufacturing sector from low-cost imports without slowing down the deployment of PV across Europe.
3. Lower VAT for Green PV Modules: Decrease VAT for eco-friendly PV products throughout the value chain.
4. Ensure Competitive Industrial Electricity Prices: Keep electricity costs low across the EU PV value chain to maintain competitiveness.
5. Energy Security for Inverters: Implement energy security measures for inverters in EU markets.

Bridging Current Frameworks for Lasting Impact

While the Net-Zero Industry Act (NZIA) provides a foundation for strengthening EU solar PV manufacturing, the ESMC highlights the urgent need for additional policy measures to support the sector. These new initiatives would bridge the goals of the NZIA and the European Solar Charter with tangible strategies that foster competitive and sustainable PV manufacturing in Europe.

Aligning with a Clean Industrial Deal

The European PV manufacturing sector presents a strong case for inclusion in a proposed Clean Industrial Deal. This would align with the goals set forth in the Commission President’s Political Guidelines for 2024–2029, fostering competitive industries, high-quality jobs, and sustainable growth across Europe.

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