Weak local-content rules and delayed implementation risk undermining Europe’s goal of rebuilding a full photovoltaic value chain and strengthening energy security.
Brussels, 4 March 2026 – Today, the European Commission finally presented its proposal for the Industrial Accelerator Act (IAA), which is intended to strengthen Europe’s clean-tech manufacturing base. The European Solar Manufacturing Council (ESMC) is deeply disappointed by the watered-down local content requirement for solar energy that the European Commission has now presented. By limiting the criterion to just two components of solar installations (out of eight) – inverters and cells – it will not be possible to bring the entire photovoltaic (PV) supply chain back to Europe. Furthermore, this provision will likely only enter force in 2030. The three-year delay before the provision becomes applicable will further weaken the entire proposal. It stands in contrast to the Net Zero Industry Act, adopted in 2024, which originally set the objective of bringing back the complete PV value chain by 2030.
“This target is slipping out of sight. I am very disappointed with this watering-down game. We need ‘Made in Europe’ to ensure the continent’s long-term energy security. The current explosion in energy prices, caused by the war in Iran, demonstrates the importance of being independent of other regions,” says Christoph Podewils, Secretary General of ESMC. “If the European solar industry has to wait another three years after the legislation is adopted, many companies will have disappeared in the meantime due to ongoing unfair competition from China.”
The ESMC is calling for the scope of ‘Made in Europe’ to gradually expand to additional market segments and all solar components, as well as to close EU partners such as the UK, Switzerland and Norway. However, it is not in favour of extending it to all countries with a free trade agreement with the EU, as suggested in the regulation.
The ESMC supports the Commission’s proposal to impose restrictions on high-risk suppliers of net-zero technologies. In the solar sector, China undoubtedly poses the greatest security risk, a fact that must be clearly recognised in the upcoming implementation.
“The EU must swiftly designate China as a high-risk supplier of solar PV technologies, paying particular attention to solar PV inverters. China currently dominates the global solar manufacturing value chain to an unprecedented degree, thanks to massive state subsidies, market distortions, and other unfair practices that have forced European manufacturers out of the market. This issue requires urgent attention,” says Podewils.