Make European solar manufacturing a priority for the EU

Ahead of the formation of the European Commission the European Solar Manufacturing Council (ESMC) reaches out to the President of the European Commission Ursula von der Leyen to position the EU PV manufacturing among the priorities for the new mandate of the European Commission. The ESMC appeal consist of five concrete policy actions with the potential to make an immediate difference for the European solar PV manufacturing, an industry presently suffering existential challenges due to oversupply of unsustainably priced PV modules from China.

“With our proposals, the EU can begin bringing solar manufacturing back to Europe as early as this year. Increased domestic solar production will reduce our emissions, create thousands of new green jobs, and lessen our dependence on China. It’s a clear win-win, that the EU cannot miss. The ball is now in Ursula von der Leyen’s court and her new legislation”, says Žygimantas Vaičiūnas, Policy Director at ESMC.

ESMC is requesting to position the European solar PV manufacturing industry as one of the priorities during the institutional formation procedures of the European Commission. The already existing quantitative targets for the EU PV manufacturing should be defined to deliver appropriate investments in reshoring PV manufacturing capacities in the EU. The measures proposed by ESMC — in addition to on-going initiatives to support the EU industries — will not require extensive additional legal provisions or lengthy implementation procedures, therefore, expecting fast and at the same time long-term effect:

1. European buy-out facility to ensure certain up-take for European-made PV products.
2. Appropriate trade defense measures for the EU PV manufacturing, similar to the already taken measures for battery electric vehicles vis-à-vis China, in a way not to jeopardize the PV deployment in the EU market.
3. VAT reduction for resilient and sustainable PV modules and products along the value chain in residential sector.
4. Competitive industrial electricity prices across the EU PV value chain.
5. Energy security measures for the inverters deployed in the EU market.

Although the Net-Zero Industry Act (NZIA) can deliver positive impact to European solar PV manufacturing capacities, ESMC stresses that there is an urgent necessity for the EU to develop additional policy measures to address the challenges of EU PV manufacturing.

ESMC is requesting concrete measures and actions to link the objectives of already created frameworks, like NZIA and the European Solar Charter, with the real competitive, resilient and sustainable PV manufacturing capacities in the EU.

The European PV manufacturing industry is the perfect candidate to be the part of a new Clean Industrial Deal for competitive industries and quality jobs — the vision of the President of the Commission presented in the Political Guidelines for the next European Commission in 2024–2029.