Europe must make solar PV a priority sector in its new Diversify EU initiative and take urgent action against unfair competition from heavily subsidised Chinese imports. This is the central message from the ESMC feedback to the European Commission.
China dominates almost the entire solar PV value chain and accounted for more than 95% of the EU’s solar panel imports by value in 2024. This extreme dependence threatens Europe’s energy security and undermines its ambition to rebuild a competitive European solar manufacturing industry.
“Europe cannot diversify its solar supply chains as long as heavily subsidised Chinese imports are allowed to undermine both European manufacturers and alternative suppliers. Fair competition is not an optional extra – it is a prerequisite for diversification,” says Christoph Podewils, Secretary General of ESMC.
Chinese solar panels sold below sustainable production costs
ESMC highlights the scale of unfair competition. According to recent price assessments, Chinese TOPCon solar modules are sold in Europe for 10.9 euro cents/Wp, while a Fraunhofer ISE/SolarPower Europe study estimates that Chinese manufacturers need at least 15.9 euro cents/Wp to cover production, shipping and a reasonable profit. This means Chinese modules are sold in Europe 31% below their estimated sustainable price, equivalent to a dumping margin of 46%. The price gap has persisted since August 2024.
No European manufacturer can compete against prices that do not even cover Chinese production costs. ESMC therefore calls for immediate use of existing EU trade defence instruments, alongside the development of new tools that allow the Commission to intervene before European manufacturing capacity is irreversibly lost.
Europe has the capacity and investment plans
Europe already has companies, technologies and investment plans across the entire solar value chain – from quartz, polysilicon, ingots and wafers to cells, modules, inverters and production equipment. A European PV value chain producing 30 GW annually could support 80,000 jobs and add €4 billion a year to EU GDP. However, these investments require a predictable market, fair competition and adequate financial support.
Eight recommendations for Diversify EU
In the submission, ESMC puts forward eight recommendations, including:
- Faster and stronger use of existing and new trade defence instruments.
- Swift implementation of the Industrial Accelerator Act, with binding Made in Europe requirements covering the full PV value chain.
- Stronger enforcement of NZIA resilience criteria to prevent circumvention.
- Coordinated EU funding and measures creating predictable demand for European manufacturing.
- Binding diversification targets and monitoring of upstream dependencies.
- Stronger requirements on supplier trustworthiness and operational control of critical energy technologies.
- A major European campaign promoting Made in Europe products.
“Europe has the technology, the companies and the investment plans. What we need now is a European policy framework that turns these plans into factories, jobs and greater energy security,” says Christoph Podewils.
ESMC urges the Commission to ensure that Diversify EU combines import diversification with effective market protection and the rebuilding of Europe’s solar manufacturing value chain.