A new study from SolarPower Europe and Fraunhofer ISE indicates that European solar manufacturing could become competitive with Chinese imports with strategic policy support. The research found that European-made solar modules currently cost approximately 10.3 cents per watt more than Chinese imports, but this translates to only a 14.5% price difference for the final electricity generated. The study, available at https://www.solarpowereurope.org, provides a detailed breakdown of what would be required to bring solar manufacturing back to Europe.
This analysis comes at a critical time as Europe seeks to reduce its dependence on Chinese solar imports and rebuild a domestic industry that has largely shifted to China over the past decade. The relatively small price gap for final electricity generation suggests that with appropriate policy measures, European solar manufacturing could become economically viable. The research emphasizes that whether Europe capitalizes on this opportunity depends heavily on how seriously policymakers approach the challenge of revitalizing domestic solar production.
As European countries work to strengthen their solar manufacturing capabilities, companies across North America and other regions are monitoring these developments closely. The study's findings provide a roadmap for European policymakers seeking to create a more resilient and self-sufficient solar supply chain while maintaining cost competitiveness in the renewable energy market. The research underscores that the 14.5% cost differential for final electricity generation represents a manageable gap that could be bridged through targeted industrial policy, investment in manufacturing innovation, and strategic support for domestic production.
This comes as global demand for solar energy continues to grow, creating significant opportunities for regions that can establish competitive manufacturing capabilities. The study's timing is particularly relevant given Europe's broader energy security concerns and the continent's ambitious renewable energy targets. The findings suggest that rebuilding a domestic solar manufacturing industry is not only strategically important for supply chain resilience but also economically feasible with the right policy framework in place.
The research provides crucial insights for policymakers considering how to balance cost considerations with strategic energy independence goals. The manageable cost differential identified in the study indicates that European consumers might only face minimal price increases for solar-generated electricity while benefiting from the security of a domestic supply chain. This analysis could influence upcoming policy decisions regarding solar energy investments and manufacturing support programs across European Union member states.
