European solar industry calls for billions and smarter sinergies
According to the Solar Panel Manufacturing Report, billions in financing and cross-border collaborations are a must for establishing a solid solar industry in Europe.
Published on January 2, 2025
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No less than €27 billion would be needed to help Europe's solar industry, according to the Comparison report. The paper, published by Invest-NL, TKI Urban Energy, and Roland Berger, urges for investments, highlighting the current cost disparities in solar panel production, with European manufacturing being more expensive due to higher labor and energy costs compared to China and the United States. Europe must strengthen its solar manufacturing capabilities as it aims to produce at least 40% of necessary technologies domestically.
The comprehensive analysis reveals that Europe's path to solar manufacturing independence requires a strategic blend of public and private investments. To bridge what experts call the 'uncompetitive period,' the initiative needs €27 billion in public funding, which could catalyze multiple private investments. This investment is crucial as European manufacturers face higher production costs due to elevated labor and energy expenses compared to international competitors.
Collaborative European approach
A key finding emphasizes the importance of cross-border cooperation within Europe. Countries including France, Spain, and Germany are joining forces to develop a robust value chain. The Netherlands has positioned itself strategically through initiatives like BatteryNL and SolarNL, demonstrating how regional collaboration can strengthen the entire European solar manufacturing ecosystem.
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Environmental and economic benefits
The report underscores the dual benefit of investing in solar manufacturing: achieving climate goals while building economic resilience. Making solar panels and batteries more affordable is crucial for meeting EU CO₂ reduction targets. The electrification of the energy system could create a positive feedback loop, potentially accelerating the transition to renewable energy while strengthening Europe's industrial base.
Policy and financial framework
Success in this initiative requires a three-pronged approach: smart investments, effective government policies, and European cooperation. The report emphasizes the importance of blended finance - combining public and private funding - to achieve the ambitious goal of producing 40% of energy transition technologies within Europe. This approach aims to create a sustainable and competitive solar industry that can thrive globally.