ESIA Urges Ten Immediate Measures for the European Solar Industry

The goal of building photovoltaic production capacities of 30GW along the value chain in Europe by 2025 has become a long way off. The European Solar PV Industry Alliance is therefore calling for ten immediate measures from the EU and the member states. The costs for Capex funding are estimated at a total of 18 to 24 billion euros and for Opex funding at 4 to 6 billion euros annually until the target is reached.

Some time ago it looked as if the solar industry in Europe would experience a renaissance. The tide has now turned – at least in Germany. More and more existing module production facilities are being shut down or closed completely. New factories – especially not on theGW scale required – are not being built.

There are ambitious goals, on the one hand from the EU Commission, which wants to achieve a 40% share of solar modules manufactured in Europe in tenders by 2030. On the other hand, not long ago the European Solar PV Industry Alliance (ESIA) formulated the goal of building up production capacities of 30GW along the photovoltaic value chain in Europe by 2025. They have now turned to the public to demand 10 key measures that must be taken immediately to enable the solar industry in Europe to be rebuilt.

Intelligent mix of Capex and Opex funding

“Temporary financial support through European and national instruments” is necessary in order to achieve sufficient speed in building up photovoltaic production capacities. This should be provided through European and national instruments, with particular reference to existing instruments, ESIA continues. “This financial support should consist of a smart mix of Capex and Opex support. We estimate that a total of €18-24 billion in Capex support and an annual amount of €4-6 billion in Opex support will be temporarily required to achieve the ESIA target.”

The first immediate measure required is the implementation of the Temporary Crisis and Transition Framework (TCTF) for state aid in the member states. It should be examined whether the conditions should be adjusted by the EU Commission and whether the requirements can be extended until 2027. Secondly, ESIA advocates privileged support for photovoltaic production projects through the revenue from the European Emissions Trading (ETS) for the period 2024 to 2024. According to ESIA, the member states' revenue from certificate trading amounted to 30 billion euros in 2022, which the national governments for Investments in renewables, energy efficiency or low-carbon technologies are available.

Measure three provides for the provision of one billion euros from the EU Innovation Fund. This should support the development of 20 gigawatts of photovoltaic production - comparable to Capex-Opex support, while at the same time rewarding the best manufacturers in terms of performance and local content. ESIA also wants to enter into a partnership with the European Investment Bank (EIB) to initiate investments worth 15 billion euros in new photovoltaic production by 2027.

ESIA sees the fifth key element as the creation of a European Solar Academy, where around 100,000 people will be trained for the photovoltaics value chain by the end of 2025. The alliance assumes that there will not be enough qualified workers available for the solar industry in the short to medium term. In addition to the EU-controlled academy, public money should flow into training programs, as the ESIA goal could create around 400,000 direct or indirect jobs in the solar industry.

Capitalize on “Made in Europe

ESIA also calls for the brand value of “Made in Europe” to be capitalized. It must be used to attract investors who are willing to pay “a small premium” for solar modules manufactured in Europe. There should also be a “Solar Charter” analogous to the recently adopted “Wind Charter”. In this way, the voluntary obligation of private and public customers to use solar modules from European photovoltaic production would be promoted. This would be helpful for the goal of achieving a total volume of 30GW annually by 2030.

Another adjustment that ESIA believes needs to be turned immediately is the “introduction of price-independent conditions to level the playing field”. To achieve this, sustainability, traceability and the circular economy should be placed at the heart of the EU internal market. It is “the best way to reward the most sustainable actors (regardless of where production takes place) and at the same time strengthen the competitive advantage of European manufacturers,” it says it from ESIA. First of all, high environmental and social standards should be set and implemented. The strict sustainability standards could be achieved through the eco-design requirements.

As a ninth measure, ESIA calls for the “definition and implementation of ambitious sustainability and resilience criteria in public procurement and auctions, such as in the Net-Zero Industry Act (NZIA)”, which should take effect as soon as possible - including before the NZIA comes into force. As a tenth action, ESIA proposes the creation of a digital product ID card, a so-called PV passport, which is intended to increase the transparency and traceability of photovoltaic products on the European market.