SolarPower Europe Calls for Phased ‘Made in EU’ Rules Under Industrial Accelerator Act to Strengthen Solar Manufacturing

SolarPower Europe has released a detailed set of recommendations on the European Union’s proposed Industrial Accelerator Act (IAA), urging policymakers to adopt a phased implementation approach that strengthens domestic solar manufacturing while safeguarding the rapid deployment of renewable energy across Europe.

The recommendations come as the European Union seeks to enhance industrial competitiveness, improve supply chain resilience, and reduce strategic dependencies in critical clean energy sectors. The proposed Industrial Accelerator Act is expected to become a key pillar of Europe’s industrial strategy, complementing existing initiatives such as the Net-Zero Industry Act (NZIA).

According to SolarPower Europe, Europe's solar sector has entered a critical growth phase. The continent reached approximately 406 GW of cumulative installed solar capacity by the end of 2025, with forecasts suggesting this could rise to 718 GW by 2030. However, despite strong deployment growth, much of the solar manufacturing value chain remains concentrated outside Europe, raising concerns about long-term supply security and industrial competitiveness.

One of the association’s key recommendations is maintaining a strict definition of “Made in EU.” SolarPower Europe argues that eligibility criteria should prioritize products genuinely manufactured within the European Union rather than broadly extending qualification through trade arrangements that could dilute the objective of rebuilding domestic manufacturing capacity.

The organization also recommends a phased implementation framework for local-content requirements. Under the proposal, policymakers would initially focus on components where European production capacity already exists, particularly solar inverters, before gradually extending requirements to strategic upstream products such as solar cells and other key manufacturing segments. According to the association, this approach would allow the industry sufficient time to expand manufacturing capacity while avoiding supply shortages and project delays.

In addition, SolarPower Europe proposes that European-origin requirements be incorporated into renewable energy auctions as an award criterion rather than a mandatory pre-qualification requirement. The group believes this structure would continue to encourage competition while creating incentives for developers to source equipment from European manufacturers.

The recommendations also address foreign direct investment (FDI), calling for a balanced framework that supports industrial development without discouraging capital inflows. SolarPower Europe argues that Europe’s clean energy manufacturing expansion will require substantial investment and that policymakers should avoid creating barriers that could limit access to financing.

Earlier this year, Dries Acke, Deputy CEO of SolarPower Europe, described the Industrial Accelerator Act as a “watershed moment” for Europe’s clean energy industry. According to Acke, the legislation could create the first large-scale mechanism enabling European governments to prioritize locally manufactured solar and battery storage technologies within auctions, procurement programs, and public support schemes. At the same time, he stressed that industrial policy must be carefully designed to avoid slowing renewable energy deployment or increasing costs for consumers.

The debate surrounding the Industrial Accelerator Act reflects a broader challenge facing Europe’s energy transition. Policymakers are increasingly tasked with balancing four strategic objectives simultaneously: accelerating renewable deployment, strengthening domestic manufacturing, enhancing energy security, and maintaining affordability. Industry participants argue that achieving all four goals will require carefully calibrated policy measures rather than overly restrictive local-content rules.

As negotiations on the legislation continue, the outcome is expected to play a significant role in determining the future competitiveness of Europe’s solar manufacturing sector and its ability to support long-term energy transition objectives.