The European solar industry faces a challenging environment. As the continent strives to strengthen its energy independence and meet its ambitious climate goals, local manufacturers are competing with a global oversupply of photovoltaic modules and the aggressive presence of Asian companies.

Luis Contreras , Managing Director of Yingli Green Energy Europe , warns that 2025 will be a year of extreme pressure for the sector and raises a key question: does Europe have the capacity to reindustrialize to produce its own solar panels?

This debate was one of the central axes of the virtual event Storage and Renewable Leadership Forum, organized by Strategic Energy Corp , a company that is part of Future Energy Summit (FES) , a leader in the production of meetings on renewable energy in Latin America, where the main companies in the sector at a global and regional level participate in forums that privilege debate and networking for progress towards an energy transition.

It is worth noting that on June 24, at Colegio Caminos (Auditorio Betancourt, C. de Almagro, 42, Chamberí) in Madrid, the third edition of FES Iberia 2025 will take place ( relive the previous edition ), where Yingli Solar will participate, together with companies such as Iberdrola, Nextracker, Engie, Grenergy, Statkraft, Acciona Energía, Red Eléctrica, EDP Renewables, as well as prominent representatives from the Autonomous Communities and Latin America, where key topics such as solar and wind energy, storage, green hydrogen, distributed generation, PPAs, tenders and new projects will be discussed.

The impact of tariffs and international competition

The solar sector is undergoing a period of transformation. Protectionist measures in key markets like the United States have begun to reshape the supply chain , putting increased pressure on companies operating in Europe.

“We’re already seeing a direct impact on our clients, especially those with significant investments in the U.S. who are now blocked by trade restrictions,” Contreras explains.

The imposition of tariffs on modules imported from China has complicated logistics and forced a redistribution of production.

According to the Yingli executive, this has a double effect: On the one hand, Chinese manufacturers are turning their attention to the European market , increasing competition and putting pressure on prices; on the other, developers in Europe face higher import costs and restrictions on access to key equipment.

“Fortunately, Europe continues to have a strategic need to develop its own solar production capacity, in line with its decarbonization goals,” says Contreras.

However, he warns that price competition with Asia remains the main obstacle to effective reindustrialization .

2025: A year of overcapacity and adjustment in the solar market

One of the most critical points Contreras highlighted is that 2025 will be a year of adjustment for solar module manufacturers.

Currently, “global production capacity is twice the actual market demand,” he determined, which means there will be fierce competition for

According to their forecasts, this oversupply could lead to a drop in prices , affecting manufacturers’ profit margins and creating an environment where only companies with an efficient structure will survive.

For Yingli, this represents both an opportunity and a challenge . The company is committed to strategic alliances with long-term clients in key markets such as Germany, Spain, Poland, Italy, and Romania , seeking to ensure stability in a context of extreme volatility.

Yingli Solar’s European Strategy: Technology, Efficiency, and Partnerships

To face this situation, Yingli Solar has defined three strategic pillars :

1. Technological innovation: The company focuses on developing N-type cells and high-efficiency modules to improve performance and reduce costs. “Our evolutionary roadmap includes technologies such as rear-contact cells and tandem cells to maximize energy production,” says Contreras. 
2. Supply chain optimization: The company works with solid medium- and long-term contracts with key suppliers , especially in logistics and critical materials. “Having stable agreements is essential to mitigate price volatility,” explains the executive. 
3. Strategic relationships with clients: Yingli is committed to consolidating its presence in Europe through long-term partnerships , rather than relying on sporadic sales. “Our goal is to establish relationships where our clients become strategic partners,” Contreras concludes.

Solar panel manufacturing in Europe presents a real opportunity, but it faces significant challenges. As the continent advances its energy transition, global competition, production costs, and market volatility will drive the sector’s growth.

For Yingli Solar, the key lies in technological innovation, supply chain efficiency, and strategic alliances.