The European photovoltaic sector is facing a critical situation of intense competition, with dumping and Chinese oversupply of solar panels, which is why it is seeking to shield its solar industry. In this context, Christoph Podewils, Secretary General of the European Solar Manufacturing Council (ESMC), warns that the industry could be competitive if there were fair conditions in the global market, but today it faces an uneven playing field, dominated by downward price pressure from Asia.
In an interview with Strategic Energy Europe, the executive urges the European Commission to speed up the implementation of the Clean Industrial Deal to reactivate the internal market and recover the value chain.
“The European photovoltaic industry would be competitive on a level playing field. Currently, that possibility doesn’t exist: Chinese companies are selling modules at prices as low as €0.06/W in Europe, but €0.10/W in China. This meets the criteria for dumping,” states Podewils.
The key tool to balance the market will be the Clean Industrial Deal, which introduces local content quotas and aims to stimulate domestic manufacturing. “The European Commission should speed up the implementation of the Clean Industrial Deal. This will reactivate the market for European companies. To help them scale, we need support, such as easy access to project financing and simpler permitting processes,” he says.
Falling prices and challenges to opening new factories
Low solar panel prices are making it difficult to open new manufacturing plants in Europe.
“Everyone is selling below cost. This race to the bottom helps no one—not the Chinese companies, which are also suffering and increasingly compromising on quality, nor the European customers, who might one day realize that the cheap Chinese modules no longer work, while their manufacturers may have disappeared,” the expert explains.
However, according to ESMC, this could be reversed if a market is created for quality products backed by sustainability and resilience criteria.
Still, he notes: “New production lines can be opened when there is a market again for quality products. With the need for resilience and sustainability auctions under the NZIA, and public procurement of resilient and sustainable solar products for many public buildings by 2030, there could be a huge market for European products.”
He also highlights that it is now up to Member States to translate the obligations under the NZIA into national legislation. “I expect this to start happening from summer onwards,” he anticipates.
Alarm over U.S. tariffs and spillover effects in Europe
The recent imposition by Donald Trump of universal tariffs of 10% and specific rates of 20% on the European Union, effective April 5, marks a direct blow to global foreign trade.
Tariffs on Chinese solar products have sparked alarm within the European sector. As SolarPower Europe warned in an interview with Strategic Energy Europe, this could lead to an oversupply of surplus products in the European market as Asian exports are redirected.
The ESMC shares this concern. “Everyone is selling below cost. This race to the bottom helps no one,” warns Podewils.
“If the U.S. market closes, these products could be redirected to other markets, including Europe,” said Ludwig from SolarPower Europe. This could lead to a flood of ultra-low-cost solar panels in the EU, which would further harm local production. However, SolarPower Europe believes that the growing domestic and international demand in China could absorb some of these products, mitigating the impact on Europe.
Regarding the EU’s response, Ludwig states that the bloc should focus on its own industrial strategy and expand its solar manufacturing capacity.
The role of NZIA and the solar value chain
Another central piece of the new regulatory framework is the Net Zero Industry Act (NZIA), which includes a key instrument: the implementation act for public auctions. ESMC views these initiatives as a positive start, though insufficient on their own.
“The NZIA is a starting point. The implementation act is heading in the right direction and will address some components of the value chain. Companies are already preparing for when it comes into force,” says Podewils.
“The implementation act on public procurement under the NZIA is next and could generate a huge market, as by 2030 nearly all public buildings must be equipped with solar energy, and a large share of it must not originate from China,” he adds.
The NZIA’s potential impact is significant: by 2030, all public buildings must be equipped with solar energy, and a substantial portion must be non-Chinese in origin. “We’re talking about a potential market in the two-digit GW range,” estimates the executive.
However, to ensure that this demand drives the European industry, “the European Union should establish ‘Made in Europe’ requirements, as announced in the Clean Industrial Deal,” he emphasizes.
The Competitiveness Compass and the Path Toward Solar Autonomy
Within this transformation, the Net Zero Deal and the Competitiveness Compass are positioned as strategies to strengthen Europe’s industrial ecosystem.
“The Clean Industrial Deal could be a turning point. For the first time, it proposes a 40% ‘Made in Europe’ quota for renewable energy. Of course, this will benefit the European industry,” says Podewils.
Regarding the Competitiveness Compass, he notes that it “takes a broader approach, focusing on innovation, better policy alignment, and removing barriers,” which could significantly strengthen the industry if implemented properly.
“Europe is the largest single market economy in the world. We just need to unlock its potential,” he concludes.
