Germany’s solar trade association, the Bundesverband Solarwirtschaft (BSW), has announced a proposal to restore and strengthen the entire value chain of the European solar production industry.
BSW’s proposal Solar Package 1 encourages solar system operators in Germany to purchase modules from European manufacturers through a bonus scheme, therefore creating a market for the European solar industry with a competitive gigawatt scale.
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Moreover, Solar Package 1 resonates with the objectives of the European Net Zero Industry Act, which is expected to be adopted by the European Parliament in March 2024. The European Solar Manufacturing Council (ESMC) said the proposal will secure the European PV industry, which is currently under threat of relocation and closure in the fiercely competitive international landscape.
According to a statement published by ESMC, the proposal will also bring multiple benefits to the industry and economy, including about 10,000 jobs, a reduction in the trade deficit for solar products, a huge amount of tax payments, and export opportunities.
However, the signatories of the statement called for the German Bundestag to accelerate the approval of Solar Package 1 by mid-February.
“It is essential to integrate an effective resilience component within the Renewable Energy Sources Act (EEG), ensuring its widespread application across the German solar market — from small household installations to large-scale solar park projects,” ESMC said.
Prior to this proposal, ESMC reiterated its calls for emergency measures to support the continent’s PV manufacturing industry amid concerns about the collapse of the sector.
Building on its initial pronouncement in September 2023 that called for protective measures against “unsustainably low-priced PV modules” from Chinese producers, the ESMC’s most recent press release doubles down:
“There is only one solution ― we need robust emergency measures that are powerful and effective, bridging the period until legislative incentives, such as the Net-Zero Industry Act, take effect and can at least partly level the playing field.”
The statement came on the same day that European solar manufacturing stalwart Meyer Burger announced plans to abandon its module assembly plant in Germany because of the lack of support afforded to manufacturers in Europe.