ESMC outlines recommendations to support Europe’s solar manufacturing

Facebook
Twitter
LinkedIn
Reddit
Email
The NZIA will include “non-price” criteria for state procurements. Image: ESMC

The European Solar Manufacturing Council (ESMC) has published new recommendations for the EU’s Net Zero Industry Act (NZIA) to support solar manufacturers on the continent.

A paper published by the ESMC Working Group praises the NZIA but says there are gaps which need to be filled.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Vincent Delaporte, lead author of the paper, said: “The NZIA is a good first step toward reshoring European solar PV manufacturing, but greater ambition is needed. We expect the new European Commission to raise its aspirations in the upcoming Clean Industrial Deal and new State Aid Regime. This will be a unique opportunity to strengthen the European industrial framework, particularly for solar PV.”

The paper called for an expansion of support for solar manufacturing projects which do not directly benefit from state-sponsored tenders and auctions.

The NZIA will include “non-price” criteria for state procurements designed to provide a market for European products, but the ESMC said that this would only represent a minimum of 6.4GW manufacturing capacity under the NZIA requirements. This is far below the EU’s European Solar Industry Alliance (ESIA) goal of 30GW manufacturing capacity by 2030.

The paper suggested that all renewable energy projects receiving public funding, either from European or state banks, should incorporate “resilience and sustainability criteria” to include domestically produced products.

It also called for a differentiated interest rate for projects using European hardware and lowering or exempting European-made renewable energy products from value added tax (VAT).

The paper said that European manufacturers face challenges for both operational expenditure (OPEX) and capital expenditure (CAPEX) compared with competitive companies in China and the US. It recommended enabling member states to provide specific operational support, like lower electricity prices to strategic industries, to compete against the operational support that Chinese PV manufacturers receive.

It also called for the introduction of a Climate Tech Sovereignty Fund to support greenfield manufacturing startups with CAPEX. It said: “The [European] Innovation fund itself doesn’t really answer the needs of deeptech start-ups, as it requests a strong financial credibility, often hard to achieve at early stage.”

The head of the ESMC, Johan Lindahl, spoke with PV Tech Premium earlier this year about the importance of OPEX support for Europe’s PV manufacturers.

CBAM and raw materials

Beyond direct financial measures, the paper also called on legislators to “create a level playing field in the EU market” by extending the Carbon Border Adjustment Mechanism (CBAM) to include solar modules.

The CBAM imposes tariffs on carbon-intensive imports to the EU based on their carbon footprint. The ESMC said that, under current law: “European solar manufacturers will be hit by CBAM if they import components to assemble solar modules, such as aluminum or glass, whereas Chinese companies selling whole modules from China will pay no carbon border fee at all.”

It also said that the import tax on raw materials for solar manufacturing, like solar-grade glass, should be aligned with taxes on imported solar modules. Manufacturers currently pay an import tax on solar glass or other components shipped to Europe, but completed modules containing those same materials are not taxed in the same way.

The full paper can be read on the ESMC’s website.

7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
2 December 2025
Málaga, Spain
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

September 5, 2025
Scientists from Germany and Saudi Arabia have discovered that perovskite thin-film cells are compatible with current industry standard silicon solar cells, which they claim is a “crucial step toward the industrialisation of perovskite silicon tandem solar cells”.
September 5, 2025
During a week of major US clean energy developments, ContourGlobal, PSE, Arevon, and Ameren Missouri advanced solar projects across four states in the US.
September 5, 2025
Newly formed firm Solaris Assets has acquired the business operations and assets of Texas-based residential solar installer Sunnova.
September 5, 2025
Research firm Rystad Energy has found that Queensland’s utility-scale solar PV power plants have dominated the best-performing assets, in terms of AC capacity factor, rankings for August 2025.
September 4, 2025
India’s Goods and Services Tax (GST) Council, the joint forum of the Centre and States, has reduced the GST rate on renewable energy components from 12% to 5%. 
September 4, 2025
Fraunhofer ISE has completed testing work of grid-forming inverters currently available in the energy industry.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines