EU policymakers push to increase ‘Made in Europe’ requirement for solar under IAA

It also proposes expanding the definition of strategic materials to include plastic for construction, alongside steel, aluminium and cement.

For net-zero technologies, the report calls for increased EU content requirements covering products including solar panels, wind turbines, heat pumps and nuclear power plants, with the aim of strengthening European manufacturing capacity and reducing external dependencies.

The proposals also seek to introduce stricter definitions and component-level requirements to prevent companies from circumventing EU content rules through limited local assembly or other arrangements.

Grudler said the approach marks a shift away from what Renew Europe describes as “unconditional openness” towards greater reciprocity in EU market access. Under the proposed framework, market access would be linked more closely to whether trading partners provide comparable conditions for European companies.

Christophe Grudler, co-rapporteur on behalf of the Committee on Industry, Research and Energy (ITRE), said, “It is time to put an end to a wait-and-see approach and a certain naivety. Facing fierce global competition, we must build and consolidate the value chains of our strategic sectors in Europe: from steel and aluminium to the automotive industry and clean technologies. European taxpayers’ money must be used as a lever to achieve this: to support those who produce, innovate and create jobs here, within the Union.”

“But greater ambition must not mean greater complexity. We are proposing simple, clear and applicable rules, without unnecessary administrative burdens for businesses and local authorities. This is the ambition we are setting out in this draft report. The work begins now: I will fight to ensure that the Accelerator rises to the challenge of the current industrial emergency.”

The draft report is part of the Parliament’s work on the IAA, which is intended to strengthen Europe’s industrial base amid growing geopolitical and supply-chain risks.

The IAA, introduced by the European Commission in March 2026, aims to strengthen EU manufacturing and reduce reliance on non-EU suppliers in strategic sectors including solar and batteries. It introduces “Made in EU” criteria for public procurement and support, initially targeting solar cells and inverters.

The Act seeks to address Europe’s exposure to global competition and supply-chain dependencies, particularly China’s dominance of solar and energy-storage manufacturing. Under the proposal, EU-made requirements would apply to publicly supported solar projects three years after the Act enters into force.

In April 2026, the European Solar Manufacturing Council (ESMC) called for the IAA to be strengthened, arguing that its proposed “Made in Europe” framework was too narrow and slow to rebuild the EU’s PV manufacturing base.

It urged the criteria to cover at least three PV components and 50% of publicly tendered capacity, alongside tighter rules on Chinese suppliers, foreign investment and local sourcing, and called for the enhanced solar provisions to be implemented by the first half of 2027.

The timing has become increasingly critical as prolonged global overcapacity and pricing pressure, particularly from Chinese manufacturers, continue to weigh on Europe’s PV manufacturing sector. The Commission has also moved to restrict EU funding for energy projects using Chinese-made inverters, reflecting growing concerns over supply-chain dependence and the strategic role of clean-energy manufacturing.