Multiple European solar associations have published an open letter, calling for the EU to develop industry strategy for the European solar PV sector and opposing the introduction of tariffs and trade barriers.
The signatories of the open letter suggested four ways that can be implemented shortly to address the steep reductions in solar PV module prices in Europe. First, the signatories asked EU’s member states and delegates to call on the European Commission to further adjust the EU State Aid framework, allowing member states to support factories’ operational expenditure.
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Second, the signatories required the EU to swiftly adopt the EU Net Zero Industry Act and set up specific Resilience Auctions systems in consumer markets in the coming months. By doing so, Article 20 of the Net Zero Industry Act should be tailored to allow member states to set up specific auctions of limited but growing volume to reflect the increasing European manufacturing capacities.
The signatories added that it is essential to avoid setting any pre-qualification criteria for solar PV as these could have a detrimental impact on the speed and cost-effectiveness of the energy transition and solar deployment in Europe.
Moreover, the signatories asked the EU’s member states and delegates to call on the European Commission to accompany State Aid frameworks with an EU-wide financial support framework dedicated to the solar PV supply chain. The framework could be linked to the Innovation Fund and existing national support funds, mechanisms or instruments.
Lastly, the signatories called on the EU to leverage as much as possible the Resilience and Recovery Funds (RRF) for supporting solar PV production.
In August, ingot producer Norwegian Crystals filed for bankruptcy, and fellow Norwegian solar ingot manufacturer NorSun announced its decision to temporarily stop production and lay off employees due to the influx of “exceptionally low price” Chinese solar modules in September.
Apart from calling for the EU to develop measures for the solar sector, the signatories also opposed tariffs and market-wide barriers as these measures could endanger the growing PV market and the existing PV ecosystem in Europe.
“It also endangers the political installation goals and would deprive consumers of the economies of scale, which make solar PV one of the most attractive energy generation technologies for both decentralised consumer markets and utility scale supply. We ask member states and delegates to dismiss such proposals,” the signatories said.
