Solar energy, in particular photovoltaics (PV), is currently the fastest growing renewable energy source in the EU. Last year, 56 GW of solar PV were installed in the EU, two thirds of it on rooftops, empowering consumers and protecting them from high electricity prices and reducing land use. The in Contact online >>
Solar energy, in particular photovoltaics (PV), is currently the fastest growing renewable energy source in the EU. Last year, 56 GW of solar PV were installed in the EU, two thirds of it on rooftops, empowering consumers and protecting them from high electricity prices and reducing land use. The installations in 2022 and 2023 saved the equivalent of 15 billion cubic meters of Russian gas imports in total, mitigating the risk of disruption of gas supplies to the Union. In addition, the sector provides around 650 000 jobs, 90% of these on the deployment side, and is projected to increase until around 1 000 000 by 2030.
Achieving the 2030 EU target of at least 42.5% renewable energy by 2030, with an ambition to reach 45%, will require further acceleration in the deployment of renewable energy, including solar energy.
The bulk of the demand for solar modules in Europe is covered by imports from a single supplier, China, a concentration that creates short-term risks for the resilience of the value chain and long-term risks for price stability for solar panels due to dependencies on suppliers outside of Europe. Access to affordable solar modules from a diversity of sources as well as a resilient, sustainable and competitive European solar value chain are therefore necessary to achieve a deployment rate in line with the above targets while enhancing security of supply and mitigating the risk of supply chain disruptions.
However, the European solar module manufacturers have faced recently a particular challenge due to the combination of import dependency and a sharp drop in the prices of imported panels. In 2023, the solar photovoltaic sector in the EU and globally saw the prices of the panels plummet from circa 0.20 €/W to less than 0.12 €/W. This unsustainable situation is weakening the viability of existing European production and jeopardises planned investments for new manufacturing plants announced over the last 2 years. As a consequence, some European companies have either reduced their operations, announced that they would prioritise production in other international markets, in particular the U.S., or even announced their closure.
Over the last years, the EU has taken initiatives to strengthen its support to the European solar PV manufacturing sector, which includes several globally competitive companies in several steps of the value chain.
However, further urgent action is needed in the short term to address the crisis in the European manufacturing industry.
All relevant stakeholders – the Commission, the Member States and the companies active along the European solar PV value chain - should ensure that the green transition and the European industrial objectives go hand in hand, accelerating the deployment of renewables while at the same time enhancing the EU''s security of supply by supporting the competitiveness of the sector and the jobs it creates in the EU.
To this end, the European Solar Charter sets out immediate actions to be taken by the Commission, EU Member States and the representatives of the solar PV value chain, in particular wholesale, distribution and manufacturing parts, to be implemented ensuring full compliance with EU competition law and state aid rules.
The undersigning Member States and solar industry representatives, respectively COMMIT to implementing as a matter of priority the following actions:
All signatories COMMIT to monitor future developments in the sector and contribute to a fair and competitive international environment in the solar sector.
One year following the signature of the Charter, the Commission will review the implementation of the adopted commitments.
Leaders of 23 EU member states and the European Commission have signed a Solar Charter pledging to step up financing opportunities, skills capacity and to address unfair competition in the bloc during an Energy Council.
Austria, Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and the Netherlands signed the European Solar Charter in Brussels on Monday (April 15) in Brussels in an attempt to accelerate deployment of solar energy in the EU, with a view to reaching the bloc''s binding commitment to provide at least 42.5% renewable energy by 2030.
Tinne Van der Straeten, Belgian Minister for Energy currently holding the rotating EU Presidency, said the charter "aims to anchor and maintain the competitiveness" of Europe''s solar industry.
In 2023, a new record was set with 27% of electricity in the EU coming from solar and wind power, according to the Belgian Presidency. However, while 56 GW of photovoltaic (PV) panels were installed in Europe in 2023, according to the Belgian minister, 97% of the installed capacity was made up of Chinese panels.
Member states are also considering "innovative forms" of solar energy deployment such as agriculture-PV, floating solar, and PVs integrated with infrastructure, vehicles or buildings. Plans are also in motion to expand skills for the solar sector through the Solar Academy and the Renewable Energy Skills Partnership.
"The European Solar Charter brings together the Commission, national authorities and the industry, fostering cooperation and bringing support to the production of solar panels made in Europe," said Energy Commissioner Kadri Simson.
Walburga Hemetsberger, CEO of industry group SolarPower Europe, said the Solar Charter marked a key moment of "recognition" and acclaimed leaders for standing up to their commitments.
"The continent''s governments have made a high-level promise to our manufacturers, recognising their critical role in the strategic supply chains of today and tomorrow," said Hemetsberger.
She noted, however, that "rapid action" and "concrete measures" at national and EU level are paramount to support manufacturers and keep unfair foreign competition at bay.
"This means rolling out resilience criteria in public procurement and auctions as soon as possible, unlocking subsidy support, and establishing dedicated EU financing for solar," she added, referring to the provisions in the Net Zero Industry Act (NZIA) which seek to apply resilience and sustainability criteria to avoid overdependence on foreign sources.
Member states alongside industry representatives have committed to promote supply of solar PV products in Europe through "rapid implementation" of the NZIA and the Energy Performance of Buildings Directive (EPBD), meant to revamp old buildings, which promotes installation of solar rooftops.
The EPBD requires member states to take action in public and non-residential buildings from 2026 to 2030 to progressively equip roofs with solar installations. To do so, governments must also roll out national strategies, policies and measures on solar installations in residential buildings.
Rooftop solar PV growth is thriving, growing 54% year-on-year, according to a report from the NGO Climate Action Network (CAN) Europe, putting France and Lithuania as the frontrunners and Bulgaria and Romania as the laggards.
EU leaders are considering "all available EU funding opportunities" including "flexibilities" under State aid, according to the Charter.
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