Solar installations built with European-made modules can compete with Chinese imports if the right policies are put in place, according to a new report from SolarPower Europe and Fraunhofer ISE.
The study shows that producing a module with EU-made cells costs about 10.3 €ct/Wp more than in China, translating into a 14.5% higher levelised cost of electricity for European products.
Utility projects using EU modules cost 60.8 €ct/Wp compared with 50.0 €ct/Wp for Chinese systems. The report added that EU-made modules already fall within the 15% cost threshold of the Net-Zero Industry Act auction rules.
With a mix of CAPEX and OPEX support for manufacturers and developers, and assuming factories reach 3–5GW capacity, the gap could shrink to less than 10%.
The report estimates industry support requirements at €1.4bn–€5.2bn annually to reach 30GW of European solar manufacturing by 2030, with up to 39% of costs offset through wider economic benefits.
SolarPower Europe chief executive Walburga Hemetsberger said: “With the right policies, Europe can competitively deliver 30GW of solar manufacturing by 2030, creating thousands of local jobs, and building a resilient, innovative solar supply chain that keeps economic value here at home.”
Recommendations include an EU-level output-based support scheme and the roll-out of Net-Zero Industry Act policy tools across Member States, such as “Made-in-EU” bonus points in rooftop support and public procurement.