More than 35 companies and institutions representing Europe’s solar industry have jointly called on the European Parliament, the Council and EU Member States to strengthen domestic photovoltaic (PV) manufacturing through the proposed Industrial Accelerator Act (IAA). The initiative aims to rebuild Europe’s complete solar manufacturing value chain, reduce dependence on imported components and improve the region’s long-term industrial competitiveness and energy security.
The European Solar Manufacturing Council (ESMC), representing the signatories, has submitted a joint letter accompanied by a 13-page position paper to members of the European Parliament’s Industry, Research and Energy (ITRE), Internal Market and Consumer Protection (IMCO), and International Trade (INTA) committees. The documents outline existing manufacturing capabilities, supply-chain gaps, investment requirements and the potential economic benefits of establishing an integrated European solar manufacturing industry.
According to the position paper, Europe currently has more than 75 solar module assembly companies but limited manufacturing capacity in upstream segments of the photovoltaic supply chain. Only a small number of companies are producing solar cells or developing gigawatt-scale cell manufacturing facilities, while the region has just one ingot-and-wafer project, one existing polysilicon producer and an additional polysilicon project under development.
The industry representatives warned that module assembly alone is insufficient to establish supply-chain resilience and technological independence. They emphasised that a competitive European solar industry requires domestic manufacturing capabilities across the entire value chain, including polysilicon, ingots, wafers, cells and modules.
Christoph Podewils, Secretary General of ESMC, highlighted the need for a market framework that recognises and supports European manufacturing. He stated that the region already possesses the necessary projects, technologies and investors, but requires effective market conditions to encourage domestic production. He further emphasised that the Industrial Accelerator Act should establish a clear definition of European-made products and introduce comprehensive value-chain coverage within a defined implementation period.
The position paper also identifies Europe’s existing strengths in photovoltaic manufacturing equipment. At least 38 specialised European machinery manufacturers currently provide technologies covering nearly every stage of solar production. In several manufacturing processes, European suppliers represent the only available global alternative to Chinese equipment manufacturers. Many of these companies also supply technologies to the semiconductor industry, highlighting the strategic importance of preserving Europe’s industrial expertise.
To strengthen domestic solar manufacturing, the signatories have outlined three major policy recommendations. The first calls for the swift implementation of a strong Industrial Accelerator Act with a strict definition of “Made in Europe”, early application of its provisions and coverage of the complete solar manufacturing value chain within five years of the legislation entering into force. The proposal also seeks to ensure that European-made production equipment is included in manufacturing support measures.
The second recommendation focuses on protecting European manufacturers against systemic global overcapacity, foreign subsidies and dumping practices. The industry representatives have called for appropriate market protection mechanisms aligned with the European Union’s emerging overcapacity and diversification framework.
The third recommendation seeks adequate investment and operational support to enable manufacturers to scale production and attract private capital. The signatories have highlighted the importance of targeted, time-limited operating cost support where justified, noting that solar manufacturing involves significant ongoing operational expenditure.
The economic assessment presented in the position paper, based on figures from the Fraunhofer Institute for Solar Energy Systems, estimates that establishing a European solar manufacturing value chain capable of producing 30 GW of modules annually could support approximately 80,000 direct and indirect jobs. Such a manufacturing ecosystem could contribute around €4 billion annually to the European Union’s gross domestic product and generate approximately €2 billion per year in taxes and social contributions.
The analysis further estimates that the additional cost associated with European-manufactured solar components would amount to approximately €0.0025 per kilowatt-hour, equivalent to 0.25 euro cents per kWh. According to the paper, this cost falls within the resilience-related provisions permitted under the EU’s Net-Zero Industry Act for renewable energy auctions.
The signatories argue that the economic benefits of developing a domestic manufacturing industry, including employment generation, industrial investment and improved supply-chain security, would outweigh the relatively limited additional electricity costs.
Carsten Rohr, Co-Chair of ESMC and representative of RESiLICON, one of the initiative’s organisers, stressed that investors require predictable demand for European-manufactured products rather than relying solely on subsidies. He highlighted the importance of creating market opportunities for domestically produced polysilicon, wafers and solar cells to encourage private investment and prevent capital from moving to other regions.
As European Parliament committees continue developing their positions on the Industrial Accelerator Act and the Council prepares its approach, ESMC and the participating companies have urged Member States to support stronger European-origin requirements. In particular, the signatories favour a limited, opt-in definition of Union origin rather than automatically extending European-origin treatment to products manufactured in countries covered by EU free trade agreements.
The initiative reflects growing efforts within Europe’s solar manufacturing industry to establish a more integrated and competitive domestic supply chain. Industry representatives believe that coordinated policy measures, investment support and market protection mechanisms will be essential to rebuilding photovoltaic manufacturing capacity and strengthening Europe’s long-term energy and industrial resilience.
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