Europe is making a strategic push to bring solar PV manufacturing back home. The goal? Bolstering energy security, reducing reliance on external supply chains, and driving green economic growth.

This move is a direct response to recent geopolitical vulnerabilities, aiming for strategic autonomy in critical clean technologies. It promises new jobs, economic value, and a lower carbon footprint for solar products.

While Europe’s current share in global solar production is small, and supply chain gaps exist, the EU is responding with strong policies:

• The EU Solar Strategy targets over 700 GW of installed PV by 2030.
• The European Solar PV Industry Alliance (ESIA) aims for 30 GW annual manufacturing capacity by 2025.
• The Net-Zero Industry Act (NZIA) seeks to ensure 40% of strategic net-zero tech needs are met by EU manufacturing by 2030, with faster permitting and support.
• The European Solar Charter promotes sustainability and resilience criteria in tenders.

Significant challenges remain, including high production costs (especially energy prices), intense competition from Chinese overcapacity, skilled labor shortages, and profitability concerns due to falling electricity prices.

The path forward involves overcoming these hurdles, fostering integrated production, and leveraging a “green premium” for low-carbon, EU-made solar.

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