The European solar industry faces significant challenges stemming from its heavy reliance on imports, primarily from China, which poses risks to both short-term resilience and long-term price stability. In 2023, the solar photovoltaic sector in the EU and globally saw the prices of the panels plummet from ca. 0.20 EUR/W to less than 0.12 EUR/W. The concentration of demand from a single supplier leaves the value chain vulnerable to disruptions, highlighting the urgent need for a diversified and resilient supply network. 

In response to these challenges, the European Commission has intensified its efforts to support the solar sector through the European Solar Charter. Signed during an informal Energy Council meeting by EU Commissioner for Energy Kadri Simson, along with energy ministers from 23 EU countries and industry representatives, the charter outlines a series of voluntary actions aimed at bolstering the EU photovoltaic sector.

Commissioner Kadri Simson said taht "the solar photovoltaic manufacturing sector is key for achieving our energy, climate and competitiveness goals. We must ensure the solar industry remains strong for Europe’s future, renewables-centred energy mix. 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."

By fostering cooperation and promoting sustainable practices, the charter seeks to strengthen the viability of existing European production while encouraging investments in new manufacturing plants, ultimately ensuring the long-term resilience and competitiveness of the European solar industry.

The European Solar Charter marks the latest step in the Commission’s actions to support solar panel manufacturing in Europe. Previous measures include, amongst others, a proposal for a Net-Zero Industry Act, which is now provisionally agreed by the co-legislators, and the establishment of the European Solar Photovoltaic Industry Alliance. It will help ensure that the green transition and Europe’s industrial objectives go hand in hand, accelerating the deployment of renewables, while at the same time enhancing the competitiveness of the sector and the creation of green jobs.

Industry's reaction

At the signing, CEO of SolarPower Europe, Walburga Hemetsberger said that "solar in Europe has skyrocketed in recent years. Building on the 2022 EU Solar Strategy, the EU Solar Charter reinforces the reality that solar PV is now a mainstream energy technology. Europe, and the world, is banking on solar to guide us out of the climate and energy crisis towards a new era of green prosperity and security."

Hemetsberger explained that the Solar Charter is an important moment of recognition. "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. Nevertheless, we continue to urge rapid action and concrete measures at national and EU level to support manufacturers. 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.