The debate surrounding the import of inexpensive Chinese solar panels into Europe continues to intensify, with EU leaders affirming their commitment to keeping the region accessible to such products.
EU energy policy chief Kadri Simson emphasized on Monday that while supporting struggling local solar panel manufacturers is crucial, the EU must also adhere to its climate targets. The closure of factories among Europe’s limited number of solar panel producers has prompted the industry to seek urgent assistance from Brussels, potentially including trade restrictions on affordable Chinese imports that European companies find challenging to compete with.
Simson, however, ruled out the possibility of completely cutting off imports, stating that such a move could jeopardize the EU’s capacity to install sufficient solar energy to meet climate targets. The majority of solar panels and components used in Europe are imported from China.
Addressing the ongoing challenges, Simson stated, “There are different proposals on how we can support our industry, but clearly we cannot close our borders because we need solar panels.” She stressed the need to support the local industry while ensuring access to products to meet ambitious climate targets.
During a meeting of EU countries’ energy ministers, proposals to address the sector’s challenges were discussed. These proposals, outlined in a letter from Simson and EU industry commissioner Thierry Breton before the meeting, include increased national state aid to support solar manufacturers and organizing solar auctions and support schemes that prioritize solar panels with high environmental and labor standards. Such criteria could potentially provide an advantage to EU manufacturers.
The letter also suggested that companies installing solar capacity commit to incorporating EU-made products in their portfolios. It proposed that ministers collectively agree to consider these proposals at upcoming EU meetings.
Despite the ongoing debate, EU countries witnessed record levels of solar capacity installation last year, marking a 40% increase from 2022. Notably, a significant portion of these panels and parts originated from China, with International Energy Agency data indicating up to 95% in some cases.