A new study by SolarPower Europe and Fraunhofer ISE suggests that Europe can revive its solar manufacturing industry despite a significant cost gap with Chinese imports. The study, which analyzes the economics of solar module production, finds that European-made modules cost approximately 10.3 euro cents per watt more than Chinese equivalents. However, this translates to only a 14.5% price difference in the final cost of electricity generated, making reshoring a feasible goal if policymakers implement the right measures.
The report emphasizes that the current price disadvantage is not insurmountable. By scaling up production, investing in automation, and providing targeted support such as tax incentives or subsidies, Europe could reduce costs and compete effectively. The study also highlights the strategic importance of reducing reliance on Chinese imports, which currently dominate the global solar market. With growing geopolitical tensions and supply chain vulnerabilities, reshoring production could enhance Europe's energy security and create jobs.
SolarPower Europe's analysis comes as the European Union seeks to boost its clean energy manufacturing capabilities under initiatives like the Net-Zero Industry Act. The study provides a roadmap for achieving this goal, including recommendations for public-private partnerships and streamlined permitting processes. It also notes that European-made modules offer advantages in quality and sustainability, which could appeal to environmentally conscious consumers.
The findings have implications beyond Europe, as other regions like North America also explore reshoring strategies. Companies like PowerBank Corporation are monitoring these developments closely. The study concludes that with decisive action, Europe can reclaim a significant share of the solar manufacturing market within the next decade.
