Two German regional governments, Saxony and Saxony-Anhalt, have called upon the European Union and the German government to safeguard the domestic solar industry from the influx of cheaper imported solar panels. Their demand includes a call for a ban on the import of solar modules that do not meet the European Union's climate and labor standards.
German solar manufacturers have voiced concerns about the rising influx of Chinese solar panels being offered at prices significantly below manufacturing costs. European photovoltaic panels account for only a small portion of Germany's solar market.
After a meeting with representatives from the solar industry in Berlin, the governments of Saxony and Saxony-Anhalt have released a comprehensive 10-point plan aimed at “rescuing the solar industry” in Germany.
One of the key points in their plan is a call for public tenders or feed-in tariffs to consider hidden costs related to the recyclability, carbon footprint, and manufacturing conditions of imported solar panels. This move underscores the importance of aligning with sustainability and ethical standards in the solar industry.
The German Ministry of Economy has also indicated its examination of various options, including subsidies and trade instruments, to shield domestic manufacturers from the global decline in solar panel prices. Chinese panels initially intended for the U.S. market but redirected to Europe have created substantial price pressures on European manufacturers.
Notably, there is an excess of approximately 40 gigawatts of solar panels currently stockpiled in European warehouses, according to Marius Mordal Bakke, a solar supply chain analyst at Rystad Energy. This surplus has been driven by the oversupply of Chinese panels, leading to a significant reduction in prices from around 0.24 euros per peak Watt at the beginning of the year to approximately 0.15 euros. In contrast, European manufacturers are pricing their panels at 0.30 euros per peak Watt.
Within the German solar industry, there is a divergence of opinions, with installers opposing trade barriers and manufacturers advocating for some level of protection. This divide has prompted discussions within the industry about the best approach to ensure its long-term stability and profitability.
Gunter Erfurt, the CEO of Swiss photovoltaics maker Meyer Burger, suggests that there are more strategic measures than trade tariffs to support European solar companies. One proposal is for Germany to require a “resilience segment” of European-made modules to be specified in public tenders, ensuring a market for domestic products.
While addressing concerns related to the solar industry, Boris Radke of the solar installer Enpal emphasizes the importance of not sacrificing a stable, profitable, and customer-focused industry for the sake of protecting a smaller, less competitive business model.
