Europe's solar power industry has issued a cautionary message to policymakers, advising against the imposition of tariffs on imports. This plea arises from concerns that disrupting the supply chain, particularly products originating from China, could jeopardize Europe's ability to swiftly advance its clean energy ambitions.
This plea emerges as both the European Commission and various European governments contemplate more stringent measures regarding imports. The primary aim is to bolster clean technology manufacturing within Europe while diminishing reliance on Chinese products crucial for the green transition.
The European Commission recently initiated an investigation that could potentially result in tariffs aimed at safeguarding EU producers from the influx of cheaper Chinese electric vehicle imports. Simultaneously, Germany is actively exploring options, including trade protections, to shield its domestic solar manufacturers from the downward spiral of global solar prices, as revealed by a government document seen by Reuters.
Gunter Erfurt, a Board Director at SolarPower Europe—an industry group encompassing producers, significant buyers, and installation companies—expressed skepticism regarding the effectiveness of tariffs in addressing the prevailing challenges within the European solar sector. Erfurt emphasized the need to incentivize solar installations originating from resilient European solar production rather than applying sanctions to the entire industry. He suggested that this approach would allow for the uninterrupted deployment of solar energy while fostering steady growth in European solar manufacturing. Gunter Erfurt also serves as the CEO of Swiss solar cell manufacturer Meyer Burger.
SolarPower Europe, in a formal statement, underscored that imposing trade barriers on solar products would constitute a “lose-lose strategy.” Instead, they advocated for measures to facilitate the growth of local manufacturers. This includes streamlining support for domestic factories in compliance with EU state aid regulations. Notably, the statement did not explicitly mention China.
According to data from the European Commission, over 90% of Europe's ingots and wafers used in solar panels are sourced from China. European manufacturers have raised concerns about a surge in Chinese solar modules entering the European market at prices below manufacturing costs, prompting them to reduce their own prices.
However, there is a lingering industry fear that restricting supplies from China could lead to a situation reminiscent of the period between 2013 and 2018. During this time, Europe experienced a temporary dip in solar energy installations, coinciding with EU-imposed limits on tariff-free imports of Chinese solar panels and cells.
Despite these challenges, the European Union managed to achieve a significant milestone by installing a record 40 gigawatts of solar power capacity in the previous year, underscoring the resilience and potential of the European solar industry.
