In a bid to shield German solar power manufacturers from the downward spiral in global solar module prices, the German government is actively considering a range of strategies, according to a document from the economy ministry seen by Reuters on Thursday.
European photovoltaic manufacturers have voiced concerns over what they describe as a “flood” of Chinese solar modules flooding the European market at prices significantly below their manufacturing costs. This price pressure has compelled European manufacturers to reduce their own prices, raising alarm bells in Germany's solar industry.
The German economy ministry has responded to these concerns by exploring potential measures to support domestic solar manufacturers. Among the options on the table are subsidies and trade protection mechanisms.
However, the ministry emphasized that any potential state aid for manufacturers would need to receive approval from the European Commission on a case-by-case basis. This cautious approach aligns with European Union rules governing state aid, which require such interventions to be carefully evaluated to ensure they do not distort competition within the European market.
This development underscores the challenges faced by European solar manufacturers in the face of fierce competition from Chinese counterparts, who have been able to offer solar modules at prices that European manufacturers find difficult to match. The German government's proactive stance reflects its commitment to maintaining the competitiveness of its domestic solar industry while adhering to European regulations and fostering a level playing field for all market participants.
