European Solar PV Manufacturing: Terminal Decline or Hope for a Rebirth?
While solar photovoltaic (PV) installations are booming in Europe (and in other parts of the world), the local industry is closing down. Over the past two years, the European installed solar PV capacity has been multiplied by two. On the other hand, the remaining European manufacturers of solar PV panels are dying.
Installed solar PV capacities are experiencing an unprecedented increase in Europe: in two years, they have been multiplied by two with 60 gigawatts (GW) added in 2023. However, local solar PV manufacturers are not benefiting from it as the Chinese competition is knocking them down.
Structurally much more competitive, prices of Chinese solar panels have further decreased by 42% in 2023 – making it difficult even for some Chinese companies to survive and forcing many of the remaining European manufacturers out of the market.
This situation fragilizes Europe’s strategic autonomy and decarbonization. Covid-19-like disruption or an aggression against Taiwan would leave the continent without any supply. American manufacturers are also flexing their muscles with the aggressive Inflation Reduction Act.
Europe’s answer, the Net Zero Industry Act (NZIA), a tougher approach to China’s imports and national support measures, could create a new generation of solar PV manufacturers in Europe.
Available in:
Regions and themes
ISBN / ISSN
Share
Download the full analysis
This page contains only a summary of our work. If you would like to have access to all the information from our research on the subject, you can download the full version in PDF format.
European Solar PV Manufacturing: Terminal Decline or Hope for a Rebirth?
Author(s)
Thibaud VOÏTA
Associate Research Fellow, Energy and Climate Center, Ifri
Related centers and programs
Discover our other research centers and programs
Center for Energy & Climate
Ifri's Energy and Climate Center carries out activities and research on the geopolitical and geoeconomic issues of energy transitions such as energy security, competitiveness, control of value chains, and acceptability. Specialized in the study of European energy/climate policies as well as energy markets in Europe and around the world, its work also focuses on the energy and climate strategies of major powers such as the United States, China or India. It offers recognized expertise, enriched by international collaborations and events, particularly in Paris and Brussels.
Find out more
Discover all our analyses
Norway’s Energy Policy Dilemmas and Debates: In or Out?
2026 may prove to be the end of the Norwegian exception. Norway has long prided itself on the successful combination of fossil fuel extraction with a strong social democracy.
The US’s Critical Mineral Offensive Strategy: How Can Europe Step Up?
As Organization for Economic Co-operation and Development (OECD) economies are confronted with mounting threats to critical raw materials (CRM) supplies, resolute interventionist policies are needed to build resilient value chains.
Financial Tools for Boosting Resilience of CRM Value Chains and Strategic Stockpiling
Critical Raw Material (CRM) value chains are more vulnerable than ever and entire vital industries in Europe are now at risk if supplies are not secured through strategic and urgent actions, given mounting geopolitical confrontation, resource nationalism, growing demand and limited supply increase.
Placing the EU on a Warfare Footing: Energy and Raw Materials Priorities for 2026
The year 2025 has confirmed that one must prepare for much worse in the field of geopolitics and geoeconomics as the intensity and frequency of shocks increase and as the European Union (EU) has no more stable flanks now that crises with the United States (US) become so frequent and reveal a systemic rift. In the world, barriers to trade multiply and dependencies are weaponized.