The solar power industry in Europe has issued a warning to policymakers, advising against imposing tariffs on imports.
They express concerns that disrupting the supply of products from China could seriously hinder Europe's ability to rapidly adopt clean energy solutions.
This plea comes as both Brussels and European governments contemplate stricter measures on imports, aiming to boost clean tech manufacturing within Europe and reduce dependence on China for products essential to the green transition. The European Commission has initiated an investigation that might result in tariffs to safeguard EU producers against cheaper Chinese electric vehicle imports. Germany is also exploring options, including trade protections, to shield local solar manufacturers from declining global prices.
Gunter Erfurt, Board Director at SolarPower Europe, an industry group representing producers and stakeholders in the solar sector, argued that tariffs are not the ideal solution for the current challenges facing the European solar industry. Instead, he suggests incentivizing solar installations originating from resilient European production, allowing the solar energy deployment to proceed smoothly while nurturing the growth of European solar manufacturing.
SolarPower Europe emphasized that trade barriers on solar would be a "lose-lose strategy" and recommended supporting local manufacturers' growth. They propose making it easier to back local factories under EU state aid regulations.
It's worth noting that the EU heavily relies on China, sourcing over 90% of its ingots and wafers for solar panels from there. European manufacturers have been grappling with an influx of Chinese solar modules in the European market, often sold at prices below production costs, leading to price reductions by European manufacturers. However, there are concerns that restricting Chinese supplies could result in a situation similar to the 2013-2018 period when European solar energy installations temporarily declined, coinciding with EU restrictions on tariff-free imports of Chinese solar panels and cells. Despite such challenges, the EU achieved a record installation of 40 gigawatts of solar power capacity last year.
