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BSW Solar warns against failure to establish a European solar industry

There is not much time left for politicians - both at European and national level - to pave the way for the photovoltaic industry to re-establish itself. The window of opportunity for securing the European solar industry is beginning to close, warns the German Solar Industry Association (BSW Solar).

Stimulate investment

The association is therefore appealing to the German government, in conjunction with other European countries, to quickly take effective measures to ensure that manufacturers of solar modules invest in the development of additional production capacities along the entire value chain - from ingots to wafers and solar cells to finished panels. To do this, however, they need appropriate investment stimuli in order to build gigawatt factories that are competitive on the European market.

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The BSW Solar does not believe that new market barriers or trade restrictions against manufacturers from the Far East are expedient. Therefore, the German government must now set a good example and include a so-called resilience component in Solar Package I this year.

Adapt tenders

This involves project planners and operators receiving a bonus in addition to the feed-in tariff and market premium for a limited period of time if key components from European production are used in the construction of solar systems. As part of a separate tendering segment, the maximum permissible bid values in the auctions for market premiums could also be increased accordingly if the planned project is built with European components.

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In this way, the higher production costs incurred during the construction of the European factories could be cushioned and the competitive disadvantages compared to the solar factories in Asia and the USA, some of which are highly subsidised, could be compensated.

More European goods for trade and crafts

However, BSW Solar also sees the trade and craft sector as having a responsibility. The association proposes a voluntary commitment. Retailers and tradespeople should include more European components in their product range and actively offer them to their customers.

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According to the association, this could usefully flank the legal regulation in the solar package, but not replace it. "A clear and binding signal to the solar industry that not only investments in solar systems but also in the solar industry are worthwhile again in Germany is long overdue," emphasises Jörg Ebel, President of BSW Solar. "Not diversifying more strongly in this booming growth market now or saving on such future investments would be risky after the experiences of the energy crisis and pandemic supply bottlenecks and an irreversible omission for the value creation of our economy," warns Jörg Ebel. (su/mfo)