Europe’s flagship industrial policy tool for clean technology is struggling to gain traction. Nearly nine months after Member States were required to start applying the Net-Zero Industry Act (NZIA) to renewable energy auctions, only six have started doing so for solar PV. Moreover, each has taken its own approach. In a report published on 15 September 2026, SolarPower Europe warns that the slow, uneven rollout risks undermining the very manufacturing revival the legislation was designed to trigger.
The NZIA, adopted in June 2024 and followed by secondary legislation in May 2025, is intended to reshape demand for solar equipment across the EU. By requiring Member States to apply non-price criteria to at least 30 percent of auctioned renewable capacity, or 6 GW a year, the law seeks to reward supply-chain resilience and reduce dependence on dominant non-EU suppliers. These criteria should carry a weighting of between 15 and 30 percent in the overall evaluation.
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The stakes are considerable. Solar PV has become a central pillar of the European energy system, with more than 400 GW installed and roughly 13 percent of average annual EU electricity generation. Yet deployment continues to rely heavily on imports, particularly from China. The NZIA was designed to link that deployment more closely to economic resilience and supply-chain diversification, giving European manufacturers a fighting chance to scale up.
Six countries, six approaches
According to the report, early implementation is fragmented. Italy has moved fastest, awarding 1.1 GW of solar PV capacity through its transitional FER-X auction and demonstrating that the resilience criterion can be applied at scale. Several Italian support schemes go further still, introducing 'Made in EU' eligibility requirements upfront, an approach that pre-empts the Industrial Accelerator Act (IAA) currently under negotiation.
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Austria has introduced a 20 percent 'Made in Europe' bonus, encouraging residential PV and battery storage projects to use European-made components. France has begun applying resilience criteria to ground-mounted auctions, requiring key PV components to come from diversified supply chains. Ireland is using its RESS 6 auctions under Article 26, which covers auctions, allocating 5 percent of non-price scoring to resilience. Lithuania is implementing Article 28, which covers other public support schemes, by offering higher subsidies to households choosing high-efficiency modules from diversified sources. Spain, meanwhile, is applying award-based resilience criteria mainly through public support schemes under the same article.
Some of these applications go beyond the NZIA’s minimum requirements, while others stop short. Either way, the resulting variance creates additional complexity for market participants at a moment when renewable deployment must accelerate.
Industry warnings
Anett Ludwig, Head of Supply Chains at SolarPower Europe, described the situation as concerning. "We see development in the right direction, but implementation is too slow. That itself is a concern, but more serious is the patchwork approach taken by Member States." She added that the upcoming Industrial Accelerator Act should be strengthened with strict 'Made in EU' requirements.
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Dries Acke, Deputy CEO of SolarPower Europe, argued that demand-side measures alone will not be sufficient. "The NZIA gives Member States a tool to harness the power of the Single Market. This report shows that much of that potential remains underutilised. The Commission must ensure the NZIA can be implemented easily and consistently." He called for the establishment of a Cleantech Manufacturing Bank under the European Competitiveness Fund, offering production-linked financial support. "This is essential for any credible industrial policy."
Towards the Industrial Accelerator Act
The report arrives as negotiations begin on the Industrial Accelerator Act, expected to reinforce the NZIA framework. SolarPower Europe supports the introduction of strict 'Made in EU' criteria applied within the EU, EEA, Switzerland and the UK, avoiding extension beyond that perimeter. The association is also urging the Commission to establish a central repository of national NZIA measures to encourage harmonisation.
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Because implementation remains so limited, it is too early to measure the impact on European manufacturing capacity. According to the report, success will depend on more consistent and balanced application across Member States, so that the NZIA can draw on the full weight of the Single Market.
SolarPower Europe will continue to monitor national frameworks as they emerge, tracking the effectiveness, complexity and cost of each approach. For now, its verdict is that the legal tools exist but are not yet being used consistently. (hcn)
