In a publication that the think tank Bruegel published on Tuesday, 6 February, authors Ben McWilliams, Simone Tagliapietra, and Cecilia Trasi believe that in order to strengthen Europe’s position in the solar energy sector (particularly with regard to China), “Smart measures, not tariffs or blunt subsidies, should be deployed to strengthen Europe’s standing in solar power”.
Although the European Union had seen a sharp increase in solar panel installation in 2023 due to lower prices—which enabled it to achieve record capacity targets—most panels were imported from China.
In fact, European solar-panel assemblers are finding that they cannot compete with their Chinese competitors, who produce quality panels much more efficiently and at a lower cost.
European solar-panel manufacturers’ calls for taxpayer support focus on tariffs, subsidies, and the purchase of surplus stock, but these measures have proved ineffective in the past.
“The protectionist measures offered only temporary relief for manufacturers at the expense of climate goals”, the Bruegel researchers insist.
In their view, the global solar-energy market is oversupplied, and there is no climate benefit in subsidising additional production today. Rather, the emphasis should be on deploying solar panels.
“Not doing so would be far more damaging to Europe’s economic and environmental resilience than an overreliance on imported Chinese solar panels”, affirm the authors.
To foster resilience and minimise its dependence, the EU should instead focus on amassing strategic stockpiles, diversifying imports, and recycling solar panels.
The researchers also insist that priority should be given to innovation. Moreover, they explain, “Taxpayer support should be granted to clean technologies, solar included, only when a clear climate and competitiveness benefit can be demonstrated”. (Original version in French by Pauline Denys)