Energy commissioner: We cannot stop solar panel imports, but must support domestic industry

Although local suppliers in the EU have long criticised cheap imports of solar panels, the energy commissioner says they are nevertheless essential. The EU cannot close its borders to cheap imported panels, she says, as doing so could jeopardise its renewable energy targets. However, the EU should support domestic manufacturers so they can be more competitive in local markets.

Energy commissioner Kadri Simson also attended Monday’s meeting of EU energy ministers, as is customary. One of the topics was cheap solar panel imports, which the EU’s domestic industry often struggles to compete with. According to Reuters, the closure of European factories is increasing pressure on Brussels to protect or support local manufacturers in some way.

Simson rejected any ban on imports, however, saying it could jeopardise the EU’s renewable energy targets. According to Reuters, most solar panels and other components of solar power plants installed in the EU come from China.

“There are various proposals for how we could support our industry, but it is absolutely clear that we cannot close our borders because we need solar panels,” Simson told the media at the meeting of ministers.

In a letter sent to ministers ahead of the meeting, Simson and European Commissioner for the Internal Market Thierry Breton outlined several options for supporting domestic industry, according to Reuters. In addition to direct support for local manufacturers, these could include introducing auctions and support schemes for energy sources that take into account the high environmental and labour standards of European manufacturers.

“We need to support domestic industry, but we need all products to achieve our very ambitious targets,” Simson added.

EU member states installed a record amount of new solar capacity last year. According to Reuters, newly installed capacity rose by 40% last year compared with 2022. Most of the components used, including solar panels, came from China. According to data from the International Energy Agency, in some cases they accounted for as much as 95% of all power plant components.