Germany's federal states want stronger support for domestic solar component production

Germany's Bundesrat has adopted a resolution calling for greater support for the domestic and European solar industry supply chain. The Bundesrat says new measures are needed to help European industry compete with subsidised Chinese suppliers.

Germany's Bundesrat, which represents the governments of the individual federal states, is calling for stronger support for the solar supply chain. Such support, it says, would help strengthen the position of European industry, which has long struggled to compete with low-cost suppliers from China. One option could be special auctions for renewable energy, in which developers of projects using components manufactured in the EU could secure higher support.

The Bundesrat has also urged the Bundestag to swiftly adopt the so-called Solar Package I. According to Clean Energy Wire, it includes reforms aimed at further accelerating the expansion of solar power in Germany. These could include harmonising support for ground-mounted solar installations and simplifying the processes for building rooftop systems and using “balcony” solar systems, which can be easily plugged into a socket.

German daily Handelsblatt recently reported, according to CLEW, that companies in the supply chain such as Meyer Burger, Solarwatt and Heckert Solar are questioning Germany's role as a location for solar panel manufacturing. The future of manufacturing in Germany and the EU will also depend on how the policy framework develops, the newspaper said.

"It is clear that production can only take place here if it is profitable," said Heckert Solar managing director Benjamin Trinkerl, adding that production is already being scaled back and new investments put on hold.