European Solar Firms Urged EU to Revitalize Industry
Over 35 companies have called on the European Union to establish a comprehensive domestic photovoltaic manufacturing supply chain.
Updated on Oct. 12, 2026 in Manufacturing
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More than 35 solar companies and institutions have petitioned European Parliament committees to rebuild a complete photovoltaic value chain. The group aims to reduce reliance on imported solar components by boosting domestic production capabilities.
Why it matters
The industry initiative seeks to secure technological sovereignty and resilience for the region. By localizing production, signatories aim to cut dependency on external solar technology suppliers.
A domestic value chain targeting 30 GW of annual module production would support approximately 80,000 jobs and add 4 billion euros to EU GDP. The industry estimates this transition would generate 2 billion euros in annual taxes and social contributions.
The players
European Parliament
This legislative body serves as a primary recipient of the solar industry's formal policy proposals.
European Council
This institution defines the political direction and priorities of the European Union.
The details
Signatories requested that the Industrial Accelerator Act be used to mandate full value chain coverage within five years. The proposal specifically links support to the use of European-made production equipment to leverage the existing base of over 100 manufacturing sites.
Timeline
The position paper and letter were published on October 12, 2026.
The European Council will form its general approach over the coming weeks.
The goal is to cover the full solar value chain within five years of the policy taking effect.
Market Landscape
This initiative represents a strategic push to localize critical green energy infrastructure within the European Union. By leveraging existing assets like 38 machine builders, the industry aims to compete more effectively against current market dominance by non-European suppliers.
While the proposal focuses on large-scale industrial shifts, the industry estimates the transition would result in an additional cost of only 0.25 cents per kilowatt-hour. These changes are intended to provide long-term energy security rather than immediate retail price adjustments for consumers.
The takeaway
Achieving technological sovereignty in solar energy requires a synchronized effort across the entire manufacturing pipeline. Strengthening domestic value chains can create significant economic growth and job opportunities for the region.
What happens next
The European Council is scheduled to form its general approach to the solar industry proposal in the coming weeks.
Further reading
For more on sector trends, visit the Manufacturing section.
More information
View the complete position paper and letter.
Live Poll
Should the European Union prioritize building its own solar energy supply chain over importing cheaper parts?
