SolarPower Europe Study Outlines Pathway to Reshore European Solar Manufacturing

A comprehensive study by SolarPower Europe and Fraunhofer ISE has identified a practical pathway for reshoring solar manufacturing to Europe, revealing that the cost differential between European and Chinese solar modules is more manageable than commonly perceived. The research indicates that European-made solar modules cost approximately 10.3 cents per watt more than Chinese imports, which translates to only a 14.5% price difference for the final electricity generated. This finding challenges conventional assumptions about the insurmountable cost advantages of Chinese solar manufacturing and suggests that strategic policy interventions could make European production economically viable.

The study's timing is particularly significant as Europe seeks to reduce its dependence on Chinese solar imports and rebuild domestic manufacturing capacity that has largely shifted to China over the past decade. The relatively modest cost difference identified in the research provides policymakers with a clear target for intervention strategies that could bridge the competitive gap. According to the analysis available at https://www.solarpowereurope.org, the success of reshoring efforts will depend heavily on how seriously European policymakers approach the challenge of revitalizing an industry that has seen substantial offshoring.

The implications extend beyond mere cost considerations to encompass energy security, supply chain resilience, and technological sovereignty. As Europe accelerates its clean energy transition, having domestic solar manufacturing capacity could provide greater control over supply chains and reduce vulnerability to geopolitical disruptions. The study suggests that with appropriate policy support, Europe could rebuild a competitive solar manufacturing sector that supports local jobs while contributing to climate goals.

Industry observers note that the findings come at a critical juncture when many North American companies are also exploring opportunities in the evolving global solar market. The research provides a quantitative foundation for policy discussions around industrial strategy, trade measures, and support mechanisms that could enable European solar manufacturers to compete effectively. The detailed cost breakdown available through SolarPower Europe's research offers concrete data points for designing targeted interventions that address specific cost components where European manufacturers face disadvantages.

The potential resurgence of European solar manufacturing could have broader implications for global supply chain dynamics and competition in the renewable energy sector. If successful, European reshoring efforts could establish new benchmarks for sustainable manufacturing practices and innovation in solar technology. The study represents a significant step toward quantifying what it would take to rebuild a strategic industry that has become increasingly concentrated in China, offering hope for more diversified and resilient global solar supply chains in the future.