European solar leaders ask EU policymakers for more manufacturing support

European solar manufacturing faces shutdowns, threatening energy security and growth; urgent EU-backed action is the only solution.

European solar leaders are calling for stronger EU policies to protect solar manufacturing. Without action, Europe risks losing its solar supply chain. The Net Zero Industry Act is not enough—manufacturers need financial and operational support now.

The solar industry is at a turning point, and what happens in Europe will impact the global energy transition.

Europe’s Solar Industry at a Crossroads

Europe has long prided itself on being at the forefront of renewable energy adoption. However, its solar manufacturing sector is now facing an existential threat. Despite ambitious goals set out in the Net Zero Industry Act (NZIA), including producing 30GW of solar PV manufacturing capacity by 2025, many companies are shutting down rather than scaling up.

Recent examples highlight this crisis: REC Group closed its polysilicon facility in Norway, NorSun shifted operations to the U.S., and Meyer Burger shut down its German module assembly line before filing for insolvency. These setbacks demonstrate the fragility of the European solar supply chain. Without urgent political and financial intervention, Europe risks becoming almost entirely dependent on imports, undermining its energy sovereignty and green transition.

The Five Key Measures Proposed by Industry Leaders

In a joint letter to EU policymakers, the European Solar Manufacturing Council (ESMC) y SolarPower Europe (SPE) outlined five urgent actions.

Action Plan & Roadmap – A coordinated political commitment to rebuild Europe’s solar value chain.

Public Procurement Reform – Rewarding EU-made solar equipment while prioritizing cybersecurity and resilience.

Dedicated Cleantech Manufacturing Fund – Covering both capital expenditure (capex) y operational expenditure (opex) to strengthen competitiveness.

Temporary Opex Support – Bridging the gap between artificially low module prices and Europe’s higher production costs.

Increased Role for the European Investment Bank (EIB) – Providing zero-interest loans and guarantees to restore investor confidence.

These five measures represent a survival strategy. Without them, the EU’s green goals will falter, and the vision of solar independence will remain out of reach.

Impact on the Global Solar Supply Chain

The challenges in Europe extend beyond the continent. With European factories shutting down, global buyers of solar energy equipment must continue relying on international partners, particularly in Asia. This reliance highlights the role of China as the world’s most significant solar energy equipment manufacturer.

For international buyers, the European struggle means two things:

Short-term risks: Supply will remain concentrated outside of Europe, creating vulnerabilities if geopolitical disruptions arise.

Long-term opportunities: Should the EU strengthen its domestic capacity, buyers may gain more diversified options in future years.

Until then, global suppliers, particularly those in China, remain critical for keeping solar projects on track.

Why Solar Energy Equipment Manufacturers in China Lead the Market

China’s dominance in the solar supply chain is undeniable. As a solar energy equipment manufacturer in China, companies like USFULL provide not only solar pumping inverters, variable frequency drives, combiner boxes, DC circuit breakers, DC fuses, and DC surge protection devices, but also end-to-end solutions that meet global demand.

China’s advantage comes from three pillars:

Scale and Cost Efficiency – Mass production capabilities make Chinese products competitively priced.

Innovation and R&D – With strong investment in technology, Chinese firms produce cutting-edge solar inverters and protection devices.

Reliability of Supply – While European companies face closures, Chinese manufacturers maintain steady exports to over 90 countries.

For buyers in regions such as Africa and the Middle East, where renewable energy growth is accelerating, Chinese solar energy equipment suppliers remain the backbone of progress.

backbone of progress.

The Role of DC Protection Devices in Solar Projects

One of the overlooked but critical aspects of solar systems lies in safety and efficiency. Equipment such as the DC circuit breaker, DC surge protection device (SPD), and DC fuse plays a vital role in protecting solar installations from electrical faults, overloads, and lightning strikes.

European solar leaders emphasize manufacturing entire value chains locally, and protection devices are a key part of that. Without them, systems are vulnerable to costly downtime and safety hazards.

Combiner Boxes and Their Importance in Solar Installations

A caja combinadora is central to efficient solar power generation. It gathers energy from multiple solar strings and channels it into a single output, reducing complexity and improving system monitoring. In utility-scale solar farms, combiner boxes are essential for managing performance and safety.

The European industry recognizes the importance of manufacturing not only modules but also these critical components domestically. However, with many factories closing, procurement teams across Africa, Asia, and Latin America turn to solar energy equipment suppliers in China for reliable combiner boxes that meet strict quality and safety standards.

Europe’s Challenges, Global Opportunities

The message from European solar leaders is clear: without urgent political and financial backing, Europe’s solar manufacturing sector could collapse. While the EU debates stronger policies, the global demand for solar energy equipment continues to grow.

For now, international buyers cannot wait. They continue to depend on trusted global partners like USFULL, a solar energy equipment manufacturer in China, to deliver critical products such as DC circuit breakers, DC surge protection devices, combiner boxes, and DC fuses.

As Europe seeks sovereignty, global suppliers ensure that renewable energy projects remain on schedule and resilient. The transition to clean energy is a shared journey—and reliable manufacturing partners will define its success.