Photovoltaic Manufacturing in the EU Requires a Unified Industrial Strategy

Thibault Deletombe and Karsten Neuhoff

DIW Weekly Report, 2026, vol. 16, issue 22/23, 177-183

Abstract: Solar photovoltaic (PV) electricity is critical for providing Europe with a steady supply of decarbonized energy at competitive prices. To ensure the supply of solar PV modules, the European Union (EU) aims to meet 40 percent of its demand with domestic products by 2030. To achieve this goal, EU Member States no longer need to base their support for PV projects solely on price under the NZIA, but can also link funding to non-price criteria such as energy efficiency or the carbon footprint. Furthermore, in the Industrial Accelerator Act, the European Commission also proposes specific Made-in-EU criteria for subsidized PV systems. Yet these non-price criteria can vary across EU Member States. This fragmentation is investigated with a model of the European solar PV module manufacturing sector. The harmonization of the criteria across Europe would harness the full potential of the common market by reducing costs and improving competition.

Keywords: Photovoltaics; solar modules; non-price criteria; renewable auction; market integration (search for similar items in EconPapers)
JEL-codes: L51 L52 L60 Q27 Q40 (search for similar items in EconPapers)
Date: 2026
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