Brussels, 28 October 2026. China dominates almost the entire solar PV value chain and accounted for more than 95% of the EU’s solar panel imports by value in 2024. This extreme dependence threatens Europe’s energy security and undermines its ambition to rebuild a competitive European solar manufacturing industry.
“Europe cannot diversify its solar supply chains as long as heavily subsidised Chinese imports are allowed to undermine both European manufacturers and alternative suppliers. Fair competition is not an optional extra – it is a prerequisite for diversification,” says Christoph Podewils, Secretary General of ESMC.
Chinese solar panels sold below sustainable production costs
ESMC highlights the scale of unfair competition. According to recent price assessments, Chinese TOPCon solar modules are sold in Europe for 10.9 euro cents/Wp, while a Fraunhofer ISE/SolarPower Europe study estimates that Chinese manufacturers need at least 15.9 euro cents/Wp to cover production, shipping and a reasonable profit. This means Chinese modules are sold in Europe 31% below their estimated sustainable price, equivalent to a dumping margin of 46%. The price gap has persisted since August 2024.
No European manufacturer can compete against prices that do not even cover Chinese production costs. ESMC therefore calls for immediate use of existing EU trade defence instruments, alongside the development of new tools that allow the Commission to intervene before European manufacturing capacity is irreversibly lost.
Europe has the capacity and investment plans
Europe already has companies, technologies and investment plans across the entire solar value chain – from quartz, polysilicon, ingots and wafers to cells, modules, inverters and production equipment. A European PV value chain producing 30 GW annually could support 80,000 jobs and add €4 billion a year to EU GDP. However, these investments require a predictable market, fair competition and adequate financial support.
Recommendations for Diversify EU
In the submission, ESMC puts forward the following recommendations among others:
“Europe has the technology, the companies and the investment plans. What we need now is a European policy framework that turns these plans into factories, jobs and greater energy security,” says Christoph Podewils.
ESMC urges the Commission to ensure that Diversify EU combines import diversification with effective market protection and the rebuilding of Europe’s solar manufacturing value chain.
Read the full feedback here: https://esmc.solar/download/180/feedbacks/9044/esmc-feedback-on-diversify-eu.pdf
The European Solar Manufacturing Council (ESMC) promotes solar manufacturing Made in Europe, the creation of a political environment to support industrial manufacturing and research while maintaining it at the top level globally. It promotes the development and investment in solar technology along the whole value chain (i.e. production equipment, materials, wafer, cells, modules, inverters, storage and other electronic components) to assist high level system integration as well as production of equipment in Europe.
The ESMC represents around 70 companies and research organisations from all parts of the value chain. It is an international non-profit organisation registered under Belgian law.
Christoph Podewils, Secretary General ESMC
[email protected]
+49 177 8741214
Brussels, 28 October 2026. China dominates almost the entire solar PV value chain and accounted for more than 95% of the EU’s solar panel imports by value in 2024. This extreme dependence threatens Europe’s energy security and undermines its ambition to rebuild a competitive European solar manufacturing industry.
“Europe cannot diversify its solar supply chains as long as heavily subsidised Chinese imports are allowed to undermine both European manufacturers and alternative suppliers. Fair competition is not an optional extra – it is a prerequisite for diversification,” says Christoph Podewils, Secretary General of ESMC.
Chinese solar panels sold below sustainable production costs
ESMC highlights the scale of unfair competition. According to recent price assessments, Chinese TOPCon solar modules are sold in Europe for 10.9 euro cents/Wp, while a Fraunhofer ISE/SolarPower Europe study estimates that Chinese manufacturers need at least 15.9 euro cents/Wp to cover production, shipping and a reasonable profit. This means Chinese modules are sold in Europe 31% below their estimated sustainable price, equivalent to a dumping margin of 46%. The price gap has persisted since August 2024.
No European manufacturer can compete against prices that do not even cover Chinese production costs. ESMC therefore calls for immediate use of existing EU trade defence instruments, alongside the development of new tools that allow the Commission to intervene before European manufacturing capacity is irreversibly lost.
Europe has the capacity and investment plans
Europe already has companies, technologies and investment plans across the entire solar value chain – from quartz, polysilicon, ingots and wafers to cells, modules, inverters and production equipment. A European PV value chain producing 30 GW annually could support 80,000 jobs and add €4 billion a year to EU GDP. However, these investments require a predictable market, fair competition and adequate financial support.
Recommendations for Diversify EU
In the submission, ESMC puts forward the following recommendations among others:
“Europe has the technology, the companies and the investment plans. What we need now is a European policy framework that turns these plans into factories, jobs and greater energy security,” says Christoph Podewils.
ESMC urges the Commission to ensure that Diversify EU combines import diversification with effective market protection and the rebuilding of Europe’s solar manufacturing value chain.
Read the full feedback here: https://esmc.solar/download/180/feedbacks/9044/esmc-feedback-on-diversify-eu.pdf
The European Solar Manufacturing Council (ESMC) promotes solar manufacturing Made in Europe, the creation of a political environment to support industrial manufacturing and research while maintaining it at the top level globally. It promotes the development and investment in solar technology along the whole value chain (i.e. production equipment, materials, wafer, cells, modules, inverters, storage and other electronic components) to assist high level system integration as well as production of equipment in Europe.
The ESMC represents around 70 companies and research organisations from all parts of the value chain. It is an international non-profit organisation registered under Belgian law.
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