44.6GW production capacity roadmap revealed! EU plans 30GW of local photovoltaic manufacturing
Sep 26, 2025
A study conducted by the Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) and commissioned by the trade body SolarPower Europe (SPE) concludes that the EU's target of 30 GW of annual solar panel manufacturing is technically and economically feasible. To achieve this goal, the EU and its member states need to "act quickly" and support it with a favorable policy and investment environment. The study highlights two key points in this regard: first, the establishment of an EU-level, output-based support program specifically for the solar manufacturing industry; and second, the effective implementation of the Net-Zero Industry Act (NZIA) policy package across all 27 member states, including, where possible, a "Made in EU" credit. The study notes that without these proposed interventions, the EU solar manufacturing industry will struggle to compete in the global market, "and the sector risks losing its remaining industrial and technological capabilities. Since scaling up production plants typically takes two to three years, the window for creating the necessary conditions for investors to establish plants in the EU by 2030 is limited." Walburga Hemetsberger, CEO of Solar Europe, said: "This new report highlights that with the right policies, Europe can achieve 30 GW of solar manufacturing capacity by 2030, creating thousands of local jobs and building a resilient, innovative solar supply chain that keeps economic value at home. To achieve the 2030 target, the EU and its member states must act quickly. Without intervention, Europe risks losing its remaining industrial and technological capabilities in the solar sector." The study notes that Europe currently has less than 10 GW of annual manufacturing capacity for wafers, cells, and modules, while China supplies between 81% and 93% of all photovoltaic modules across the entire PV supply chain to Europe. However, if announced or planned capacity by 2030 is included, this figure is much higher, as shown in the figure below. Even so, the EU still lags behind other regions in module production capacity, particularly the United States, India, and Southeast Asia. The study's analysis is based on three scenarios that meet the resilience criteria of the EU's Net Zero Industry Directive (which came into effect last year and aims to boost domestic renewable energy manufacturing). The first scenario involves establishing a fully vertically integrated supply chain in the EU (from polysilicon to modules, including solar glass and inverters); the second scenario involves sourcing more upstream raw materials—polysilicon, ingots, and wafers—from China, with the remainder produced in the EU; and the final scenario is similar, but with the production center located in Southeast Asia rather than the EU. The European Solar Energy Association estimates that a system produced entirely in the EU would cost approximately €0.128 per watt-peak (Wp) more than a system with mixed product...
More >