The EU passed the “Net Zero Industry Act” on May 27th, which not only signifies a solid step forward in Europe’s efforts to combat climate change and promote the green transformation of industry, but also has a profound impact on the local photovoltaic manufacturing industry. According to the plan outlined in the act, by 2030, the EU will achieve at least 40% of its photovoltaic manufacturing capacity in order to meet the growing demand for clean energy and to reduce over-reliance on external supply chains.

The Net Zero Industry Act is a key part of the EU’s Green Deal industrial plan, aiming to ensure that by 2030, at least 40% of the EU’s demand for clean technologies, including wind turbines, batteries, heat pumps, solar panels, and renewable hydrogen, is manufactured within Europe. The act will improve the conditions for investing in net-zero technologies by enhancing information, reducing the administrative burden of establishing projects, and simplifying the licensing process. To promote the diversification of net-zero emission technology supplies, the act requires public authorities to consider the sustainability and resilience criteria of net-zero emission technologies in public procurement or auctions.

In fact, current data shows that the EU’s domestic production of solar panels accounts for only 3% of the market, with a significant reliance on imports from China for its photovoltaic installations. The latest customs data shows that in March, China exported approximately 24.5GW of photovoltaic modules, with the top three global markets importing Chinese photovoltaic modules being Europe, Pakistan, and Saudi Arabia, accounting for about 60% of the global market. Among them, the European market imported about 9.7GW of photovoltaic modules from China, a 21% increase from February’s 8GW.

In response, the EU requires that 85% of the components used in wind farms, 60% of heat pumps, 85% of photovoltaic cells, and 85% of electrolyzers must be produced on the European continent. The market believes that this news will limit the export of new energy products from China.

Attracting Investment in Photovoltaic Manufacturing In addition to technological innovation, government support and incentive policies also play a crucial role. The EU will actively attract more companies to invest in the photovoltaic manufacturing industry by offering tax incentives, subsidies, and preferential loans. These policies will not only contribute to the rapid development of the photovoltaic industry but also create a significant number of high-quality jobs in Europe, further enhancing energy security.

Ensuring Stable Supply of Raw Materials In the process of achieving local photovoltaic manufacturing goals, strengthening cooperation along the industrial chain is also indispensable. The EU is actively seeking close cooperation with upstream and downstream companies in the global photovoltaic industry chain to ensure a stable supply of key raw materials and enhance competitiveness through optimizing the entire industry chain. This mode of cooperation will help the long-term development of the European photovoltaic industry and demonstrate stronger capabilities in the global market.

Bright Prospects for Photovoltaic Products With the continuous growth of global demand for clean energy, the market prospects for photovoltaic products are increasingly broad. By increasing its local photovoltaic manufacturing capacity, the EU can not only better meet the needs of its internal market but also gain a more advantageous competitive position in the global clean energy market.

In summary, the passage of the Net Zero Industry Act has brought new development opportunities to the European photovoltaic manufacturing industry. Driven by technological innovation, government support, industrial chain cooperation, and market demand, the EU is steadily moving towards achieving its goal of at least 40% photovoltaic manufacturing capacity by 2030, which will undoubtedly inject strong momentum into Europe’s clean energy transformation.

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