European solar industry calls for billion-dollar investment and smart collaboration

To make Europe less dependent on other parts of the world for the energy transition, Invest-NL, in collaboration with TKI Urban Energy and Roland Berger, has mapped out the costs and strategic challenges of a European solar industry. The report Solar Panel Manufacturing Cost Comparison demonstrates what is needed to establish a strong European foundation for the production of solar panels and to achieve strategic independence. The accompanying vision document highlights that smart investments, effective government policies, and European cooperation are essential to build a sustainable and competitive solar industry. This research is a follow-up to the earlier study on the opportunities for the solar industry in the Netherlands and Europe.

The report analyses the cost difference between the production of solar panels in Europe, China, and the United States. The results show that European production is currently more expensive, partly due to higher labour and energy costs. To achieve the European goals, this gap must be bridged. Through the Net Zero Industry Act, Europe emphasises a strong necessity to reduce dependence on Asian imports and to build a European ecosystem for sustainable energy technologies.

Smart investments

Europe has set a target that at least 40 percent of the technologies needed for the energy transition are produced within Europe. However, this requires significant investments and calls for a joint approach by government, industry, and financiers. Invest-NL sees an important role for blended finance — an approach where public and private resources are combined — to mobilise the necessary capital and bridge the period of “uncompetitive” production. The report estimates that bridging this gap with €27 billion could stimulate a multiple of private funds. This can cover the period during which European production remains relatively costly, thereby creating space for innovation and scaling-up.

European cooperation for strategic growth

With initiatives such as BatteryNL and SolarNL, the Netherlands has a strong position within Europe. To make a real impact, the focus must be on developing a robust European value chain. Through cooperation with countries like France, Spain, and Germany, the value chain is strengthened and we can respond more quickly to the global demand for innovative and sustainable technologies. Affordable batteries and solar panels are essential for achieving Europe's CO₂ reduction targets.

A joint vision for the energy transition

Invest-NL aims to accelerate the energy transition by making it financeable. Building a European solar energy manufacturing industry aligns closely with our mission to contribute to the energy transition and to strengthen our future earnings capabilities. At the same time, we recognise that developing a European solar industry involves many challenges. The report and vision document from Invest-NL and Roland Berger show that smart investments, innovative government policies, and international cooperation are needed to ensure a strategically autonomous, sustainable future for Europe.