European Solar Panel Manufacturers Seek Help, Announce Plant Closures

European manufacturers of solar panels have requested urgent assistance from the European Union to preserve production amid cheap Chinese imports, as revealed in a letter seen by Reuters.

A group of European solar panel manufacturers has announced plant closures, pointing to a wave of imports and an oversupply of parts that have piled up in European warehouses, forcing them to lower prices.

Swiss company Meyer Burger plans to close its loss-making plant in Germany if it does not receive the promised assistance from the government.

In a letter to European Commission President Ursula von der Leyen, the ESMC association warned that European production capacities could be more than halved within weeks if the EU does not provide urgent help.

– In the next four to eight weeks, major manufacturers of photovoltaic modules in the EU and their European suppliers are preparing to shut down production lines if significant crisis measures are not taken immediately – the association warned in a letter dated January 30.

ESMC is asking the EU for a program to buy back excess stocks of solar modules to reduce the oversupply. They also demand changes to state aid regulations and stronger support from governments for domestic manufacturers.

If these measures cannot be implemented in the short term, the EU should also consider “protection” mechanisms, such as tariffs and quotas that would slow down imports, the association suggests.

Europe is rapidly turning to solar energy and installed a record 56 GW of new solar capacity for electricity generation last year.

Capacity expansion plays an important role in climate protection but heavily relies on imports of parts from China. Therefore, other sectors criticize the tariff proposal, warning that it could disrupt supplies from China and potentially hinder the introduction of green energy.