Solvis Plans New Location for 1.5 Gigawatt Annual Factory

Varaždin’s Solvis, the largest Croatian manufacturer of photovoltaic modules, continues to invest in increasing production capacity and is already preparing a new location for a factory with a capacity of over 1.5 gigawatts per year, which would be activated in the event of increased demand in the coming years. Currently, the company has a capacity of 300 megawatts per year, and by mid-2026, it plans to complete the installation of new equipment and double production to 600 megawatts.

According to Josip Lasić, CEO of Solvis, the investments are a response to the expected increase in demand that will follow after EU member states incorporate the Directive on the Energy Performance of Buildings into their legislation, which we recently reported on. This directive introduces the obligation to install solar systems on new public and commercial buildings, and by the end of the decade, also on residential buildings and parking lots.

– We expect the atmosphere in the EU to gradually change and it is becoming clear that domestic production of renewable energy equipment within the EU is necessary for a sustainable energy transition – emphasizes Lasić.

He adds that it is logical for the obligation to extend to parking lots as this way, space that would otherwise be inactive is utilized, becoming a source of clean energy – a solution already implemented by many EU member states.

Simplifying procedures and encouraging domestic industry

Solvis sees this directive not only as a regulatory framework but also as a business opportunity. The company expects an increase in demand for solar modules, especially when the obligation encompasses public and residential buildings.

– We view the directive as a business opportunity where Solvis can contribute with its production portfolio, knowledge, and experience, support it in achieving its goals, and open a new niche for the implementation of solar modules in Croatia, which would consequently increase demand for our products and services – says Lasić.

He emphasizes that it is currently difficult to assess how much demand will grow, but he believes that over time, solar modules will increasingly be integrated into the facades of buildings, making photovoltaic plants not just equipment for energy production but also part of the visual identity of the building.

However, to achieve these goals, it is essential to accelerate administrative procedures and align Croatian regulations with European ones.

– For the successful implementation of the directive, it is advisable and essential to adapt the Croatian legislative framework, simplify administrative procedures, and possibly provide certain incentives. If the legislative framework is not aligned with the EU directive, implementation will be hindered and ultimately will not contribute to the introduction of solar as a standard in construction. We hope for this alignment so that we do not find ourselves in a situation where buildings of the future are being constructed in other EU countries while Croatia struggles through a forest of permits, paperwork, and connection conditions – Lasić states.

The EU must protect its own production

Thanks to the Italian program Transizione 5.0, which exclusively encourages the use of solar modules produced in Europe, Solvis has increased its production capacity and secured a market this year. This Italian incentive program for companies promotes investments in technologies that reduce energy consumption and environmental impact, providing incentives through tax breaks. The secured and available funds for this program amount to 6.3 billion euros for the period from 2024 to 2025.

– We also hope for an EU provision on subsidizing EU modules in accordance with this directive, as is the case in Italy, where, following the Transizione 5.0 regulation, only solar modules produced in Europe are sought, and where an audit by a certification body serves as proof of production. Thanks to this regulation, Solvis has increased its production capacity this year and secured a market – says Lasić.

When it comes to market competition, he warns that competition from the east and “big players” – manufacturers who exceed annual installations in gigawatts – quickly recognize every opportunity. He predicts that by 2030, around 600 gigawatts of solar modules will be installed in the EU. However, if the Union does not protect itself from the import of cheaper Asian products, European manufacturers, he says, “due to unfair competition will not have the opportunity to apply even for projects funded by EU funds.”

Unequal race with Asia

– It is not really possible to compete with Asian manufacturers with production prices in the EU since the cost of materials for producing photovoltaic modules is higher than the selling prices of finished products from China. If we only look at production costs, with a high level of automation, the production cost in the EU is not much higher than the production cost in China – says Lasić.

However, material costs, customs duties on imported materials, disposal fees, and the lack of incentives create a significant difference in the cost structure of photovoltaic module production in the EU compared to China.

– Encouraging installations, but not promoting domestic production in the Union is probably not the best path to sustainability. Therefore, we appeal for consideration of a model that would enable development and investment in production within the EU – from raw materials to finished products – while also allowing for the achievement of set energy transition goals – he states.

As a positive example, he cites Italy and Austria, where users receive concrete benefits if they choose equipment produced in the EU. He also emphasizes the importance of greater state activity in the regulatory and legislative framework.

– If it is in the EU’s interest to implement the European Green Deal that will transform the Union into a competitive economy and stimulate it with green technology, then it must certainly design the implementation of reforms that will contribute to achieving that goal, which must certainly include the EU component, from raw materials to manufacturers and EU products. Ultimately, Croatia, like Italy, can engage in the mentioned regulatory and legislative framework by prescribing the obligation to install products produced in the EU (solar modules and other equipment) on buildings, ensuring financing instruments within the EU, and thereby encouraging and strengthening investments. By purchasing solar modules from third countries, for which there are no customs duties, we encourage competition, and as long as this situation does not change, Solvis and other manufacturers in the EU remain in an unenviable position – concludes Lasić.