Solar PV in a Strengthened Single Market
Harmonise national spatial planning. Build a true Energy Union and Union of Skills. Cross-border movement of goods and private financing.
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As showcased in our most recent EU Market Outlook, solar photovoltaic has grown tremendously in the past four years. However, after three boom years featuring growth numbers from 40 to 55%, 2024 was a slowdown to 4%. The sector is also at risk of not reaching its 30 GW target for EU manufacturing capacity.
A more harmonised spatial planning, as well as an easier movement of electrons, people, goods and capital, will alleviate numerous remaining barriers to the deployment of solar PV and flexibility solutions. More solar modules, smart inverters, electric vehicles, heat pumps, battery systems and other such devices will bring about a more competitive, flexible and reliable energy system, as found in our report: Mission Solar 2040 - SolarPower Europe.
The new strategy for the EU single market must address key remaining barriers to the development of solar PV manufacturing and deployment, including: the patchwork of implementation of EU rules, the slow energy market integration and the difficulties for crossborder movement of workers.
Our recommendations include:
Harmonise national spatial planning rules
There are still many Member States lagging behind with transposing and appropriately applying the EU Renewable Energy Directive planning and permitting rules on a national level. The European Commission and Member States should work on a timely, full and unbureaucratic transposition of these rules. This should include:
- Modernisation and digitalisation of permitting processes.
- Maximising the potential of artificial surfaces.
- Improve spatial planning
- Introducing Overriding Public Interest
- Setting clear deadlines for permitting procedures
- Avoiding retroactive changes to the law
Better movement of electrons
The EU must prioritise establishing a unified energy market to support the integration of renewables, system electrification and flexibility. While transmission grids are modernised, greater effort is needed to strengthen interconnections.
- Need for investments in the grid
- Network planning must be in line with 2030 and 2050 objectives.
- Streamline the permitting process for essential grid infrastructure
- Harmonise grid connection procedures.
- TSOs and DSOs should align on new universally
recognised standards - Flexible Connection Agreements
- Permitting procedures for hybrid renewable assets
- EU must develop and mandate an interoperability standard for Inverters, heat pumps, EV chargers, and batteries.
- Harmonised approach to ensure curtailment is compensated under new support schemes
- Facilitate cross-border PPAs
- Market-based procurement
- Harmonisation and simplification of technical requirements and prequalification procedures for balancing markets.
- Increase visibility over auctions
- Harmonised fiscal incentives for electrification
Better movement of people
Member States must:
- Multiply efforts in identifying the gaps in their workforce and skillsets.
- Identify the various solar jobs in demand and develop a framework for the skills and competencies
required for those roles. - Boost the visibility and attractiveness of technical, scientific, and engineering renewable careers.
- Collaborate on joint electrician/PV professional
certification. - Involve sectors in transition, clean tech, unions and authorities in developing sector agreements.
- Work with the European Commission on creating a cross clean tech career path.
At EU level, we should:
- Launch a European Grid Academy.
- Harmonise rooftop PV permitting, grid connection, and compensation procedures.
Better movement of goods
Our recommendations included:
1. Harmonised Product Regulation
- Standardise product information for better performance, reliability, and circularity.
- Finalise PV Ecodesign & Energy Label rules for clear sustainability metrics.
- Revise the WEEE framework to harmonise end-of-life rules for solar PV.
- Ensure transparent non-price criteria in auctions to support sustainable supply chains.
- Adopt a “quality over quantity” approach to minimise bureaucracy.
2. Coherent Reporting Obligations
- Align solar products with EU ESG standards to meet sustainability expectations.
- Provide clarity on PV Ecodesign, Energy Labelling, FLR, and CSDDD implementation.
- Recognise industry schemes (SSI) as compliance tools.
- Harmonise customs rules for easier compliance.
3. A Single Market for Grid-Connected Devices
- Remove market entry barriers for flexibility service providers.
- Harmonise grid connection procedures to streamline approvals.
- Implement digital grid connection platforms for real-time tracking.
- Standardise BESS fire safety rules under the Battery Regulation.
4. Interoperability for Flexibility Devices
- Strengthen DRIR for unified interoperability across Member States.
- Mandate harmonised communication protocols to lower costs.
- Standardise data exchange & grid signal communication via EU-wide APIs.
- Adopt IEEE 2030.5 protocol for seamless integration across Europe.
Better movement of capital
The EU must direct capital towards clean technologies by aligning financial policies with decarbonisation goals and removing barriers to green investment.
The EU should also:
- Support green monetary policies
- Empower the EIB to de-risk renewable projects and lower financing costs.
- Fully implement the EU Taxonomy and CSRD for clear sustainability criteria.
- Launch an IPCEI on smart electrification to secure EU leadership in inverter technology.
- Secure strong funding in the next Multiannual Financial Framework (2028-2034).
- Leverage EU funding tools like the European Hydrogen Bank and "Auction as a Service."
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