This paper outlines SolarPower Europe's recommendations for upcoming EU initiatives, in particular the Clean Industrial Deal.
Boosting EU competitiveness with solar PV
Electrification and flexibility will significantly lower the total energy system costs, which are ultimately borne by the EU’s citizens and businesses. However, getting to such a low-cost, decarbonised energy systems requires continuous adjustments.
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The EU Competitiveness Compass highlights the key drivers for Europe’s long-term economic strength, including energy security, industrial resilience, and sustainability. Affordable, clean energy is at the heart of this strategy, as high electricity costs put European industries at a disadvantage compared to global competitors. By ensuring a reliable, cost-effective, and decarbonised energy system, the EU can maintain its competitive edge, attract investment, and strengthen supply chains.
Solar PV plays a critical role in this transition. With the right policies, Europe can accelerate solar deployment, lower energy costs, and support a thriving clean industry.
To achieve this, the EU must focus on:
Secure a long-term framework for renewables
- Ensure a stable market design by swiftly implementing electricity market reforms.
- Set up guarantee schemes to support long-term renewable contracts.
- Align electricity taxation with fossil fuel levels to close the cost gap.
Direct aid to end-users
- Support electrification via fast-track financing, CCfDs, and an Electrification Bank.
- Ensure aid reduces network costs without distorting electricity prices.
- Prevent indirect subsidies for fossil fuel-based electricity.
Lower grid costs by strengthening flexibility
- Harmonise grid tariff methodologies to facilitate cross-border operations.
- Strengthen time-of-use pricing to incentivise demand-side flexibility.
- Reduce costs for generators by limiting grid connection fees.
Accelerate grid access for renewables
- Standardise and simplify grid connection processes across Member States.
- Improve grid capacity transparency with real-time hosting maps.
- Implement Renewable Energy Directive III provisions to streamline permitting.
Promote additional revenues across society via solar PV
- Maintain Member States’ right to support rooftop PV grid injections.
- Develop public tender platforms for rooftop solar projects.
- Accelerate permitting for large-scale rooftop PV installations.
- Support agrisolar by integrating it into the Common Agricultural Policy (CAP).
Facilitate solar PV project development worldwide
- Strengthen financial support through Export Credit Agencies (ECAs) and Development Finance Institutions (DFIs).
- Enhance risk mitigation tools for European developers in emerging markets.
Push policies: financial support for building facilities
- Extend state aid under the Temporary Crisis and Transition Framework (TCTF).
- Increase European Investment Bank (EIB) funding for solar manufacturing.
- Create a dedicated Solar Manufacturing Facility under the Innovation Fund.
- Launch an Important Project of Common European Interest (IPCEI) on smart and secure electrification for inverters.
Pull policies: creating demand for sustainable solar products
- Implement resilience criteria in public procurement and auctions.
- Strengthen EU financial tools to boost global competitiveness of European solar manufacturers.
Set market access standards that reflect EU ESG values
- Align solar products with EU sustainability rules and ESG standards.
- Ensure clear implementation guidelines for Eco-design, Energy Labelling, and Forced Labour Regulation compliance.
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