The European solar energy sector issued a warning on Monday regarding the increasingly precarious situation faced by European solar photovoltaic (PV) manufacturers, given the historically low prices for solar PV. SolarPower Europe, an industry trade group, expressed its concerns in a letter addressed to the European Commission, emphasizing the potential for bankruptcies among European companies. Such bankruptcies, they argued, would undermine the EU’s objective of reshoring 30 GW of the solar PV supply chain.
SolarPower reported that PV module prices have declined by over 25% since the beginning of the year, a trend that poses a concrete risk of insolvency for companies due to the necessary devaluation of their substantial inventory.
This drop in prices can be attributed to a combination of factors, including robust demand, significant investments, and intense competition among Chinese suppliers, resulting in market overcapacity and subsequent price reductions.
To address these challenges, the industry is calling upon the European Commission to purchase the stockpiles of solar modules held by European companies, establish a European-level Solar Manufacturing Bank, and implement measures to stimulate demand for solar PV within Europe, among other recommendations.