European governments’ impending support for solar power manufacturers may be too late to prevent Meyer Burger, a solar panel maker, from relocating its production from Germany to the US, Reuters reported on Monday.
The Freiberg plant’s closure resulted in a loss of 500 jobs and a 10 per cent reduction in European solar panel production.
Despite a renewable energy boom in Europe, manufacturers are struggling against competition from China and the US, where governments provide more support.
Meyer Burger and battery company Freyr are shifting their focus to the US, attracted by subsidies and tax credits.
This situation presents a dilemma for European governments: either increase support for local production or allow imports to maintain the pace of installations.
The European Commission is set to launch a voluntary charter supporting solar manufacturing plants, but it lacks enforceability. EU parliament member Michael Bloss is advocating for a €200 million fund to purchase unused European-made solar panels, but this proposal has not been embraced.
Despite public support for a domestic solar industry, little action has been taken. The EU has previously provided substantial aid to Northvolt, a Swedish battery producer, to prevent it from moving to the US.
However, aid for ongoing operations is contentious, and decisions about supporting specific firms are left to member states. Potential customers, reliant on inexpensive Chinese imports, resist new subsidies for local panels, fearing they could disrupt their business.
