EU solar production costs 14.5% more than China’s, risking its 2030 manufacturing goal without urgent policy action.

European solar module production costs €0.103/W more than in China, leading to a 14.5% higher levelized cost of electricity, within the EU’s 15% cap under the Net Zero Industry Act. A report by SolarPower Europe and Fraunhofer ISE says targeted policies—like an EU-wide output-based support scheme—could narrow the gap to under 10%, helping Europe reach its 2030 goal of 30 GW annual manufacturing capacity. This would require six to ten new factories and annual funding of €1.4 billion to €5.2 billion, with potential macroeconomic returns. Without swift action, the EU risks losing its solar manufacturing base, as current capacity is below 10 GW and imports dominate, mainly from China. The study urges policy support, public procurement preferences for EU-made modules, and stronger transatlantic collaboration, especially as U.S. solar manufacturing expands amid policy clarity and growing investment.