The impact of favorable competition from China on the European solar industry and the controversial opinions within the industry.

The impact of favorable competition from China on the European solar industry and the controversial opinions within the industry.

According to a report by www.fr.de, Europe's solar companies are affected differently by the favorable competition from China. While manufacturers suffer, sellers benefit. That causes arguments. The European photovoltaics industry is currently struggling to deal with overwhelming competition from China. Since the summer, the prices for solar systems have quickly fallen to a record low due to an oversupply from the People's Republic. Some politicians and companies are therefore calling for trade restrictions against China. But large parts of the industry think this is a bad idea.

The effects of oversupply from China on the European market are manifold. The falling prices can be beneficial for solar system sellers and installers because they have low-cost suppliers and can pass on lower prices to their customers. However, European manufacturers are suffering from the price war and are calling for trade restrictions to protect themselves against cheap competition.

The European Union is facing a conflict of objectives because, on the one hand, it is striving for strategic independence by rebuilding its own solar sector, but on the other hand it needs a rapid and cost-effective expansion of photovoltaics, which would only be possible including Chinese solar modules. The solar industry estimates that 84 percent of jobs in this sector in Europe are in the sale and installation of solar systems. The introduction of punitive tariffs threatens massive job cuts and losses for the industry.

Financial aid from Brussels is being demanded by EU solar companies in order to strengthen the resilience of the solar sector and support European production. There are also calls for EU state aid rules to be adjusted so that member states can support factory operating costs. A new financing instrument at EU level to support solar production projects in Europe is also called for.

The EU Commission is faced with the challenge of combining the goals of sustainable photovoltaic expansion and strong European production. It remains to be seen how the EU will respond to the solar companies' demands and what measures will be taken to strengthen the European solar sector.