China floods EU market

Photovoltaic companies protest against punitive tariffs

(Bild: kanin - stock.adobe.com)

The current debate about possible punitive tariffs on Chinese solar modules has set alarm bells ringing in the European photovoltaic industry. Protectionist measures would further fuel energy cost inflation, disrupt supply chains and jeopardize jobs, warns the Solar Economy Europe alliance.

This is an association of numerous photovoltaic companies, most of which are based in Germany. They all warn against protectionism in general, without mentioning China by name in connection with the current discussion. However, the political reason is obvious: a large proportion of the solar modules installed in Europe are produced in China, and several European manufacturers have run into economic difficulties despite the ongoing solar boom.

(Bild: kanin - stock.adobe.com)

Chinese companies have cost advantages due to their much larger production capacities, and energy prices in Europe are considerably higher than in China. This is why the EU has been discussing possible punitive tariffs on Chinese modules for months.

Protectionism "threatens CO₂ savings targets"
"Growing protectionist tendencies" are threatening the European CO₂ reduction targets, according to the press release. The companies are in favor of free trade. The association refers to historical experience. The punitive tariffs imposed on solar components from China in 2012 and 2013 destroyed jobs in the European solar industry. In addition, the EU's tariffs led to a slump in newly installed solar modules, according to the statement.