Solar industry leaders gathered in Madrid on Thursday to caution about the obstacles hindering Europe’s ambitions to expand its green technology sector. High energy costs and supply chain disruptions are among the formidable challenges, delegates emphasized at an event hosted by Spanish industry group Foro Solar.

Representatives from Trina Solar, a major Chinese solar energy firm, expressed skepticism about the feasibility of manufacturing in Europe. 

“Europe isn’t profitable,” said Gonzalo de la Vina, President for Europe, Middle East, and Africa region at Trina Solar. He revealed the company’s plans to invest over $200 million in building a solar photovoltaic manufacturing facility in Texas, marking its first venture in the Western Hemisphere.

Christopher Atassi of Gonvarri Solar Steel underscored the price disparity between European and Chinese products, citing higher energy and labor costs in Europe. He stressed the necessity for incentives to stimulate demand for European products, asserting that without such demand, planning investments becomes challenging.

Rystad Energy, an energy research firm, highlighted that solar panels made in China cost significantly less than those manufactured in Europe, attributing the difference to various factors including energy and labor expenses and less competitive supply chains.

With more than 90% of its ingots and wafers for solar panels sourced from China, the European Union is contemplating tougher action on imports to reduce dependence on Chinese products. Spain’s acting Energy Minister Teresa Ribera hinted at the possibility of imposing tariffs on solar power generation materials.

While attention often turns to China, speakers at the event noted that Europe also needs to catch up with the United States, citing the competitive edge gained through the US Inflation Reduction Act. The need for a strategic push to revitalize Europe’s solar panel industry was emphasized, with concerns raised about the difficulty of creating it “from scratch.”

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