Solar Valley Rises Again: German Industry's Rebirth
- Reestablishing the German solar industry a decade after bankruptcy, EU subsidy plans and Chinese dominance. With new plant openings and experienced staff, Europe seeks to reduce reliance and expand renewable energy capacity. Will it be enough to ward off the risk of failure?
The German solar industry is looking to reestablish itself a decade after a wave of bankruptcies nearly wiped it out. Swiss group Meyer Burger opened a solar cell plant in Bitterfeld-Wolfen in 2021 and is recruiting experienced staff from the sector. Chinese companies dominate the industry, and Europe is looking to reduce its reliance while expanding renewable energy capacity. The EU has proposed a subsidy plan, intended to help European businesses keep up with US funding for green industries, but it has yet to be approved. Despite the recent uptick, the sector faces many challenges, including international subsidy competition and overcapacity in China driving down prices. The risk of failure remains, as the August bankruptcy of Nordic group Norwegian Crystals shows.
How Can Europe Revive Its Solar Industry?
- Increase Government Support: European countries should increase their subsidies and incentives for solar energy in order to create a more competitive environment.
- Invest in Research and Development: Investing in research and development of new technology like solar panels and energy storage solutions is key for Europe to remain competitive in the global market.
- Create a More Competitive Environment: The EU should seek to reduce or eliminate barriers to foreign solar imports, such as tariffs and other restrictions, in order to create a more competitive environment.
- Support Local Manufacturing: European countries should provide tax incentives and other support programs for local solar manufacturers, such as Meyer Burger, to help them stay competitive.
- Encourage Solar Installations: Governments should offer incentives and other support programs to encourage more people to install solar panels.
- Invest in Education: Investing in public education programs about the benefits of solar energy could help increase adoption rates.
- Improve Grid Infrastructure: Governments should invest in grid infrastructure improvements, such as better electricity storage systems, to accommodate more solar energy.
