Solar Panel Manufacturing in European Union 2026: Industry Statistics & Trends

The solar panel manufacturing industry in the European Union encompasses the fabrication of upstream components like polysilicon, ingots, and wafers, as well as midstream solar cells and finished photovoltaic (PV) modules. Despite rapid deployment across Europe, with the EU surpassing an estimated 406 GW of cumulative installed PV capacity in 2025, domestic solar manufacturing has faced extreme structural challenges and contraction. According to 2025 energy data, EU module manufacturing capacity has contracted to approximately 10.8 GW, while cell manufacturing remains negligible and upstream wafer production has virtually vanished. The industry is currently trying to pivot toward high-effici

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What does the Solar Panel Manufacturing in European Union industry cover?

This industry involves the production of technologies that convert sunlight into electricity, spanning the entire photovoltaic value chain from raw silicon processing to completed solar panels. The scope covers the manufacturing of polysilicon, ingots, wafers, solar cells, and final assembled modules. It also extends to the production of specialized balance-of-system electrical components such as solar inverters and mounting structures.

• •Covers the processing of metallurgical grade silicon into solar-grade polysilicon.
• •Includes the slicing of silicon ingots into wafers and the chemical treatment to form PV cells.
• •Encompasses the final assembly and lamination of solar cells into protective glass-backed modules (solar panels).

Who operates in the industry and how is it structured?

The European solar panel manufacturing sector exhibits a highly imbalanced market structure. While the EU boasts substantial capacity in downstream deployment and operations, the physical manufacturing segment remains small and heavily reliant on foreign-sourced components. The supply chain is highly concentrated globally, with European operators representing a minor fraction of overall industrial output.

• •In 2024, the European Union imported €10.9 billion worth of solar panels, with China accounting for 98% of those imports.
• •European manufacturing capacity has experienced shutdowns, leaving EU module production capacity at only 10.8 GW in 2025.
• •Only a small percentage of European solar jobs are in direct manufacturing; as of 2022, manufacturing accounted for just 7.4% of total solar sector employment.

What drives demand in the industry?

The primary drivers for European solar panel manufacturing are legislative climate targets and a push for energy sovereignty. The EU's transition away from fossil fuels has spurred historic installation rates, generating a massive domestic market for PV products. However, local manufacturers struggle to capture this demand due to severe pricing pressures from cheaper foreign imports.

• •The cumulative installed solar capacity in the EU reached an estimated 406 GW in 2025, up from 338 GW in 2024.
• •Member states updated their National Energy and Climate Plans (NECPs) to collectively aim for over 600 GW of solar capacity by 2030.
• •The European Solar Charter, signed in April 2024, commits member states to promote high-quality, locally produced PV modules.

Who are the notable companies in the industry?

The European competitive landscape features a handful of regional manufacturers seeking specialized niches such as high-efficiency bifacial modules or premium aesthetic designs. Many traditional European manufacturers have scaled back domestic operations, relocated, or focused strictly on advanced technology research. To survive, operators rely on technological leadership in areas like heterojunction (HJT) and perovskite tandem cells.

• •Meyer Burger Technology AG is a Swiss-headquartered manufacturer that historically produced in Germany, though it restructured operations to focus heavily on US capacity expansions.
• •Enel Green Power (part of Enel SpA) is constructing the 3 GW TANGO (iTaliAN pv Giga factOry) facility in Catania, Italy, backed by over €110 million in EU Innovation Fund support.
• •SoliTek (under the BOD Group) manufactures glass-glass solar panels in Lithuania using 100% renewable energy.
• •Wacker Chemie AG remains a major global supplier of high-purity polysilicon, operating key production sites within Germany.

What are the recent trends and outlook?

A critical trend is the widening gap between surging local solar installation rates and contracting domestic manufacturing capabilities. Price drops of over 40% on imported solar modules in recent years have squeezed margins, pushing several local players into insolvency or forcing them to halt expansion plans. In response, European policymakers are shifting focus from basic volume targets to supply chain resilience and qualitative criteria.

• •The EU's export of solar panels decreased by 22% in value during 2024, dropping to €0.7 billion.
• •Several high-profile gigafactory projects planned across the EU were canceled or paused in 2024 and 2025 due to unfavorable market economics.
• •Industry bodies are focusing on the International Solar Manufacturing Initiative, launched in March 2025, to establish sustainable global supply structures.

How is the industry regulated?

The regulatory framework in the EU is increasingly geared toward shielding domestic clean-tech industries from unbalanced global competition. Compliance requirements are also being upgraded to push for circular economy standards, focusing on high recyclability and low carbon footprints. This regulatory shift aims to give European-made products a competitive edge in public procurements.

• •The Net-Zero Industry Act (NZIA) sets a benchmark target to meet 40% of the EU's clean technology deployment needs with domestic manufacturing capacity by 2030.
• •The European Solar PV Industry Alliance (ESIA) was established to help coordinate policy and de-risk the scaling of domestic solar production.
• •Ecodesign and Energy Labeling requirements are being formulated to enforce strict carbon footprint and sustainability thresholds on PV modules sold in the EU.

Government, statistical and trade sources used for this Claight analysis.

• Eurostat Extra-EU Trade in Green Energy Products 2024 ·
• European Commission DG Energy Focus on Solar Transition 2026 ·
• NACE Rev. 2.1 Statistical Classification (Eurostat 2025) ·
• European Solar PV Industry Alliance (ESIA) Working Group Status Report ·
• SolarPower Europe Solar Manufacturing Map and Insights