Europe wants solar panels without forced labor. The only problem is that almost everyone comes from China

In the early 2000s, Europe was consecrated as The largest solar energy manufacturer worldwide. After more than two decades, that dominant position is a memory against the unstoppable advance of China, which has achieved that more than 80% of global production leaves its factories.

A paradigm shift. China has a very particular look of seeing the world in the long term, thanks to that philosophy he has managed to position himself as a leader in solar energy. His method has managed to manufacture cheapest solar panels thanks to a subsidy strategy, vertical integration and almost absolute control of supply chains, such as has detailed Bloombergnef. Meanwhile, European manufacturers have had to compete with those priceswhich has triggered a wave of factor closures, bankruptcies and personnel reductions.

Europe’s response. The old continent wants to make its own solar panels again, but motivated by an ethical and geopolitical pressure in the sector. According to Financial TimesThe scrutiny over the Xinjiang region, in China, has grown, which concentrates about 20 % of the world production of polysilicio and where various Western governments have denounced violations of human rights and forced labor against the Uigur population.

Faced with this, countries like the United Kingdom have taken a firm position. In April, the British Government declared that your state energy company may not use solar panels linked to forced labor. This ethical trend could force European solar developers to rethink their supply chain and prioritize more transparent suppliers, even if they are less competitive in price.

There are already measures underway. On the one hand, in a more ambitious attempt to recover part of its energy autonomy, the EU approved last year The Net Zero Industry Law. This regulation forces to consider not only the price, but also criteria such as the resilience of the supply chain, the environmental impact and the local origin by making public purchases of clean technologies.

On the other hand, European products will be prioritized in tenders to equip hospitals, public buildings and other state infrastructure with solar energy. According to Solar Power Europe for Financial Timesthis regulation could create a market of up to 9 gigawatts of solar capacity for “resilient” products already in 2026.

But the numbers do not lie. The distance with China is abysmal. Today, Chinese solar panels are sold at about $ 0.09 per watt, a radical decrease from the dollar per watt in 2012, According to Bloombergnef. European companies simply cannot compete in costs compared to the scale and efficiency of the Chinese model.

There is something more background. Not only is it a matter of assembly, but strategic minerals. In a broader context, starting a mine can take up to 17 years since it is activated all protocols. Instead, China has been assuring its sources of lithium, rare earths, copper and silicon for 20 years.

In this way, even with the new EU regulations working perfectly, the so -called “resilience market” would cover less than 14 % of the solar capacity added in Europe, According to Financial Times. And there would be no guarantees that these panels be produced by European manufacturers: they could come from India, South Korea or other countries that do not use materials of Chinese origin.

Will it go through the hoop? Here the main question that arises is: Is Europe ready to assume the political economic cost of reindustrializing its solar sector? Or will it accept the dependence of a cheap but geopolitically complex supplier? For now, the measures seem insufficient to significantly alter the structure of the market. The European energy transition progresses, but does it mounted on Chinese panelseven when their governments promote technological and ethical sovereignty speeches in commerce. Europe has aroused a race that she helped to start. Recovering the lost terrain will be difficult. The sun does not expect, and China already closed the umbrella.

Image | Climate Group

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