The European Commission has unveiled the “Industrial Accelerator Act” (IAA), introducing “Made in EU” standards for strategic sectors to combat unfair global competition and reduce reliance on external suppliers. While the policy mandates the use of European-made solar cells and inverters in public auctions, it has received a mixed reception. Industry advocates are divided between those who see it as a pragmatic step toward reshoring and critics who argue that the narrow focus and delayed implementation timeline leave the broader solar supply chain vulnerable.
The newly adopted IAA aims to fortify the continent’s industrial foundation by establishing local content requirements for public procurement and government support programs. According to the Commission, the act is a defensive measure against growing dependencies on non-EU suppliers, particularly in strategic sectors where global competition is deemed unfair. For the renewable energy industry, this specifically addresses the current dominance of Chinese manufacturers in the global solar and energy storage supply chains.
The legislation identifies solar cells and inverters as the primary strategic components. Under the current proposal, public auctions and subsidy programs for solar projects must utilize cells and inverters manufactured within the EU starting three years after the act takes effect. Notably, the “Made in EU” designation extends beyond the 27 member states to include international trading partners with existing free trade agreements or customs unions. This provision includes several non-EU European nations and India, the latter of which has rapidly expanded its own solar cell and solar module production capacity.
SolarPower Europe, the region’s primary solar lobby, described the proposal as a watershed moment for European industrial policy. Dries Acke, the group’s Deputy CEO, suggested that by focusing on solar cells and inverters, the Commission has found a middle ground that encourages domestic production without compromising the pace of affordable solar deployment. However, the group expressed concern regarding the battery energy storage requirements, which they believe are too stringent and are being introduced prematurely.
In contrast, the European Solar Manufacturing Council (ESMC) expressed deep disappointment, arguing that the act’s scope is far too narrow. The ESMC pointed out that by targeting only two out of eight essential components in a solar installation, the policy fails to protect the entire PV supply chain. The group also criticized the implementation timeline, noting that the three-year grace period means the requirements may not fully materialize until 2030, which they claim further weakens the initiative’s impact.
Christoph Podewils, secretary general of the ESMC, warned that the goal of achieving energy independence is slipping away due to what he described as a “watering-down” of the legislation. He emphasized that recent volatility in energy markets underscores the urgent need for a self-sufficient European supply chain to ensure long-term security. The focus on just two components marks a significant departure from previous EU ambitions to establish 30GW of integrated manufacturing capacity across the entire value chain, including upstream ingot and wafer production.
While Europe currently possesses significant inverter manufacturing capacity, its solar cell production remains minimal. New projects are beginning to surface, such as the Holosolis module plant in France and a planned 10GW facility in Spain, but these will rely heavily on the availability of local components to meet the new criteria. Moving forward, industry leaders are calling for the legislation to be simplified to ensure it can be implemented across the Single Market without creating prohibitive administrative hurdles.