EU Adopts Net-Zero Industry Act to Boost Solar Manufacturing

On May 23, 2025, the European Commission adopted the Net-Zero Industry Act (NZIA) Secondary Legislation, outlining the framework for Member States to reward sustainability and resilience in renewable energy auctions. This legislation follows the introduction of the NZIA in June 2024 and consultations earlier in 2025. The implementation phase for Member States is set to begin in 2026. SolarPower Europe has expressed optimism about the legislation, with Deputy CEO Dries Acke highlighting its potential to boost local solar manufacturing by establishing a dedicated market for EU-produced solar products. This development aims to provide critical support amid challenges faced by the solar manufacturing sector within Europe.

Acke emphasized the urgency of implementing the Act effectively, particularly the resilience principles that would incentivize the production of solar panels in Europe. With the industry facing severe pressures, he stressed the importance of timely action as the first auctions under the Act are anticipated in 2026. Furthermore, SolarPower Europe advocates for the completion of a cohesive European industrial policy that would provide enhanced financing for clean technology projects, suggesting the establishment of a dedicated EU solar or clean tech manufacturing bank to support these initiatives. This comprehensive approach may be crucial for reinforcing the EU’s commitment to a sustainable and resilient solar industry.

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