Solar glass tariffs will harm Europe’s photo voltaic business. This downside can simply be solved with out jeopardizing European photo voltaic glass manufacturing.
We are confronted with an absurd state of affairs. To defend the very small photo voltaic glass business in Europe, the EU Commission launched tariffs on photo voltaic glass imports a number of years in the past. These tariffs lead to European module producers being uncompetitive, though they’ll purchase very low-cost photo voltaic cells from China for his or her modules. Some module producers are in short-term work. Meyer Burger has shut down its module manufacturing, and several other thousand jobs are actually in danger.
Therefore, tariffs are dangerous. However, what’s the irrational response? To defend module producers, there are recurring concerns of introducing European-wide tariffs on Chinese module imports. A vicious cycle! This will jeopardize lots of of 1000’s of jobs within the European photo voltaic business to avoid wasting a number of hundred within the small photo voltaic glass business.
For now, the reintroduction of module tariffs has been prevented. Because tariffs on Chinese modules could be a catastrophe for Europe’s local weather safety, so the EU Commission has rightly hesitated to date. However, the state of affairs stays troublesome for European module producers.
Now there’s a easy means out of this tariff spiral: The Net-Zero Industry Act (NZIA). It prescribes stability and sustainability standards for sure tenders.
Germany’s visitors mild coalition lately determined within the context of consultations on the photo voltaic bundle that the NZIA needs to be carried out as quickly as doable. What does this imply? Before the German federal authorities can current a draft regulation, it should await the implementation of the work of the EU Commission, which is predicted on the finish of the 12 months. So the legislative course of will start within the first half of 2025. Entry into pressure is predicted within the second half of the 12 months. After this, the resilience tenders may also be given.
It may be assumed that photo voltaic glass may also be a part of the privileged worth chain in Europe in accordance with NZIA. This will guarantee the way forward for the very small manufacturing of photo voltaic glass in Europe, which might solely cowl a small a part of the European demand. Double insurance coverage by way of photo voltaic glass tariffs is now not vital. Tariffs on photo voltaic glass can and will subsequently be eradicated together with the introduction of stability tenders.
With the elimination of photo voltaic glass tariffs, the competitiveness of European module producers will enhance considerably; that is particularly relevant to glass-glass modules. Here, the tariff prices have a double impact.
In addition, European modules may also be ensured by tenders of future power. Module producers can’t solely produce cheaper with cheaper photo voltaic glass but additionally have the NZIA security internet. All discussions about tariffs on module imports needs to be off the desk now.
The roadmap is now clear. Now it is about ending the vicious cycle from the previous and eliminating the factitious enhance in prices for European producers. Thus, sustainability and local weather safety may be linked.
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