The European Union’s goal of reducing energy dependence as part of its green transition faces a significant hurdle: its reliance on China for solar panels. According to data from Eurostat, a staggering 98% of solar panels imported into the EU in 2023 came from China, the world’s most populous country.
In monetary terms, the EU imported €19.7 billion worth of solar panels from China in 2023. Although this represents a decrease from the €22.6 billion imported in 2022, the number of panels imported actually increased by 5%, demonstrating continued growth in the EU's demand for solar energy infrastructure.
Back in 2018, China exported just under €4 billion worth of solar panels to the EU, but that figure had more than doubled to €9 billion by 2021. The rapid growth in imports from China coincided with the EU’s decision to lift tariffs on Chinese solar panels in 2018, which had been in place since 2013. This policy change paved the way for a flood of cheaper panels into the European market.
One of the main reasons behind the EU’s reliance on Chinese solar panels is cost. According to the International Energy Agency (IEA), the production costs of solar PV panels in China are between 35% and 65% lower than in the EU. Manufacturing integrated cells and modules within the EU is estimated to be 70% to 105% more expensive than in China, largely due to higher capital expenditure (CapEx) and operational costs. The IEA reports that CapEx for solar production is three times higher in the EU than in China, further driving the EU's dependency on imports.
While the EU remains a net importer of solar panels, it did export €0.9 billion worth of solar panels in 2023, primarily to Switzerland and the UK, with smaller amounts going to countries like Serbia and North Macedonia. The EU's solar panel exports increased by 19% in value and 37% in volume during the year.
In addition to solar panels, the EU is experiencing growth in the wind turbine sector. Exports of wind turbines saw the highest value growth in 2023, increasing by 49%, while the volume of exports rose by 26%. On the import side, however, the EU primarily sources wind turbines from India (59%) and China (29%).
Despite the availability of cheaper solar panels and supportive EU legislative frameworks, obstacles remain, particularly in the limited access to electricity grids for new solar installations. As the EU continues its green transition, finding ways to reduce its reliance on non-European imports will be crucial to achieving energy independence.
