SOLARPOWER EUROPE
EU industrial policy roll-out too slow to revive European solar PV manufacturing, new SolarPower Europe report finds

The implementation of the Net Zero Industry Act (NZIA) is happening too slowly and unequally, a new study by SolarPower Europe has found.

The NZIA aims to encourage European solar manufacturing by creating demand in public procurement, parts of renewable energy auctions, and support schemes for products from resilient' - non-dominant - sources. The intention is to help drive demand for solar equipment from other markets with a proportion of auctioned capacity subject to these conditions, as part of a wider suite of industrial policy tools.

However, implementation has been slow, even though Member States had to implement the provisions from 1 January 2026. The report identifies implementation in only six Member States so far. They are applying the rules differently, with some applications being stricter than the SolarPower Europe recommendation, which serves as the benchmark in the study. Other nations are stopping short of it.

In either case, the variance seen in early implementation creates additional complexity for market participants, at a time when the deployment of renewables must be accelerated.

Anett Ludwig, Head of Supply Chains, SolarPower Europe: "We see development in the right direction, but implementation is too slow. That itself is a concern, but more serious is the patchwork approach taken by Member States.

"The NZIA will be complemented soon by the Industrial Accelerator Act. We look forward to those negotiations moving forward with strict Made in EU' requirements introduced."

Dries Acke, Deputy CEO, SolarPower Europe: "The NZIA gives Member States a tool to harness the power of the Single Market. This report shows that much of that potential remains underutilised. The Commission must ensure the NZIA can be implemented easily and consistently.

"To create a prosperous future for European solar manufacturing these demand-side measures alone are not enough. We need financing support, too; a Cleantech Manufacturing Bank under the European Competitiveness Fund, with production-linked financial support. This is essential for any credible industrial policy."

The report reveals the variety of the initial approaches taken for solar PV. The report also looks at early Made in EU' criteria. The NZIA legislation focusses on resilience' criteria, sourcing from non-dominant sources of supply and stopped short of Made in EU' rules, which are currently under negotiation as part of the Industrial Accelerator Act (IAA).

However, Austria has already introduced a 20% Made in Europe' bonus. Several Italian support schemes have taken a different approach, introducing Made in EU' eligibility criteria. Any application of Made in EU' rules pre-empts the IAA.

The lack of progress means an assessment of the impact is not possible. It is already apparent that success will require a more consistent and balanced implementation so that industrial policy can leverage the potential of the full EU Single Market. This is also important for the upcoming Industrial Accelerator Act, currently in negotiation, which is expected to strengthen the NZIA framework. SolarPower Europe supports the use of strict Made in EU' criteria that do not extend beyond the EU, EEA, Switzerland and the UK.

In addition to those strict criteria and the development of a Cleantech Manufacturing Bank, SolarPower Europe is also calling for the Commission to establish a repository of national NZIA measures, to support a harmonised approach to NZIA implementation.

SolarPower Europe will continue to monitor the national approaches to implementation. The Industrial Policy for Solar PV National Implementation and Progress Report is available here. SolarPower Europe members can also access this report and subsequent updates to this research via our Market and Policy Navigator tool.

Notes 

• The Net-Zero Industry Act: The European Commission adopted the Net-Zero Industry Act (NZIA) Secondary Legislation on 23 May 2025, establishing the rules for Member States on how to incorporate non-price criteria into renewable energy auctions. This follows the adoption of the Net-Zero Industry Act in June 2024. It is now up to the Member States to implement these provisions as of 2026. The NZIA offers a historic opportunity to reshore clean tech manufacturing in Europe. But its success depends on how Member States implement the non-price criteria in renewable energy auctions. As per the law, Member States are to apply non-price criteria (NPCs) to at least 30% of the auctioned volume per year, or 6 GW annually. These NPCs should account for 15% to 30% of the overall evaluation criteria, with some flexibility allowed in cases where associated costs exceed 15%. Resilience under Art. 26 NZIA is defined as not from the dominant source of supply. 
• The Net-Zero Industry Act Implementing Act: The Implementing Act of Article 26 of the NZIA further specifies the rules for EU country auctions to deploy renewable energy sources, including certain non-price criteria that must be applied to 30% of auction volumes (or 6 GW per EU country) from January 2026 onwards. It was adopted on 23 May 2025.