EUROPEAN
COMMISSION

Brussels, 18.5.2022
COM(2022) 221 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEANPARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIALCOMMITTEE AND THE COMMITTEE OF THE REGIONSEU Solar Energy Strategy{SWD(2022) 148 final}

EN

EN

1.

SOLAR ENERGY TO REPOWER EUROPE

Massive, rapid deployment of renewable energy is at the core of the REPowerEU plan - theEU initiative to put an end to its dependency from Russian fossil fuels. Solar energy will be
the kingpin of this effort. Panel by panel, the infinite energy of the sun will help reduce ourdependence on fossil fuels across all sectors of our economy, from residential heating toindustrial processes.
As part of the REPowerEU plan, this strategy aims to bring online over 320 GW of solar
photovoltaic by 2025 (more than doubling compared to 2020) and almost 600 GW by 20301.
These frontloaded additional capacities displace the consumption of 9 bcm of natural gas
annually by 2027.
Solar energy has a number of advantages that make it particularly suitable to meet today’s
energy challenges.
Solar photovoltaics (PV) and solar thermal technologies can be rolled-out rapidly and reward
citizens and businesses with benefits for the climate and their purses.
This is because solar energy costs have decreased spectacularly over time. The EU’s
renewable energy policies helped bring PV costs down by 82% over the last decade2, turning
it into one of the most competitive source of electricity in the EU. Solar energy, combinedwith energy efficiency, protects European citizens from the volatility of fossil fuel prices.
EU citizens appreciate this autonomy to produce their own energy, either individually orcollectively. It is a huge opportunity for whole cities and regions, especially thosetransitioning to a new energy and economic model. The solar sector not only creates
renewable electricity and heat; it also creates jobs, new business models and start-ups.
Massive deployment of solar energy is also a chance to reinforce the EU’s industrial
leadership. By creating the right framework conditions, the EU can expand its manufacturingbase, building on its vibrant competitive and innovation-driven environment while ensuringthat solar products are up to the EU consumer’s high standards.
The EU Solar Energy Strategy outlines a comprehensive vision to swiftly reap the benefits ofsolar energy, and presents four initiatives to overcome the remaining challenges in the shortterm.
First, by promoting quick and massive PV deployment via the European Solar Rooftops
Initiative.
Second, by making permitting procedures shorter and simpler. The Commission willaddress this issue through the adoption of a legislative proposal, a recommendation and a
guidance alongside this communication.
Third, by ensuring the availability of an abundant skilled workforce to face up the challengeof producing and deploying solar energy all across the EU. In line with the call for
1
2

All values on electricity generation capacity refer to alternating current (AC).
See IRENA Data Centre
1

stakeholders to establish an EU large-scale skills partnership for onshore renewable energy
under the Pact for Skills, as part of the REPowerEU plan, this strategy will set out its
relevance for the solar energy sector3. This partnership will bring together all relevant
stakeholders to take action on upskilling and reskilling to fill the gap.
Fourth, by launching a European Solar PV Industry Alliance that aims to facilitate
innovation-led expansion of a resilient industrial solar value chain in the EU, in particular in
the PV manufacturing sector.

2.

ACCELERATING SOLAR ENERGY DEPLOYMENTSolar PV is one of the cheapest source of electricity available4. The cost of solar electricity
was already well below wholesale electricity prices before the 2021 surge in prices. Thisadvantage has become even more relevant now in the face of the crisis. Solar electricity andheat are key for phasing out EU’s dependence on Russian natural gas. Large-scale
deployment of PVs will reduce our reliance on natural gas used to produce power. Solar heatand solar power combined with heat pumps can replace natural gas boilers for heating inresidential or commercial spaces. Solar energy in the form of electricity, heat or hydrogen canreplace natural gas consumption in industrial processes.
By the end of 2020, the EU reached 136 GW of solar PV installed generation capacity, having
added more than 18 GW that year. It delivered around 5% of total EU electricity generation5.
To reach the 2030 target for renewables proposed by the Commission and the objectives of
the REPowerEU plan, we need to radically step up a gear. Over this decade, the EU willneed to install, on average, approximately 45 GW per year.
Solar energy systems have long been a low-cost and reliable solution for heating in many
European countries6 but overall solar heat accounts for just around 1.5% of heating needs7. To
reach the EU 2030 targets, energy demand covered by solar heat and geothermal shouldat least triple.
Rooftops have been the place for most of the solar energy deployment so far, but huge
untapped potential remains. It is a low-hanging fruit and the EU and its Member States mustjoin forces to exploit it rapidly as much as possible, given multiple benefits for consumers.

3

COM(2020) 274 final, 1 June 2020
Estimated at 24-42 EUR/MWh depending on the location within the EU in Eero Vartiainen, Gaëtan Masson,
Christian Breyer, David Moser, Eduardo Román Medina “Impact of weighted average cost of capital, capital
expenditure, and other parameters on future utility-scale PV levelised cost of electricity” – Estimated at 32-74
EUR/KWh depending on the location within the EU in Lugo-Laguna, D.; Arcos-Vargas, A.; Nuñez-Hernandez,
F. A European Assessment of the Solar Energy Cost: Key Factors and Optimal Technology. Sustainability 2021,
13, 3238. Estimated at an average of 60 USD/MWh in the EU according to IEA World Energy Outlook 2021.
Estimated at 75-131 USD/MWh across Italy, Spain, France and Germany according to IRENA Technical Report“Renewable Power Generation Costs 2020”.
5Eurostat6
Competitiveness of the heating and cooling industry and services - Publications Office of the EU (europa.eu)
7
Solar heat accounted for 38 GWth, primarily in the form of solar heating systems for domestic hot water inresidential homes, with 1.6 GWth added in 2019. Eurostat
42European Solar Rooftops Initiative
According to some estimates, rooftop PV could provide almost 25% of the EU’s electricity
consumption8 - this is more than the share of natural gas today. These installations – onresidential, public, commercial and industrial roofs – can shield consumers from high energy
prices, contributing to public acceptance of renewable energy. They can be deployed very
rapidly, as they utilise existing structures and avoid conflicts with other public goods like theenvironment.
The EU-wide European Solar Rooftops Initiative, announced in the Commission’s
REPowerEU Communication, aims at unlocking the vast, underutilised solar generation
potential of rooftops to make our energy cleaner, more secure and affordable. To achieve thisswiftly, immediate action is necessary by end 2022
The EU will:-

Increase its 2030 target for renewables share to 45%.

-

Limit the length of permitting for rooftop solar installations, including large ones,
to a maximum of 3 months.

-

Adopt provisions to ensure that all new buildings are “solar ready”.

-

Make the installation of rooftop solar energy compulsory for:o all new public and commercial buildings with useful floor area larger than 250
m2 by 2026;
o all existing public and commercial buildings with useful floor area larger than
250 m2 by 2027;
o all new residential buildings by 2029.

-

Ensure that its legislation is fully implemented in all Member States allowing
consumers in multi-apartment buildings to effectively exercise their right tocollective self-consumption, without undue costs9.

The EU and Member States will work together to:-

Eliminate administrative obstacles for cost-effective extensions of already installed

8

Bódis, K., Kougias, I., Jäger-Waldau, A., Taylor, N., Szabó, S.: A high-resolution geospatial assessment of therooftop solar photovoltaic potential in the European Union (2019) Renewable and Sustainable Energy Reviews,
114, art. no. 109309
9 Both the Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the
promotion of the use of energy from renewable sources and the Directive (EU) 2019/944 of the European
Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity containprovisions on collective self-consumption.
3

systems.
-

Set up at least one renewables-based energy community in every municipality witha population higher than 10 000 by 2025.

-

Ensure that energy poor and vulnerable consumers have access to solar energy,
e.g. through social housing installations, energy communities, or financing
support for individual installations.

-Support building-integrated PVs for both new buildings and renovations.

-

Ensure full implementation of the current provisions in the Energy Performance of
Buildings Directive (EPBD) in relation to the nearly zero-energy buildings
standard for new buildings, including through dedicated guidance.

Member States should:-

Establish robust support frameworks for rooftop systems, including in combination
with energy storage and heat-pumps, based on predictable payback times that areshorter than 10 years.

-

As part of such a framework and where needed to unlock investments, set up anational support programme to ensure as of next year:-

massive deployment of rooftop solar energy, giving priority to most suitablebuildings for quick interventions (Energy Performance Certificate classes A, B,
C or D),-combine solar deployment with roof renovations and energy storage; thisshould be implemented through a one-stop shop integrating all aspects.

The Member States should implement the measures under this initiative as a priority, using
available EU funding, in particular the new REPowerEU chapters of their Recovery and
Resilience Plans. The Commission will monitor progress in the implementation of thisinitiative on an annual basis, through the relevant fora, with the sector’s stakeholders and theMember States.
If fully implemented, this Initiative, as part of the REPowerEU plan, will accelerate rooftop
installations and add 19 TWh of electricity after the first year of its implementation (36%more than expected in the Fit for 55 projections). By 2025, it will result in 58 TWh of
additional electricity generated (more than double the Fit for 55 projections).

Financing solar energy deployment
Solar energy technologies have relatively high upfront costs, compared to other sources ofenergy, but low operational costs. Therefore, attractive financing conditions are crucial for
their competitive deployment. Commission analysis indicates that additional investments insolar PVs under REPowerEU would amount to EUR 26 billion between now and 2027, on
top of the investments needed to realise the objectives of the Fit for 55 proposals.
4

Most of the financing will be private, but partially triggered by public funding, including fromthe EU. The Recovery and Resilience Facility already dedicated at least EUR 19 billion toaccelerate the roll-out of renewables10. Other instruments are contributing to this effort: thecohesion policy funds, InvestEU, the Innovation Fund, the Modernisation Fund, Horizon
Europe and the LIFE programme. Connecting Europe Facility RES and the EU renewableenergy financing mechanism will support cross-border cooperation on solar energy projects.
Besides dedicated energy financing programmes, Member States should also look forsynergies with transport infrastructure or research and innovation programmes, ensuring acoordinated support framework for solar energy across relevant policy areas. In addition, theyshould use specific technical support provided by the Commission to reduce their dependence
on Russian fossil fuels through the Technical Support Instrument which inter alia supports
reforms to enhance the rollout of solar energy. The new Guidelines on State aid for climate,environmental protection and energy (CEEAG)11 have introduced a set of criteria for
tailored and proportionate support to renewable energy, including solar. Among other things,
this includes contracts for difference, technology-specific tenders or exemptions frommandatory competitive bidding for small projects, including certain energy community
projects.
2.1.

Utility-scale deployment and enabling measures

Utility-scale installations
Utility-scale solar installations will be crucial to replace fossil fuels at the required speed. In
recent years, competitive bidding has driven growth in this segment. By 2020, 19 Member
States had carried out national-level tendering processes, also known as renewable energy
auctions12. This mechanism has contributed to drive down costs and recent years have seen
greater emphasis on auction designs which increase reliance on market-based revenues13.
Stable, publicly available schedules for the foreseen auctions increase visibility for
project developers and drive up investment. They should cover at least the following five
years, include the frequency of competitive tendering, the related foreseen capacity, theavailable budget and the eligible technologies14.
Beyond auctions, public procurement can also be leveraged to further promote solar energy
deployment, while generating incentives to enhance the sustainability of the equipment. In
addition, aggregation of demand for solar energy from large public buyers can reduceinvestment risks and facilitate innovative business models in the solar energy sector. To thisend, the Commission will build on the Big Public Buyers initiative, proposing the creation of

10

Based on the 22 Recovery and Resilience Plans (RRP) adopted by the Council of the EU and the two RRPs of
Sweden and Bulgaria endorsed by the Commission on 29 March 2022 and 7 April 2022 respectively.
11
Communication from the Commission - Guidelines on State aid for climate, environmental protection andenergy 2022 (2022/C 80/01)
12
CEER report (2020): 2nd CEER Report on Tendering Procedures for RES in Europe; AURES II projectauction database.
13
For instance, under a two-way contract-for-difference premium model, the State pays the renewable electricity
producer the difference between the actual electricity price and a reference price when the former is lower; viceversa, the producer pays to the State the difference when the electricity price is above the reference price (seehttp://aures2project.eu)
14
Article 6 of Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on
the promotion of the use of energy from renewable sources.
5

a community of practice dedicated to the procurement of solar energy. This community will
share knowledge and develop best procurement practices for solar energy technologies.
Solar project developers are increasingly relying on a combination of electricity market
participation and corporate renewable Power Purchase Agreements (PPAs) to ensure astable income. A swift adoption of the revision of the Renewable Energy Directive (RED),
proposed in July 202115, and the implementation of the Commission Recommendation on
PPAs adopted alongside this communication should allow Member States to boost the number
and aggregated volume of the agreements.
As the share of variable renewables increases in the electricity system, auctions should also
support renewables-based technologies that can reduce the cost of ensuring network
stability and system integration. Concentrated Solar Power (CSP) with thermal storage andsolar PV with batteries are examples of technologies that can provide these benefits.
The public consultation confirmed that a key barrier holding back utility-scale installations,
including solar, is administrative, in particular long and complex permit-granting procedures.
To overcome this obstacle, the Commission has presented a Recommendation on fast
permitting for renewable energy projects and a legislative proposal on permitting
alongside this communication.
Go-to areas and multiple use of space
The required expansion in utility-scale projects will increasingly face competing uses of landand public acceptance challenges. Member States should undertake a mapping exercise to
identify appropriate locations for renewable energy installations needed to collectively
achieve the revised EU 2030 renewable energy target. They should also designate therenewable go-to areas in which permitting will be simpler and faster than elsewhere while
limiting the impact on other uses of land and preserving environmental protection. In addition,
permit-granting procedures for the installation of solar energy equipment in rooftops andother structures created for purposes different than solar energy production should be limited
to three months.
The repurposing of former industrial or mining land represents an opportunity for solar energy
deployment. The Modernisation Fund, as well as the cohesion policy, in particular the Just
Transition Fund, can support this kind of economic diversification and reconversion
initiatives.
Innovative forms of deployment (1) – Multiple use of space
Multiple use of space can contribute to mitigating land constraints linked to competition forspace, including for environmental protection, agriculture and food security.
In particular, under certain conditions, the agricultural use of land can be combined with

15

Proposal for a Directive of the European Parliament and of the Council amending Directive (EU) 2018/2001,
Regulation (EU) 2018/1999 and Directive 98/70/EC on the promotion of energy from renewable sources, andrepealing Council Directive (EU) 2015/652 (COM(2021) 557 final)
6

solar generation in so-called agrivoltaics (or agri-PV). The two activities can establish
synergies, whereby PV systems can contribute to crop protection and yield stabilisation16,
with agriculture remaining the primary use of the land area. Member States should consider
incentives for the development of agri-PV while designing their National Strategic Plans for
the Common Agricultural Policy, as well as their support frameworks for solar energy (e.g.
through the integration of agri-PV in renewable energy tenders). It is also worth noting that,in the agricultural sector, State aid rules allow investment aid to sustainable energy.
Furthermore, thanks to floating PV solutions, the surface of water can be used for solar
generation. Offshore solar installations represent a great potential, integrated in the EU
Offshore Renewable Energy Strategy17. Ongoing research and innovation efforts are
dedicated inter alia to developing new mooring solutions, improving the durability of PV
panels in marine environment, monitoring and assessing the impact on the environment andreducing maintenance costs. Within the energy sector, the use of the surface of artificial
lakes created by hydroelectric dams represents a specific potential for PV deployment.
Floating PV panels reduce water evaporation and, connected to the dam’s electric systems,
increase the total output, although the impact on aquatic biomass is still being investigated.
Any intervention on water bodies must respect the conditions set out in the Water Framework
Directive and the Marine Strategy Framework Directive 18.
Finally, transport infrastructure, such as highways or railway tracks, presents an
unexploited potential for solar energy deployment. For instance, if the installation of solar
panels on highway sound barriers in a pilot project in the Netherlands were to be replicatedin the country’s whole system of sound barriers, it would yield enough electricity for 250,000
households19.
The Commission will develop guidance for Member States to promote the development of
the innovative forms of solar energy deployment listed in this strategy.
Rising to the skills challenge
The EU solar PV sector employed 357,000 full-time equivalent (direct and indirect) jobs in2020 and this figure is expected to at least double by 2030. The installation sector is aparticularly strong source of local jobs, representing 80% of the total, while the operation andmaintenance sector accounts for 10%20.
16

Barron-Gafford, G.A., Pavao-Zuckerman, M.A., Minor, R.L. et al. Agrivoltaics provide mutual benefits acrossthe food–energy–water nexus in drylands. Nature Sustainability 2, 848–855 (2019). See also research developed
by Fraunhofer ISE on the topic: https://agri-pv.org/
17
Communication from the Commission to the European Parliament, the Council, the European Economic andSocial Committee and the Committee of the Regions - An EU Strategy to harness the potential of offshore
renewable energy for a climate neutral future COM(2020) 741
18
Directive 2000/60/EC of the European Parliament and of the Council establishing a framework forCommunity action in the field of water policy; Directive 2008/56/EC of the European Parliament and of theCouncil establishing a framework for community action in the field of marine environmental policy
19
Solar Highways: solar panels as integrated constructive elements in highway noise barriers. A multifaceted
research into the design, construction and yield of a bifacial solar noise barrier. A LIFE + programme project
executed by Rijkswaterstaat and TNO. ‘Layman’s report’ Author: Minne de Jong, June 2020
20
SolarPower Europe, EU Solar Jobs Report 2021.
7

There is already a lack of skilled workers. This bottleneck could grow quickly if unaddressed.
Vocational and Educational Training is an important instrument to address this challenge andMember States are encouraged to analyse the skills gap in the solar energy sector and develop
training programmes fit for purpose, taking into account the potential to increase women’s
participation.
At EU level, as part of the REPowerEU plan, the Commission will bring together the relevant
stakeholders in the renewable energy sector, including from the solar, wind, geothermal,
biomass and heat pumps industries, but also from regional and national permitting authorities,
to set up an EU large-scale skills partnership for onshore renewable energy, including solar
energy, under the Pact for Skills.
The partnership should develop a clear vision of concrete upskilling and reskilling measures
for solar energy expansion. This should include training cooperation between companies
along the value chain, social partners, training providers, and regional authorities. By joining
forces, stakeholders can maximise the return on their investment in the partnership. Private,
local and national funds can support the partnership’s objectives and be complemented by EU
funding, from the European Social Fund to Erasmus+ and Marie Skłodowska-Curie Actions.
The Commission will support implementation by the Member States of the Council
Recommendation on ensuring a fair transition towards climate neutrality including actions to
support workforce reskilling and upskilling and labour market transitions towards growing
sectors such as solar energy21.
In addition, to promote mobility, the revision of the RED proposed in July 2021 provides
requirements for mutual recognition of certification schemes across the EU, based oncommon unified criteria. It also mandates Member States to publish the list of certified
installers to provide guarantees for consumers.
2.2.

Bringing solar value to citizens and communities

Deploying solar energy on rooftops provides an immediate solution to reduce reliance onnatural gas for citizens, but also SMEs and industry. With every energy consumer turned
producer, the acceptance and democratisation of the transition towards a clean andindependent energy system is reinforced. Accelerating this transition requires lifting the rangeof regulatory, financial and practical barriers that still prevent most EU citizens from using thesunshine to increase their independence and reduce their energy bills.
Incentivising prosumers
Prosumers are owners of small, decentralised installations who self-consume part of theenergy they produce. Support and enabling policy frameworks for prosumers take various
forms: investment subsidies, feed-in tariffs, exemptions from certain taxes or the possibility tosell excess electricity to other consumers or directly in the market. Among other things, the
new State aid CEEAG guidelines include exemptions from mandatory competitive bidding
processes to allocate aid and determine the aid level for small projects, including those below
or equal to 1 MW of installed capacity. In addition, the 2021 proposal for the revision of the21

COM(2021) 801, SWD(2021) 452 final. Annex 3 provides an overview of funding supporting the fairtransition to climate neutrality and the online source “EU funding instruments for upskilling and reskilling”
8Energy Taxation Directive continues to allow Member States not to tax electricity of solar
origin22.
The full potential of solar energy for the EU can only be exploited if citizens and communities
are provided with the right incentives to become prosumers. The public consultation pointed
to the persistence of some negative factors, such as low remuneration for the excess electricity
produced or a general lack of awareness.
Better information is key to enhance clarity and predictability on the benefits of selfconsumption for potential investors, citizens and SMEs. Investment costs, financial support,
increase of property value, network tariffs, generation and consumption profiles and return on
investment are all relevant factors impacting investments. One-stop-shops in Member Statesshould share such information and give citizens advice on both energy efficiency measuresand solar energy projects in an integrated manner, from the technical requirements toadministrative steps and support measures. The best available projections on the above
variables should then be used to design support frameworks that reassure those deciding
on an investment in solar energy, energy storage or heat pumps. This should be done inparticular through a predictable payback period, shorter than 10 years.
Direct public support, multi-stakeholder approaches and innovative financing models should
facilitate access to solar energy for the energy poor and vulnerable. This issue deserves
particular attention in the most remote regions, i.e. the EU outermost regions23, which enjoy alarge untapped solar energy potential.
Member States should support partnerships between local authorities, energy communities
and social housing managers to facilitate collective and individual self-consumption schemes.
Pre-financing shares in energy communities, virtual net-metering schemes (while accounting
separately for calculating network charges) or renting out solar PV, energy storage and heatpumps at a fee lower than retail electricity prices, can all be used for this purpose. Member
States can also24 apply reduced VAT rates to energy efficient, low emission heating systems,
including solar panels, solar water heating systems and heat pumps, as well as to social
housing and residential building renovation expenditure25.
PVGIS, a tool for citizens to evaluate their roof’s PV potential
The free and open web-based PVGIS Photovoltaic Geographical Information System tool,
developed and maintained by the European Commission’s Joint Research Centre, provides
information about solar radiation and PV system performance for any location in Europe.

22

Proposal for a Council Directive restructuring the Union framework for the taxation of energy products andelectricity (recast) COM(2021) 563 final
23
The EU counts nine outermost regions - French Guiana, Guadeloupe, Martinique, Mayotte, Reunion Islandand Saint-Martin (France), Azores and Madeira (Portugal), and the Canary Islands (Spain). They are located in
the western Atlantic Ocean, the Caribbean basin, the Amazonian forest and the Indian Ocean and are home to 4.8
million EU citizens
24 Council Directive (EU) 2022/542 of 5 April 2022 amending Directives 2006/112/EC and (EU) 2020/285 asregards rates of value added tax
25
See annex III of Council Directive (EU) 2022/543.
9

Citizens and installers can use it for an instantaneous assessment of the potential to generate
solar energy on rooftops.26
A balanced allocation of costs and benefits
One of the main barriers to individual or collective self-consumption identified bystakeholders through the public consultation are charges and network tariffs.
Under the current EU legislation, national regulatory authorities (NRAs) have the mandate
and exclusive competence to prescribe transparent, non-discriminatory and cost-reflective
tariffs. Prosumers have the right to sell their excess production without being subject todiscriminatory or disproportionate procedures and charges and should be able to participate inall electricity markets. These principles are not yet widely implemented across the EU,
especially in multi-apartment buildings.
Member States should avoid discriminatory treatment as regards grid injection tariffs between
producers connected at transmission level and those connected at distribution level, such as
prosumers and energy communities. Authorities should enable the development of local
energy markets to diversify remuneration pathways for prosumers, based on energy sharing
and peer-to-peer exchange arrangements.
In the context of collective self-consumption or peer-to-peer exchanges within multiapartment buildings, NRAs should consider possible cost reductions stemming from thereduced use of the network. At the same time, such cost-reflective tariffs should not lead todiscrimination against those who do not have access to self-consumption. In other words, any
discriminatory cost-socialisation of grid-related costs should be avoided. Looking forward,
digitalisation, in particular smart meters, can greatly facilitate real-time monitoring ofelectricity flows and the evaluation of the impact on grid costs.
Time-differentiated distribution network tariffs, especially if flanked by dynamic pricing
contracts, would contribute to aligning the choices of prosumers and energy communities withgrid congestion management needs and market conditions.
Energy communities and other collective solar actions
Collective solar energy projects provide another avenue to reduce the consumption of fossil
fuels and address energy poverty and vulnerability.
Current legislation already supports renewable and citizen energy communities, as well as
collective solar initiatives to generate, store, share, exchange, and use energy. However, thesecommunities still face significant barriers, including difficulties in securing financing,navigating licencing and permitting procedures or developing sustainable business models. In
addition, as they are often initiated by a group of volunteers, they suffer from limited time andlack of access to technical expertise. Cross-border energy communities, which can exploit

26

https://joint-research-centre.ec.europa.eu/pvgis-photovoltaic-geographical-information-system_en10complementary renewable energy potentials in EU border regions, face additional challenges
linked to legal, technical or administrative inconsistencies across borders27.
To tap into this potential, Member States should establish appropriate incentives and adapt
administrative requirements to the characteristics of energy communities. An integrated
3-step “learn-plan-do” programme could help energy communities build technical expertiseand secure access to financing. The assessment and removal of existing barriers would level
the playing field with more professionalised and established market participants.
In addition, Member States are encouraged to make use of the flexibility provided by the new
State aid CEEAG guidelines, including exemptions for renewable energy community projects
with installed capacity equal to or below 6 MW from mandatory competitive bidding
processes, or to facilitate their participation in such processes.
Collective action can also be organised by consumer organisations, for instance by purchasingof solar energy products. Other types of collective solar energy actions, managed byprofessionalised and larger actors, should also be encouraged to engage in innovative businessmodels based on collective self-consumption and energy sharing.
Integrating solar energy through the interaction with other devices
To be seamlessly integrated in the energy system at large, the rapid growth of solar energy
requires new technological, digital and operational advances.
Energy storage is an important asset to contribute to this integration, especially in the context
of heating or transport shifting to electricity. Full system benefits from distributed assets, suchas batteries, can only be reaped if they are properly integrated and able to participate in allelectricity markets, including balancing and congestion management markets, in a nondiscriminatory and homogeneous manner across the EU. At EU level the ongoing work on the
EU network code on demand side flexibility aims at addressing remaining regulatory
barriers and unlocking the potential of such distributed assets as flexibility sources. The July
2021 proposal for a revision of the RED also includes additional provisions to ensure nondiscrimination in the market participation of these assets.
Electric vehicles (EVs) can also serve as energy storage devices and contribute to solar
electricity self-consumption, if parked within the premises of the owner or user. Linking theEV’s consumption at home while recharging away from home, for instance through the same
electricity supplier, can potentially contribute to a more dynamic system integration of
distributed solar energy assets. This may also allow owners and users to use the same contractand data-sharing agreement for their recharging needs.
Off-grid recharging stations equipped with PV panels and energy storage offer the possibility
to increase access to EV recharging infrastructure in rural areas and, in general, in thoselocations with limited grid connection.
Innovative forms of deployment (2): vehicle-integrated PV
Solar energy and electric vehicles can also be integrated in technologically novel ways.
Report from the Commission “EU Border Regions: Living labs of European integration”, COM(2021) 393
final.
27

11

Vehicle-integrated PV presents a high potential to contribute to the reduction of emissions
from the transport sector, by increasing the energy autonomy of EVs and partially replacing
grid power with solar electricity produced on board28. More than other EVs, they can also
become an additional source of electricity for the grid while parked, and an energy storage
solution contributing to overall grid resilience. The opportunities provided by this technology
are being analysed through a pilot project managed by the Commission29.
Devices such as batteries and heat pumps can only contribute to the integration of solar
electricity into the energy system if they can effectively communicate with each other andwith solar energy systems. This interoperability can be facilitated through measures such as
standardisation, or open-source solutions for digital connectivity. One of the objectives of theCommission’s proposal for a Data Act30 is to foster a level playing field for energy solutions
and services, while putting the user in control of data collection and sharing to third-party
service providers. Research and innovation projects jointly develop interoperability and data
sharing solutions, while standardisation organisations are already running activities in thisrespect. In addition, the upcoming Digitalisation of Energy Action Plan will support
interoperability for a wide range of energy consuming, producing and storage devices througha code of conduct for energy smart appliances manufacturers 31.
2.3.

Solar value for buildings and industry

The contribution of solar to decarbonising our building stock
Solar energy can deliver a substantial part of a building’s electricity and heat demand, either
through solar heat collectors, solar PV (with heat pumps) or a combination of the two,
including hybrid PV-thermal technologies. Through support policies and regulations thatprovide a level playing field for all solar technologies and do not favour one against theother, national and local authorities can promote the most efficient solution for each situation.
When combined, the installation of solar energy and renovation interventions become
mutually reinforcing, optimising the building’s energy performance. If national support
programmes are designed accordingly, they can ensure swift massive deployment of rooftop
solar energy in buildings, giving priority to most suitable buildings for quickinterventions (Energy Performance Certificate classes A, B, C or D). Where appropriate, thiseffort can be combined with roof renovations and deployment of energy storage and heatpumps.

28

Thiel, C., Gracia Amillo, A., Tansini, A., Tsakalidis, A., Fontaras, G., Dunlop, E., Taylor, N., Jäger-Waldau,
A., Araki, K., Nishioka, K., Ota, Y., Yamaguchi, M.: Impact of climatic conditions on prospects for integrated
photovoltaics in electric vehicles (2022). Renewable and Sustainable Energy Reviews, 158, art. no. 112109
29
Pilot Project – Effect of Energy-efficient and Solar Power Generating Vehicles on Overall Energy Demand in
the EU Transport Sector (2022/S 053-136682) – Contract notice published on 16/03/2022.
30
Proposal for a regulation of the European Parliament and of the Council on harmonised rules on fair access toand use of data (Data Act) COM(2022) 68 final
31
See the work carried out by the JRC in this area: https://ses.jrc.ec.europa.eu/development-of-policy-proposalsfor-energy-smart-appliances12

As regards new buildings, where technically feasible, the recast of the Energy Performance of
Buildings Directive32 requires that 100% of on-site energy consumption be covered byrenewable energy as of 2030. This transition towards the decarbonisation of buildings’
energy consumption will be accelerated by introducing an obligation to install solar energy
equipment on all new and existing public and commercial buildings above a certain size andon new residential buildings in a gradual fashion, between 2026 and 2029. Where the building
is not adapted, renewable electricity can also be acquired through a PPA.
In addition, provisions will be adopted to ensure that all new buildings are “solar ready”,
i.e. designed to optimise the generation potential on the basis of the site’s solar irradiance,
enabling the fruitful installation of solar technologies without costly structural interventions.
Greening of energy taxation and the proposed new emissions trading system for buildings
and road transport can contribute to generating the resources required for these interventions,while setting the appropriate economic incentives. In this context, the proposed Social
Climate Fund can support measures and investments integrating renewables in buildings,
principally to the benefit of vulnerable consumers and micro-enterprises.
Innovative forms of deployment (3): Building-integrated PV
The opportunities that buildings provide to install solar energy extend well beyond rooftops
and parking spaces. Building-integrated PV (BIPV) represents a novel form of solar
deployment: they constitute a construction product, while at the same time allowing solar
electricity generation from additional surfaces. Despite recent cost reductions, the potentialof this sector remains to be unlocked through uptake by the construction sector and therelated economies of scale. EU-wide deployment would require homogeneous certification
for the affected products, as well as customised professional training and university
programmes. National governments can also provide guidance to local authorities on how todeal with BIPV in their permitting decisions33. Some Member States have introduced specificopportunities for BIPV in their renewable energy support frameworks. Attaching suchsupport to the construction permit stage can further facilitate the uptake of these products byactors in the construction sector.
Solar energy for the industrial sector
To meet their electricity demand, companies are already signing direct PPAs with solar
energy projects. By 2021, more than 5 GW of solar PV projects had directly signed PPAs
with corporate offtakers34. However, corporate renewable PPAs still account for a small
fraction of the sector’s electricity consumption.
Solar energy can also provide industrial heat, which accounts for 70% of industrial energy
demand. Based on solar collectors or concentrated solar, solar heat can deliver heat forindustrial processes from 100 to over 500°C. Nevertheless, the potential of solar heat for
32

Proposal for a directive of the European Parliament and of the Council on the energy performance of buildings(recast) COM(2021) 802
33
JRC Policy Brief (JRC120970): How Photovoltaics can ride the EU Building Renovation Wave
34
RE-Source platform (2021)
13

industrial processes is still largely untapped. Two of the main obstacles it faces areadministrative hurdles and the gap between the payback times of these investments and thefinancial requirements of most industrial actors.
Solar electricity can be used in combination with heat pumps or electric furnaces to provide
heat, or it can be converted into renewable hydrogen, to be used as fuel or feedstock inindustrial processes. Due to declining costs, in particular in places with high irradiation andlimited land constraints, it is expected that renewable hydrogen production from solar
electricity could become cost-competitive within the next decade.
The Commission is preparing an EU-wide scheme for carbon contracts for difference
under the Innovation Fund to support innovative solutions for the decarbonisation ofindustrial energy demand.

2.4.

Preparing the energy network for the efficient absorption of solar
electricity

Infrastructure investments
Solar energy is abundant, but the energy infrastructure bringing it to the consumer mustchange to enable a more electrified system powered by wind and solar. In the public
consultation, solar industry stakeholders identified grid expansion and grid connection as a
key bottleneck for deployment.
The efficient integration of decentralised solar installations will primarily require significant
adaptations in distribution networks. These include digitalisation investments, such as smart
grids, to enable higher system performance and seize the flexibility opportunity provided bysmall distributed assets. The forthcoming Digitalisation of Energy Action Plan will highlightthe importance of providing clear investment signals to accelerate the digitalisation of theelectricity grid.
A trans-European electricity system provides intrinsic flexibility and contributes to lower
prices. The updated Trans-European Networks for Energy (TEN-E) regulation35 willcontribute to the expansion of cross-border electricity infrastructure and smart grids andfacilitate integrated infrastructure planning, thus enabling a more efficient transmission andintegration of solar electricity produced across the EU.
Member States should use EU funds to remove the bottlenecks to solar expansion in
distribution and transmission grids. This could be done through their cohesion policy funding,including INTERREG or the Recovery and Resilience Fund which already foresees EUR 9.6
billion dedicated to energy networks and infrastructure36.
Paving the way for Direct Current solutions

35

Proposal for a regulation of the European Parliament and of the Council on guidelines for trans-European
energy infrastructure and repealing Regulation (EU) No 347/2013 – COM (2020) 824 final
36
Based on the 22 Recovery and Resilience Plans (RRP) adopted by the Council of the EU and the two RRPs of
Sweden and Bulgaria endorsed by the Commission on 29 March 2022 and 7 April 2022 respectively.
14

The introduction of high shares of solar PV and wind has an impact on the way the electricity
grid is managed. As renewable power from solar is produced in Direct Current (DC),conversion to Alternating Current (AC) to feed into the grid and then converting back to DC,
e.g. to store energy, leads to energy losses. Such conversion losses are currently growing
because more devices and system, such as batteries, heat-pumps, data centres, electricvehicles or appliances, operate in DC. Increasing the use of DC technologies could thus bebeneficial to the electricity system.
The Commission is investigating how low-voltage DC technologies can enhance the clean
energy transition. Based on the conclusions drawn from this process, it will engage with
European and international standardisation bodies for the establishment of the necessary
standards and protocols.

The updates of the National Energy and Climate Plans are a critical tool for the Member
States to adapt and enhance the necessary policies and measures to implement the abovementioned initiatives accelerating massive deployment of solar energy. To ensure this, theCommission will provide Member States with guidance ahead of the update of their plans in
2023.

3.

ENSURING ACCESS TO SUSTAINABLE SOLAR ENERGYThe EU currently imports most of the solar energy products it installs: EUR 8 billion of PV
panels in 2020, 75% of which from a single country37. Meanwhile, only a small share of
global production takes place in the EU. This level of supply concentration diminishes theEU’s resilience in case of global or country-specific events. Expanding the EU solar value
chain, in particular in the manufacturing stage, on the back of its vibrant innovation andcompetitive market, will strengthen the sector’s resilience, while creating jobs and value
added. In addition, the EU will step in to ensure that solar energy products are sustainable andup to the standards demanded by EU consumers.
3.1.

More innovative, sustainable and efficient solar energy products

Supporting innovation in solar energy
The solar energy sector has become a very dynamic and competitive industry, ensuring a
constant output of innovative technologies. The EU has one of the strongest innovation
environments across all solar energy technologies, from PV to concentrated solar power(CSP). The challenge now is to ensure that a new generation of breakthrough technologies
leads to higher conversion efficiencies (which translate into less use of resources, such as
space, raw materials, water, etc), increased circularity in the use of raw materials and a moresustainable life cycle, including in manufacturing.
Through Horizon Europe, the EU will continue to support research and innovation to reducethe cost of solar energy technologies, while increasing their energy efficiency and theirsustainability, including in the manufacturing stage. These new technologies include
37

Eurostat - International trade in products related to green energy.
15heterojunction cells, perovskites and tandem cells, all of which achieve higher efficiencies
than commercial technologies. Financial support is also needed for innovation in solar thermalor CSP technologies, as well as products tailored to innovative forms of deployment. The
upcoming 2023-2024 work programme will include a flagship initiative to support solar
energy research and innovation, focused inter alia on novel technologies, environmental
and socio-economic sustainability, and integrated design.
Also under Horizon Europe, the European Partnership for Clean Energy Transition willcrowd in support from Member States, the energy industry and public organisations forresearch and innovation in solar energy over the 2021-2027 period. The collaboration withMember States can be further expanded by developing a common solar energy research andinnovation agenda in the framework of the European Research Area. This initiative will buildon the ongoing work of the Strategic Energy Technology Plan.
The space sector represents an additional innovation trigger. This strategic sector needs thedevelopment of high-performance solar cells, including multijunction cells. The Commission
will continue to exploit synergies between the space and terrestrial sectors in all initiatives
critical for the EU space programme, including research and development.
To bridge the gap between research results and commercial development, the Innovation
Fund will provide around EUR 25 billion of support over 2020-2030, depending on the
carbon price, for the commercial demonstration of innovative low-carbon technologies,
including solar energy. One of the seven large-scale projects selected in the first batch
supports innovation in the solar sector. Finally, the European Regional Development Fundsupports research and innovation in Member States and regions in priority areas identified
through the local smart specialisation strategies.
Fostering the sustainability of PV systems installed in the EU
Over 20 years of operation, today’s commercial PV systems can produce almost twenty times
the energy needed to manufacture them38. However, it is important to continue to reduce thecarbon and environmental footprint associated with their manufacturing.
The European Commission plans to propose in the first half of 2023 two mandatory internalmarket instruments that would apply to solar PV modules, inverters and systems sold in the
EU: an Ecodesign Regulation and the Energy Labelling Regulation. These measureswould concern the efficiency, durability, reparability and recyclability of products andsystems, to incentivise environmentally sustainable devices. The Commission is also
assessing options covering the quality of the manufacturing process and the carbon footprintof PV modules. Apart from their sustainability impact, these measures are also expected tofoster innovation and provide a common reference for potential buyers to compare different
products.
The Commission also plans to propose a revision of the existing Ecodesign and Energy
Labelling regulations for space and water heaters in 2023. The interaction between heaters
and solar energy products is key for the integration of solar energy; these regulations would
make their combined benefits more understandable and visible for consumers.

38

Photovoltaics report, Fraunhofer Institute for Solar Energy Systems, February 2022
16

The EU will provide European consumers with guarantees that the products they buy havebeen made respecting human and labour rights. Since private actors play a central role in thefight against forced labour, the Commission has put forward detailed reporting requirements
covering this and other labour rights aspects in its proposal for a Corporate Sustainability
Reporting Directive39.In addition, the Commission has announced a new legislative initiative
to effectively prohibit the placing on the EU market of products made by forced
labour40. It will build on international standards and existing EU initiatives in particular due
diligence and transparency obligations, and combine a ban with a risk based enforcement.
3.2.

Supply chain resilienceRaw materials reliance
The use of raw materials for manufacturing of PV panels depends on the technology used.
The market is currently dominated by crystalline silicon cells, which essentially rely on
silicon. Thin-film technologies, which represent less than 5% of the global supply, make amore heterogeneous use of raw materials41. In addition, the manufacturing and installation of
all PV modules requires glass, aluminium and steel; copper is used for their connection to thegrid. Suppliers from within the EU currently cover a small share of demand for processedmaterials and depends on international suppliers, often concentrated in one or a small numberof countries.
Although materials intensity is set to decrease over time thanks to technologicalimprovements, silicon demand is expected to increase fourfold by 2030 and then stabilise42.
EU policy aims at building resilience in relation to critical raw materials, based on access toresources, circular economy and sustainability. Achieving resource security requires action toensure that global markets are not distorted and to diversify supply. Strengthening thesustainable and responsible domestic sourcing of, in particular, silicon metal and polysilicon
could also be envisaged.
Improving resource efficiency and circularity is equally important to address thischallenge. Since 2012 EU legislation has called for the recovery, reuse and recycling of PV
modules. The recycling industry today can deliver high levels of circularity, but further
innovation is still needed. Starting in 2025, the quantity of PV panels reaching their end of life
will significantly increase. This will require ensuring reparability and recyclability by designfor new equipment and building up an ecosystem for the efficient recycling of usedmaterials. The Ecodesign measures for PV systems would include information requirementson these aspects to promote better product design leading to higher long-term energy
performance and facilitating recycling and repair.
Manufacturing: a critical point for resilience

39

Proposal for a directive of the European Parliament and of the Council amending Directive 2013/34/EU,
Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate
sustainability reporting COM(2021) 189 final
40
Commission Communication on decent work worldwide for a global just transition and a sustainable recovery(COM(2022) 66 final)
41
There are three main categories of thin film solar cells: cadmium telluride (CdTe), copper indium gallium
diselenide (CIGS), and amorphous thin-film silicon (a-Si, TF-Si).
42
JRC, Joint Research Centre (Carrara, S., Alves Dias, P., Plazzotta, B., Pavel, C.), (2020a), Raw materials
demand for wind and solar PV technologies in the transition towards a decarbonised energy system.
17

The EU industry holds strong positions in several parts of the solar PV value chain, startingwith the polysilicon sector, but especially in the downstream segment, including inverter andsolar trackers manufacturing or monitoring and control. European companies have also
maintained a leading position in the deployment sector. As shown in the figure below,
downstream segments represent half of the value chain’s gross value added and the EU
captures more than 10% of that value.
Figure: Breakdown of Gross Value Added throughout solar PV value chain43

Source: Guidehouse Insights, 2020

At the same time, the EU is today a small actor in several critical manufacturing and assembly
steps in the upstream value chain, including ingots, wafers and cells44. If the scarcity of EUbased manufacturing is not remedied, it is poised to reduce the EU’s competitiveness inresearch and innovation, an area in which proximity to manufacturing clusters is often
necessary.
The marginal EU contribution in the manufacturing and assembly stages of the supply chain,combined with the quasi-monopolistic role of one country at the components stage at global
level, diminishes the EU’s resilience in case of extensive external supply disruptions45. This
creates risks for accelerated solar energy deployment.
3.3.

An EU Solar PV Industry Alliance

Increased EU demand for PVs and rising global transport costs are attracting interest ininvestments in PV manufacturing in the EU. At the same time, the industry is finding it

43First published in the European Commission Staff Working Document accompanying the report from theCommission to the European Parliament and the Council “Progress on competitiveness of clean energy
technologies” (COM(2021) 950, COM(2021) 952)
44
European Commission, Report from the Commission to the European Parliament and the Council: Progress oncompetitiveness of clean energy technologies (COM(2021) 950 final) – (SWD(2021) 307 final). Figures citedcover EU + Norway.
45
European Commission, Directorate-General for Energy, Guevara Opinska, L., Gérard, F., Hoogland, O., et al.,Study on the resilience of critical supply chains for energy security and clean energy transition during and after
the COVID-19 crisis : final report, 202118

difficult to translate its innovative technological advantages into large scale production andbuild economies of scale, notably due to high perceived financing risks.
Nevertheless, at least 14 projects have been announced, covering ingots, wafers, cells andmodules, although many of them have not yet secured financing. This project pipeline would
bring the industry close to achieving a manufacturing capacity equivalent to 20 GW of solar
PV at each step of the value chain - an objective set for 2025 by the European Solar Initiative.
It is estimated to require more than EUR 8 billion in investments.
EU Solar PV Industry Alliance
Securing a diversification of supplies through more diverse imports and scaled up solar PV
manufacturing in the EU of innovative and sustainable solar PVs would contribute to mitigate
supply risks for the necessary massive deployment of solar energy in the EU. This objective
will be supported by an EU Solar Industry Alliance.
The alliance will bring together industrial actors, research institutes, consumer associations
and other stakeholders with an interest in the solar PV sector, including the emerging
circularity industry. The Alliance will work to identify and coordinate investment
opportunities, project pipelines and technology portfolios and establish pathways for thesolar industrial ecosystem in Europe.
It will provide a framework for coordinating actions aimed at the development and uptake ofnew, more efficient and sustainable technologies. It will cover innovation/technology,
industrial supply chain, finance, regulation, skills and citizen engagement, and provide advice
to the EU and the Member States. The alliance will map the availability of financial support,
attract private investment and facilitate the dialogue and match-making between producers
and offtakers.
At EU level, the following EU programmes are particularly relevant:-InvestEU can provide de-risked financing to private investments channelled via
the European Investment Bank and other public finance institutions.

-

The Innovation Fund can also channel funding towards innovative zero and lowcarbon equipment, such as solar panels and their components.

-

Recovery and resilience and Cohesion policy funds can support relevant projects
boosting local development.

The alliance will include a research and innovation pillar with strong links to Horizon
Europe.
Circularity and sustainability will also be in its focus. It will promote coordination across thevalue chain to facilitate higher recycling efficiencies. It will monitor developments in this
sector and anticipate possible bottlenecks, in particular with regard to access to safe andsustainable raw materials. It could discuss potential targets for material recovery rates.
Finally, the alliance will cooperate with the EU large-scale Skills Partnership for onshore
renewables to promote the development of a skilled workforce for the solar manufacturingsector.
19

The Alliance will fully comply with EU competition rules, in particular Article 101 TFEU, inboth its setting-up and its activities46.
The Commission will work on a guidance on permitting procedures for new manufacturing
plants.
The Commission will support efforts from Member States to pool their public resources via a
potential Important Projects of Common European Interest (IPCEI) focused on breakthroughtechnologies and innovation along the solar value chain.
The innovative forms of deployment highlighted above, such as product-integrated PV or
multiple use of space, also tend to require product innovation and customisation to specificneeds. As PV expands beyond the current model of modular rooftop and utility-scaleinstallations, a proactive, innovative EU industry can fill the emerging gaps on the supplyside.
In the context of rapid innovation, the EU must strive to maintain its competitiveness in thevalue-chain segments where it is stronger, such as trackers or inverters, as well as
engineering, procurement, and construction.

4.

INTERNATIONAL COOPERATION IN THE FIELD OF SOLAR ENERGY

Solar energy is a cornerstone of the global transition to clean energy and net zero emissions.
While many of the least developed and most vulnerable countries are the most endowed interms of potential, a range of factors have hampered the uptake and development of solar inthese regions. By the end of 2021, 843 GW were installed worldwide, more than double thecapacity installed just four years earlier47. And yet, further acceleration in solar energy
deployment and integration is still required to achieve the objectives enshrined in the Paris
Agreement.
The EU has developed an energy model that creates the incentives to attract investments inrenewable energy and integrate them into the grid. Many partner countries in the EU’s
neighbourhood, such as those belonging to the Energy Community, are interested in
replicating this model, backed by regional electricity markets and cross-border cooperationand infrastructure. The EU, via its diplomatic efforts and strategic engagement with third
countries will be working on expanding solar energy and other renewables to reduce exposure
to fossil fuel volatility and geopolitical risks.
Beyond Europe and its neighbourhood, many countries are firmly committed to solar energy
deployment. India is an example and the EU is offering its support through technicalcooperation and business-to-business interactions, under the EU-India Clean Energy andClimate Partnership. The exponential growth of PV markets also demonstrates theversatility of solar technologies in countries such as Vietnam or Japan.

46

Competition rules should in particular be safeguarded by reporting on meetings, discussions, informationexchanged and agreements reached and making these available to the Commission on request. Furthermore, themembers of the alliance will sign a code of conduct including a competition compliance programme.
47
IRENA statistics

20

While solar power is the cheapest source of electricity in most countries today, it is still
prevented from competing on equal terms by market distortions, subsidies or advantages toincumbent energy producers. The EU is actively supporting the phasing out of fossil fuelsubsidies worldwide and the promotion of open, transparent and competitive investment
conditions. The EU will also work with its partners to remove trade and investment barriers
such as local content requirements and to promote transparent and competitive procurement
procedures. Promoting a more favourable business environment will also be an objective of
future trade agreement negotiations. In the context of the EU-US Trade and Technology
Council, both sides are discussing supply chain resilience in the solar value chain with regard
to transparency and sustainability.
The EU stands ready to support its partners around the world in making use of this technology
to accelerate their transition towards universal access to affordable, reliable, and modern
energy services, as enshrined in the 7th UN Sustainable Development Goal for 2030. Solarenergy’s accessibility, modularity and flexibility makes it suitable both for centralised anddecentralised grid systems.
Africa, which has the richest solar resources on the planet, installed only 5 GWs of solar PV
in 2019. At the same time, in sub-Saharan Africa, 570 million people do not have access toelectricity. Last February, during the 6th EU–African Union Summit, the Commission
presented the Africa-EU Green Energy Initiative to support Africa’s green transition in theenergy sector by increasing renewable energy capacity and the number of people gaining
access to affordable and reliable energy. The EU can assist Africa’s efforts to adopt
innovative technologies maximising solar energy resources, that is through agri-PV or
floating solar on artificial lakes48. As part of the Global Gateway EU-Africa investment
package, the EU will support the development of regional electricity markets across the fivecontinental African power pools through technical assistance and funding for electricity
interconnections and transmission lines. To diversify its suppliers, promote sustainable
development and local value in partner countries, the EU is also exploring opportunities toengage with selected countries in sustainable raw material value chains partnerships to
support alternative sources of materials needed for the solar industry.
In cooperation with the International Renewable Energy Agency, the EU is also preparing
Regional Energy Transition Outlooks for Africa, Latin America and the Caribbean andEurope, providing a thorough analysis of the regions' potential and options in terms ofrenewable energy, energy efficiency, infrastructure, energy access and cross-bordercooperation. The EU is also cooperating with the International Solar Alliance to disseminate
its experience in solar energy technologies, policies and practices. With the International
Energy Agency, the EU will also prepare zero-emission energy roadmaps for just andsocially fair transitions in countries dependent on coal.

5.

CONCLUSIONS

EU solar energy has a significant potential to rapidly become a mainstream part of our powerand heat systems and a main lever to achieve the European Green Deal objectives while
48

Gonzalez Sanchez, R., Kougias, I., Moner-Girona, M., Fahl, F., Jäger-Waldau, A.: Assessment of floating
solar photovoltaics potential in existing hydropower reservoirs in Africa (2021). Renewable Energy, 169, pp.
687-69921

phasing out our dependence on Russian fossil fuels. This strategy proposes to seize theplentiful opportunities offered by energy technologies that run on sunshine. It sets out aroadmap to achieve this while allowing citizens to directly reap the benefits of solar energy
technologies and the EU industry to capture this growth opportunity, creating jobs and added
value for the EU.
With the European Solar Rooftops Initiative, the EU will make use of this simple andabundant resource to power our houses, offices, shops, and factories, by decisively lifting thebarriers that are still preventing that momentous shift from taking place.
The EU large-scale skills partnership for onshore renewables, including solar energy, willturn the growing bottleneck in the skilled workforce needed to manufacture, deploy andmaintain solar energy into an opportunity for new green jobs at the service of the clean energy
transition.
On the supply side the proposed EU Solar PV Industry Alliance should help diversify our
supply chains, retain more value in the EU and deliver efficient and sustainable products
based on next-generation technologies.
Amid the energy crisis and geopolitical tensions, the implementation of the Strategy and these
key solar initiatives proposed for the EU and its Member States is of utmost urgency. The
Commission invites the European Council, the Council and the European Parliament toendorse this Strategy, including its key initiatives.

22