According to the Financial Times, if businesses import a certain product from a nation that accounts for more than 65 percent of the EU market share for that product, governments are required to limit public support and consumer subsidies for renewable energy projects.
According to the legislation, European solar enterprises’ supply is not adequately diverse, with China accounting for 80% of the European market’s supply chain.
According to Dries Acke, policy director at SolarPower Europe, if we don’t want to risk delaying solar deployment, we need a bigger carrot, particularly in terms of funding solar installations in Europe. When European manufacturers must contend with some of the highest energy prices in the world, help for operating solar manufacturing was excluded from the subsidy rule amendment made last week.
The EU erected a record amount of solar panels last year—more than 40 gigawatts—while scrambling to find alternatives to Russian gas, according to the commission, which said it was able to do so by buying more than twice as many from China, according to the Financial Times.
According to Lukas Pauly, managing director of the German green technology business Enpal, installations would suffer if subsidies for non-EU products were reduced.
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According to Pauly, cutting subsidies would delay the switch to renewable energy until we have sufficiently increased capacity in Europe, as reported by the Financial Times.
The International Energy Agency estimated that European solar panels will cost more than a third more than comparable Chinese ones, with a price drop likely as EU production rises.
The Biden Administration’s Inflation Reduction Act, which offers $369 billion in subsidies for producers and users of green technology, has been contrasted to the Net Zero Industry Act as falling short.
According to Pascal Canfin, chair of the European Parliament’s environment committee, the IRA acts as an electric jolt to Europe, as reported by Bloomberg. We must make changes to streamline regulations and provide energy price stability for businesses.
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According to the Financial Times, the proposed Net Zero Industry Act does for exceptions in cases where there is an excessive cost difference of more than 10% between domestic items and those imported from abroad.
The EU should employ incentives rather than sanctions. According to Andreas Thorsheim, founder and CEO of European residential solar marketplace Otovo, adopting the current strategy without additional financial support will inevitably result in cutting off foreign supplies that we are not yet in a position to refuse. This statement was made to the Financial Times.