China dominates EU solar photovoltaic (PV) market: 98% of solar panels come from China

The EU imported €19.7 billion worth of solar photovoltaic panels from China in 2023.

In 2023, the EU imported €19.7 billion worth of solar panels, €3.9 billion of liquid biofuels, and €0.3 billion worth of wind turbines from extra-EU countries, according to the Eurostat data.
The European Union’s green transition is hampered by its dependence on China for solar photovoltaic panels.
Despite efforts to reduce energy dependence, 98% of solar panel imports in 2023 came from China. This is due to lower production costs in China and the EU’s decision to lift tariffs on Chinese solar panels in 2018. According to Eurostat data, a staggering 98% of solar panels imported into the EU in 2023 came from China.

In monetary terms, the EU imported €19.7 billion worth of solar PV panels from China in 2023. Although this represents a decrease from the €22.6 billion imported in 2022, the number of imported panels actually increased by 5%, demonstrating continued growth in demand for EU solar energy infrastructure.

In 2018, China exported solar panels worth just under €4 billion 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 shift 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), production costs for solar PV panels in China are 35-65% lower than in the EU. Manufacturing of integrated cells and modules in the EU is estimated to be 70-105% more expensive than in China, largely due to higher capital expenditure (CapEx) and operating costs. The IEA reports that capital expenditure for solar PV production is three times higher in the EU than in China, further increasing the EU’s reliance on imports.

Although the EU remains a net importer of solar panels, in 2023 it exported €900 million worth of solar panels, mainly to Switzerland and the UK, and smaller quantities to countries such as Serbia and North Macedonia. EU solar panel exports increased by 19% in value and 37% in volume over the year.

In addition to solar panels, the EU is experiencing growth in the wind energy sector. Wind turbine exports saw the largest growth in value in 2023, increasing by 49%, while export volumes rose by 26%. However, in terms of imports, the EU mainly sources wind turbines from India (59%) and China (29%).

Despite the availability of cheaper solar panels and favourable EU legislative frameworks, barriers remain, notably limited access to electricity grids for new solar installations. As the EU continues its green transition, finding ways to reduce its dependence on non-European imports will be crucial to achieving energy independence.