On Friday, Italy initiated a significant shift in the clean energy landscape by awarding over 1.1 gigawatts of solar capacity across 88 projects, exclusively using non-Chinese equipment. This auction, which took place in December 2025, highlighted Europe's ongoing struggle to diversify its solar supply chain, as over 90% of solar modules in the EU are still sourced from China.
India's Solar Manufacturing Growth
India has made impressive advancements in solar photovoltaic (PV) module manufacturing, reaching a capacity of 172 gigawatts (GW) by early 2026. The country's cell capacity has nearly tripled to 30 GW, largely fueled by the government's "Make in India" initiative, which has reshaped the solar sector.
Sanjay Varghese, a senior executive at ReNew, noted, "Five years ago, all solar modules being installed in India were being imported from China. But today, all modules, and about 50% of the cells being consumed in India, are made in India." This shift indicates India's ambition to establish a self-sufficient clean energy landscape.
Challenges in Replacing Chinese Supply Chains
Despite these advancements, experts caution against overstating India's readiness to replace China in the solar supply chain. Jochen Rentsch from the Fraunhofer Institute for Solar Energy Systems pointed out that around 99% of the world's photovoltaic wafers are still produced in China, creating a critical bottleneck for India's solar ambitions.
Rentsch also highlighted that Chinese manufacturers can undercut production costs, making it challenging for new entrants to compete economically. While India has achieved self-sufficiency in cells and modules, it still relies on China for vital components such as wafers and polysilicon.
Europe's Renewable Energy Goals and Dependency
Europe faces a different challenge. Germany aims to source 80% of its electricity from renewables by 2030, necessitating substantial imports of clean-energy hardware, much of which is tied to Chinese supply chains. The German solar association, BSW-Solar, reported that domestic module production has dwindled to a niche market.
To address this, advocates like Dries Acke of SolarPower Europe argue for a European version of India's PLI scheme, which would incentivize local manufacturing. However, the EU's forthcoming Industrial Accelerator Act has disappointed many by allowing broader definitions of "Made in Europe," potentially undermining true local production.
- Italy awarded 1.1 GW of solar capacity in December 2025.
- India's solar module capacity reached 172 GW by early 2026.
- Germany aims for 80% renewable energy by 2030.
- Over 90% of EU solar modules are imported from China.
- 99% of photovoltaic wafers are produced in China.
India's geographical advantage with its west coast ports connecting efficiently to Europe via the Suez Canal may shorten delivery times compared to East Asian competitors. However, logistical advantages alone may not resolve the underlying cost structures that favor Chinese manufacturing.
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by DW English. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
