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EU’s Net-Zero Industry Act (NZIA) Takes Effect: How Can Chinese Solar Giants Turn Localization Rules into Opportunities?


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In July 2024, the European Union officially enacted the Net-Zero Industry Act (NZIA), designating solar PV as a “strategic technology” and mandating that 40% of clean energy equipment must be produced locally by 2030. While this poses challenges, it also opens doors for agile global players—especially Chinese solar leaders.

Key Policy Highlights:

  • Local Content Rule: 40% of solar panels and inverters sold in the EU must be made in Europe;

  • Fast-Track Permits: PV project approvals streamlined to 6 months;

  • Funding Priority: EU Innovation Fund to subsidize local supply chains.

Strategies for Chinese Companies:

  1. Local Production: Leaders like LONGi and Trina Solar can expand EU-based manufacturing to bypass trade barriers;

  2. Tech Partnerships: Collaborate with European firms on TOPCon, perovskite tandem tech to meet sustainability criteria;

  3. Offtake Agreements: Secure long-term contracts with utilities (e.g., EDF, RWE) to lock in market share.

Call to Action:
The NZIA is de facto ‘green protectionism,’ but Chinese companies still dominate in cost and R&D. A ‘Made-in-Europe-with-China-Tech’ model could be the winning formula. Is your business ready for the EU’s new rules? Contact Sunforson at info@sunforson.com for tailored cost-effective and high-quality photovoltaic system mounting solution.