Strategic position paper on strengthening the solar industry – impetus for the 2025 coalition negotiations
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Frankfurt, March 6, 2025 – Germany’s leading solar research institutions, the "Photovoltaic Production Equipment" division of the VDMA industry association, and the production planning company RCT Solutions have jointly published a position paper aimed at strengthening the German and European solar industry. This paper is now being sent to all parties represented in the Bundestag following the federal election. The goal is to incorporate the proposed measures into coalition negotiations and thereby lay the foundation for a resilient and competitive solar industry in Germany.
Photovoltaics is Key to Global Energy Supply
Scenario analyses of the future global energy supply identify photovoltaics as the most important technology. While Germany played a leading role in the solar industry in the early 2000s, a targeted industrial policy in China—first to promote solar manufacturing and later machinery—led to significant loss of market share for German companies along the value chain. As a result, Germany has lost its leadership role in the energy transition.
From Dependency to Resilience: Rebuilding the Solar Industry
This must change, as strong industry in key sectors presents both economic opportunities and enhances geopolitical resilience. A competitive solar industry in Germany reduces strategic dependencies and secures long-term potential for innovation and value creation. Europe’s world-leading photovoltaic research institutions and innovative machinery sector provide an excellent foundation to ensure sustainable production of high-tech photovoltaic products in Germany and Europe.
Prof. Dr. Andreas Bett, Director of the Fraunhofer Institute for Solar Energy Systems, states:
“With the PV PILOT project, we are working together with ISC, ISFH, HZB, RCT Solutions, and the VDMA ‘Photovoltaic Production Equipment’ division on a strategy to sustainably strengthen the solar industry in Germany through R&D, pilot technology, and turnkey solutions. Through the collaboration of key players, we are developing solutions that offer long-term support for the industry.”
Three Key Measures for a Resilient Solar Industry:
1. Expand Production of Innovative High-Tech Products in Germany/Europe
- Increase production capacity by expanding existing plants and building new ones.
- Leverage EU funding instruments such as the Net Zero Industry Act (NZIA) and the Temporary Crisis and Transition Framework (TCTF).
2. Utilize and Market Engineering Know-How Internationally
- Advance technological development to strengthen German engineering and compete globally.
- Promote closed value chains based on European resources to reduce dependencies.
- Use export promotion and demonstration platforms to establish “German/European Turnkey” solutions.
3. Expand R&D Infrastructure for an Innovative Solar Industry
- Restore research funding to at least €100 million per year (2019/2020 levels).
- Focus on innovation, especially in crystalline silicon, perovskite, thin-film, and tandem solar cell technologies.
Dr. Puzant Baliozian, VDMA, Head of Photovoltaic Production Equipment Division:
“With this initiative, we advocate for both solar research and industry in Germany—especially the machinery sector, which forms the backbone of the German PV value chain.”