EU solar manufacturing under the Net-Zero Industry Act 2026: where the gigafactories are
The EU Net-Zero Industry Act (NZIA) targets 40% of EU solar demand to be met by domestic manufacturing by 2030. As of 2026, EU solar manufacturing capacity sits at ~12 GW of modules and ~6 GW of cells — far below the demand of ~70 GW/year. This guide maps EU solar manufacturing capacity, names the active gigafactory projects, and explains the NZIA's funding and procurement mechanisms.
In 50 words: The EU Net-Zero Industry Act (NZIA) targets 40% of EU solar demand to be met by domestic manufacturing by 2030. As of 2026, EU solar manufacturing capacity sits at ~12 GW of modules and ~6 GW of cells — far below the demand of ~70 GW/year. This guide maps EU solar manufacturing capacity, names the active gigafactory projects, and explains the NZIA's funding and procurement mechanisms.
The EU Net-Zero Industry Act is Europe's version of the US Inflation Reduction Act for solar manufacturing — but with different tools. Where the IRA throws cash subsidies at US solar producers, the NZIA combines procurement preferences, fast-track permitting, and funding instruments to push EU solar manufacturing toward 40% domestic share by 2030. This guide maps the current state of EU solar manufacturing capacity and the trajectory under NZIA implementation.
Table of contents
- What the Net-Zero Industry Act actually does
- EU solar manufacturing capacity in 2026: the numbers
- Active EU solar manufacturing gigafactories
- Why EU solar manufacturing collapsed in the 2010s
- NZIA implementation: procurement preference + fast-track permitting
- The funding gap: where the money comes from
- NZIA vs IRA: how the two regions compare
- Frequently asked questions
1. What the Net-Zero Industry Act actually does
The NZIA (in force from 2024) sets binding targets:
- 40% of EU annual demand for strategic net-zero technologies to be met by EU manufacturing by 2030
- Solar is on the list of strategic technologies (alongside wind, batteries, electrolysers, heat pumps, etc.)
- Net-Zero Strategic Projects get fast-track permitting (max 9–12 months) and priority status
- Public procurement must consider non-price criteria, including manufacturing in EU, for solar in public tenders
- Renewable energy auctions (national level) must include non-price criteria favoring EU-manufactured equipment
The NZIA does NOT include direct production subsidies the way the US IRA 45X credit does. EU solar manufacturers must combine NZIA market-pull mechanisms with funding from the Innovation Fund, InvestEU, national programs, and private capital.
2. EU solar manufacturing capacity in 2026: the numbers
Current EU solar manufacturing capacity (operating, Q1 2026):
| Stage | EU operating capacity 2026 | Demand 2026 | |---|---|---| | Polysilicon | ~7 GW equivalent | ~70 GW (10% domestic) | | Wafers | ~2 GW | ~70 GW (3% domestic) | | Cells | ~6 GW | ~70 GW (9% domestic) | | Modules | ~12 GW | ~70 GW (17% domestic) | | Inverters | ~50 GW | ~70 GW (71% domestic) |
The gap is largest at the wafer and cell stages. Module assembly is partly EU-based but uses imported cells. To meet the NZIA 40% target, EU needs to triple module capacity AND massively expand cells and wafers — challenging given the 2030 horizon.
For US comparison, see top US solar manufacturers ranked 2026.
3. Active EU solar manufacturing gigafactories
| Project | Country | Stage covered | Nameplate target | Status | |---|---|---|---|---| | Meyer Burger | Germany (closed) → Goodyear, AZ USA | HJT cells + modules | 2 GW (was DE; now US-focused) | EU manufacturing reduced post-2024 | | Enel 3Sun (Catania) | Italy | HJT cells + modules | 3 GW | Operating | | Holosolis | France | TOPCon cells + modules | 5 GW | Under construction (2026 ramp) | | ES Solar (Carbon One Solar) | Spain | Cells + modules | 3 GW | Late development | | FuturaSun | Italy | Modules | 2 GW | Operating | | Solitek | Lithuania | Modules | 1 GW | Operating | | Recom Sillia | France | Modules | 1 GW | Operating | | Bila Solar | Romania | Modules | 1 GW | Operating | | Aleo Solar (Astronergy) | Germany | Modules | 0.7 GW | Operating | | Wattkraft / Heckert Solar | Germany | Modules | 0.5 GW | Operating |
The standout project: Holosolis in France, targeting 5 GW of fully integrated TOPCon cell + module capacity by 2027. Backed by EIT InnoEnergy and IDEC, supported by French sovereign funds. If executed on schedule, it would be the largest single EU solar manufacturing facility.
4. Why EU solar manufacturing collapsed in the 2010s
EU once had ~20 GW of solar manufacturing capacity (~2010). It collapsed because:
- Chinese state-backed solar manufacturing scaled at unprecedented pace 2010–2015
- EU anti-dumping measures expired in 2018; Chinese modules flooded EU at ~€0.20/W
- High EU energy costs (especially post-2022) made polysilicon manufacturing structurally uncompetitive
- Lack of demand-side support (vs Chinese state procurement) starved EU producers
- Meyer Burger's Frankfurt/Bitterfeld closure in 2024 marked the low point — they moved production to Arizona to access IRA incentives
The Net-Zero Industry Act is the EU's attempt to reverse this. Whether it works will be visible by 2028.
5. NZIA implementation: procurement preference + fast-track permitting
Two practical NZIA mechanisms affect EU solar manufacturing economics in 2026:
Strategic Project status:
- Solar manufacturing projects can apply for Strategic Project designation
- Approved projects get max 9-month permitting (vs. typical 3+ years)
- Priority status in funding programs
- Coordinated environmental review
Non-price criteria in public tenders:
- EU member states must implement non-price criteria in renewable energy auctions
- Criteria include: cybersecurity, responsible business conduct, EU manufacturing share, resilience contribution
- Up to 30% weight on non-price criteria
- France and Germany have already implemented in their 2025–2026 solar auction rounds
The non-price criteria are the most important mechanism in practice. They make EU-manufactured modules competitive in EU public procurement despite costing 20–40% more than Chinese imports.
6. The funding gap: where the money comes from
The NZIA doesn't fund EU solar manufacturing directly. Funding comes from:
- EU Innovation Fund: €40 billion through 2030, multiple solar manufacturing grants awarded
- InvestEU: guarantees for private investment in EU solar manufacturing
- National funding programs: Germany's KfW, France's Bpifrance, Spain's CDTI provide debt and equity
- EIT InnoEnergy: backs early-stage EU solar manufacturing companies
- Private capital: increasingly active given Chinese trade tensions and NZIA market-pull
The funding gap is real. Holosolis required ~€1.5 billion in equity + debt; sourcing this in Europe took 18+ months. Compare to US IRA where 45X credits provide $0.07/W ongoing operating subsidy that makes financing easier.
7. NZIA vs IRA: how the two regions compare
| Dimension | EU NZIA (2024) | US IRA (2022) | |---|---|---| | Direct subsidy per watt | €0 | $0.07/W (45X manufacturing credit) | | Market pull via auctions | Yes (30% non-price weight) | Yes (10% domestic content adder) | | Fast-track permitting | Yes (9–12 month max) | No federal equivalent; state-by-state | | Funding instruments | Innovation Fund, InvestEU, national | Direct cash + tax credits | | 2026 EU solar manufacturing | ~12 GW modules | ~25 GW modules | | 2030 target | 40% domestic | No formal % target |
The IRA delivered faster manufacturing capacity buildout in 2022–2026 because direct cash subsidies are simpler than the NZIA's procurement-pull mechanisms. The NZIA model may prove more durable politically but slower in scale-up.
8. Frequently asked questions
What is the EU Net-Zero Industry Act?
A 2024 EU regulation setting a 40% domestic-manufacturing target for strategic net-zero technologies (including solar) by 2030, using procurement preferences, fast-track permitting, and funding instruments.
How much solar manufacturing does the EU have in 2026?
~12 GW of module capacity, ~6 GW of cells, ~2 GW of wafers. Far below the ~70 GW annual EU solar demand.
Will the EU meet the NZIA 40% solar target by 2030?
Probably not on solar specifically. Current trajectory suggests 25–30% domestic share by 2030 — meaningful improvement but short of the 40% target.
Who is the largest EU solar manufacturer in 2026?
Enel 3Sun in Catania, Italy (3 GW HJT cells + modules) is currently the largest fully-integrated EU producer. Holosolis (France) will likely take #1 once ramped to 5 GW by 2027.
Why did Meyer Burger leave the EU?
Meyer Burger closed German manufacturing in 2024 and moved to Arizona to access the US IRA's 45X manufacturing credit ($0.07/W direct subsidy). EU NZIA at the time didn't offer comparable economics.
Is the EU subsidizing solar manufacturing like the US IRA?
Not directly. The NZIA uses market-pull mechanisms (procurement preferences, permitting fast-tracks) rather than per-watt production subsidies.
What about wafer and cell manufacturing in EU?
The biggest gap in the EU solar supply chain. Holosolis (France) and ES Solar (Spain) are the main new entrants targeting integrated cell + module capacity by 2027–2028.
Researched and drafted with AI assistance; reviewed and edited by Priya Sharma. Companion reading: solar panel price Germany 2026, EU CBAM impact on solar imports 2026, solar repowering Europe 2026, top US solar manufacturers ranked 2026. Browse more solar coverage. Standards: editorial, AI disclosure.