Solar Market and Cost Analysis

European Push for IRA-Like Incentives Wacker, Meyer Burger, NorSun, Norwegian Crystals, ECM Group, Fraunhofer ISE and Fraunhofer Center for Silicon Photovoltaics CSP issued a joint statement on January 11 as key stakeholders from the European solar PV community to demand urgent political action to revitalize a sustainable PV manufacturing industry in the continent. Their requests include: • - Top Line: public support of €0.10/W to €0.15/W of produced PV over next 10 years for both CapEx and OpEx at new and existing facilities Competitive energy price of around €40.0/MWh, especially important for the energy-intensive steps of the supply chain (e.g., polysilicon and ingot) At least 50% CapEx incentives for a limited initial production capacity of 30 GW throughout each step of the PV manufacturing supply chain "independent on origin of the equipment" - - - - At least 50% CapEx incentives for another 70 GW capacity for local European developed, manufactured and supplied equipment and consumables, decreasing to 10% within 5 years, lasting until 2033 Dedicated R&D funding program for equipment development for upstream applications at substantial height: 75% for companies and 90%-100% for R&F institutes An MPTC-like credit Local content incentivized proportional to its value in the module (similar to the ITC/PTC bonus credits) Adjustments to the state aid guidelines rules to allow member states for more and faster CapEx and OpEx support of PV manufacturing projects. Many of these requests are quite similar to the incentives available in the IRA. The joint statement cites the IRA and lower electricity costs in the United States as putting Europe at a disadvantage. • Ultimately, these incentives are intended to "resolve Europe's severe energy dependence." Sources: Taiyang News, PEI., Fraunhofer ISE press release, Joint-statement Re-establishing-an-upstream-solar-manufacturing-value-chain-in-Europe.pdf NREL 36

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