Amid shifting global trade dynamics and increasing geopolitical tensions, the urgency for Europe to re-establish domestic photovoltaic (PV) manufacturing for enhanced strategic autonomy has never been greater.

As over 90% of Europe’s solar components are currently imported from China, energy security, supply chain resilience and industrial sovereignty have become central themes in shaping the future of the continent’s renewable energy landscape.

Europe is striving to rebuild its PV manufacturing industry to support the continent’s low-carbon transition, to foster job creation and capture associated economic benefits. Policy initiatives and subsidy frameworks—such as the Net-Zero Industry Act (NZIA) and the EU Clean Industrial Deal—are designed to boost European domestic industrial production.

However, Asian manufacturers are producing PV components at significantly lower costs, making it difficult for European companies to remain competitive. One strategy to address this challenge is to focus on innovation. This is why Europe is increasingly investing in next-generation solar technologies that may help compete with Asian-manufactured products in performance and efficiency.

Dutch solar company MCPV is one such company. It is developing a 4-gigawatt heterojunction (HJT) solar cell manufacturing facility in the Netherlands. MCPV is also building a 2.5 GW module assembly plant in Spain, part of a competitive European PV manufacturing ecosystem based on next-generation HJT technology that offers the highest technically achievable solar energy conversion efficiency rate.

MCPV’s HJT cell manufacturing facility is in the Veendam region of the Netherlands, where the company has sufficient land, grid capacity, and infrastructure for both initial deployment and future expansion. Originally designed as a 3 GW facility, the plant will now reach 4 GW/year capacity and is planned to become operational by late 2027.

In Spain, the module factory will be built in Tudela, in the Navarra region, chosen for its access to low-cost renewable energy, industrial expertise, and proximity to Southern European markets.

MCPV Manufacturing Spain has recently received approval for €10 million in grant support from the Spanish Ministry for Ecological Transition to launch the project’s first phase. Production in the Netherlands will supply the HJT cells for integration at the Spanish assembly facility.

Strengthening Supply Chain Independence

The announcement of trade tariffs by the United States on April 3, targeting, amongst others, Asian solar manufacturers, has underscored the vulnerability of global solar supply chains. For Europe, these measures are a timely reminder of the strategic risks associated with overdependence on foreign suppliers, particularly in sectors critical to the energy transition.

Investing in European solar production not only strengthens local industry but also reduces exposure to price volatility, transport bottlenecks, and regulatory uncertainty, according to companies in the region.

According to the founder and CEO of MCPV, Marc Rechter, “The only way to ensure a secure and scalable solar supply chain in Europe is to establish advanced domestic manufacturing capacity anchored in innovation.”

HJT: A Solar Technology for the Future

While today’s solar panel market is mostly dominated by older types of technology, such as Passivated Emitter and Rear Cell (PERC) and Tunnel Oxide Passivated Contact (TOPCon), MCPV has chosen to focus on HJT for its long-term potential.

HJT-based solar cells typically enable the highest technically achievable energy conversion efficiency at the solar module level, outperforming other technologies, including PERC and TOPCon. In addition, the HJT manufacturing process is comparably simpler and more robust, making HJT a compelling choice for next-generation solar production, claims Rechter. HJT cells can yield more energy over their lifetime, while the HJT bottom cell is the perfect deposition layer for future tandem cell production, including perovskite.

Tandem solar cells are made by stacking two or more sub-cells, allowing them to absorb and convert a broader range of the solar spectrum into electricity more efficiently than single-junction cells.

Perovskite solar cells form a type of solar panel that is cheaper and easier to manufacture, with very high efficiency potential.

“These advantages make HJT the ideal solar cell platform for the next 20 years,” Rechter said. “Its unique design is perfectly suited for tandem solar panels, which are expected to bring the next big jump in how much energy solar panels can produce.”

National and European Backing

MCPV’s initiative is part of a broader Solar Industrial Strategy led by SolarNL, a coalition of Dutch solar manufacturers formed to advance national solar manufacturing capabilities within Europe.

In July 2023, the Dutch government awarded SolarNL €312 million ($341 million) in grants and a €100 million long-term loan through the National Growth Fund, marking the largest public investment in solar manufacturing in the country’s history.

The Solar Industry Strategy and program have since been integrated into the EU Net Zero Industry Act, approved in May 2024. It is the first initiative of its kind in Europe to combine manufacturing scale-up with technology development in a unified framework.

MCPV emphasizes that the timeline for project completion is directly tied to the implementation of European regulatory frameworks, particularly the EU NZIA and the Clean Industrial Deal. Clear and supportive regulation is critical not only for operational certainty but also for building investor confidence in Europe’s emerging solar manufacturing sector.

“The speed at which we can deliver these facilities is highly dependent on policy execution,” said Rechter. “Effective regulatory alignment sends a strong message that Europe is serious about industrial leadership in renewable energy.”