- Switzerland has categorically rejected any plans to support industrial solar PV expansion
- It considers such an investment very expensive since the industry will continue to depend on imported raw materials
- Instead, the country is benefiting from low prices triggered by an oversupply in Europe
The Federal Council of Switzerland has rejected industrial policy measures to support or develop a solar PV industrial chain in the country. It believes Switzerland’s PV research and development (R&D) is very well positioned and will continue to make important contributions to the European PV industry.
This is the conclusion reached in a report approved by the council on June 7, 2024.
In the report, it does admit that the global PV supply chain is characterized by a strong dependence on Chinese production, and that it is particularly pronounced in Europe. Switzerland too imports a very large proportion of Chinese modules.
In 2023, PV module prices in Europe fell to a record low of $0.15/W, whereas the European manufacturing costs reached $0.30/W.
“PV expansion in Switzerland is currently benefiting from low prices, triggered by a massive oversupply on the European market. Subsidies from Switzerland to set up and expand its own PV module production would be expensive in such an environment. At the same time, no significant reduction in dependence is to be expected, as Swiss PV module producers would be dependent on raw materials from abroad,” concludes the report in German language.
The council believes that the effects of foreign subsidy measures on Switzerland as a business location are limited. Therefore, it should not take any industrial policy measures.
