The European Commission has launched a significant initiative! A subsidy of 3.4 billion euros is provided to support the EU solar manufactures.

Recently, the European Commission (EC) has launched an initiative valued at 3.4 billion euros (approximately 3.6 billion US dollars) aimed at supporting the development of "European low-carbon technologies," which includes the manufacturing of net-zero technologies and the production of electric vehicle (EV) batteries.

The project comprises two funding pools, which, although officially termed financing funds, essentially have the nature of subsidies. The larger of these funds is the 2.4 billion euro "Net-Zero Technologies Call," aimed at supporting projects in the manufacturing of renewable energy components, energy storage, geothermal heat pumps, and hydrogen production.

The projects will be evaluated based on several criteria, including their impact on greenhouse gas emissions, degree of innovation, project maturity, replicability, and cost-effectiveness. Applicants are required to submit their proposals by April 24, 2025. Successful applicants are expected to sign the funding agreements in the first quarter of 2026.

Innovation Fund call 2024

The program can also receive further support through an option called "Funding as a Service." Under this option, EU national governments can provide additional funding to projects that have already been selected under the "Net-Zero Technologies Call."

The second funding pool is a 1 billion euro fund dedicated to the manufacturing of electric vehicle (EV) batteries. This fund will support projects that produce "innovative" EV batteries or utilize "innovative manufacturing technologies, processes, and techniques."

IF 24

The European Commission and the European Investment Bank (EIB) have also launched a new partnership that includes providing a 200 million euro loan guarantee for the Invest EU program to support battery manufacturing across Europe.

The European Commission has also announced an additional 1.2 billion euros in funding from the revenues of the EU Emissions Trading System (ETS) to support the production of renewable hydrogen in Europe.

European Commission Executive Vice President for the Clean Transition, Teresa Ribera, stated: "By investing over 4.5 billion euros in clean technologies from the outset, the European Commission is demonstrating its commitment to achieving decarbonization targets and supporting the competitiveness of European industry in key strategic sectors."

"New resilience standards for hydrogen and batteries will enhance Europe's industrial leadership and competitiveness while strengthening the EU's strategic autonomy."

Supporting European Manufacturing

The injection of these latest funds comes as Europe is committed to strengthening its clean energy manufacturing sector, particularly in the areas of solar power and energy storage. 

In May of this year, the European Council adopted the Net-Zero Industry Act (NZIA), which aims to simplify permitting processes, improve market access for clean energy technologies, and support the scaling up of net-zero industries within the European Union. The act is designed to accelerate the deployment of clean energy technologies and enhance Europe's industrial competitiveness in key strategic sectors.

French companies Carbon and Holosolis are also planning to establish new solar manufacturing capacities in Europe. This move aligns with the broader European strategy to strengthen its clean energy sector and reduce reliance on imports for critical technologies.

Indeed, the relocation of Swiss manufacturer Meyer Burger from the European market to the U.S. market has dealt a significant blow to the perception of the viability of renewable energy manufacturing in Europe. This move was particularly notable because it came at a time when Europe is striving to strengthen its clean energy sector and reduce dependency on imports for critical technologies.