In Brussels, the European Commission has published a draft Industrial Accelerator Act (IAA), aimed at supporting the decarbonisation of European industry, enhancing the EU’s competitiveness, and promoting the production of critical materials, such as solar panels, to be “Made-in-EU.” The proposed legislation is now set to be negotiated and refined by the EU co-legislators, which include the European Parliament and the Council of the European Union.
In response to the announcement, SolarPower Europe released a statement highlighting the significance of the draft Act. Dries Acke, Deputy CEO of SolarPower Europe, described the IAA as a “watershed moment for industrial policy in Europe.” He noted that the legislation would allow EU countries, for the first time, to give preference to EU-manufactured solar and battery storage systems in parts of public auctions, procurement processes, and support schemes.
According to Acke, the focus on Made-in-EU solar inverters and cells strikes a balance between encouraging the reshoring of strategically important solar components while avoiding overly restrictive requirements at an early stage. This approach is expected to support European manufacturers without limiting the broader deployment of affordable solar energy. However, he emphasized that “Made-in-EU” must truly mean products made within the EU and the European Economic Area (EEA).
At the same time, Acke expressed concern over the rules for battery energy systems. He pointed out that the proposed requirements are stricter and take effect too early, which could slow the urgent expansion of battery energy storage systems. Battery storage is critical for increasing Europe’s use of domestically produced renewable electricity and reducing dependency on expensive fossil gas imports. He stressed that accelerating battery storage is essential to achieving the EU’s top priorities of energy security and industrial competitiveness.
Acke also highlighted the importance of simplifying the legislation to ensure it can be implemented effectively and consistently across all EU member states. Reducing administrative burdens is necessary to uphold the goals of the Single Market and enable smooth execution of the IAA. The Industrial Accelerator Act was published alongside several accompanying documents, including the Annexes to the IAA, the Subsidiarity Grid, the Impact Assessment Report, the Executive Summary of the Impact Assessment, and a factsheet.
The Act introduces a comprehensive set of measures designed to boost industrial capacity and accelerate decarbonisation in strategic sectors. Key measures include streamlining permitting for industrial and energy-intensive decarbonisation projects, introducing Made-in-EU and low-carbon requirements in public procurement, auctions, and support schemes for selected products and net-zero technologies, and imposing stricter conditions on foreign direct investment in emerging strategic sectors. These conditions include ownership limits, mandatory EU joint ventures, local R&D spending, IP licensing, workforce requirements, and sourcing obligations.
The IAA also establishes designated industrial acceleration areas that receive preferential access to finance, materials, skills, energy infrastructure, and additional permitting benefits. The Act amends the existing Net-Zero Industry Act by introducing origin requirements for public procurement, renewable energy auctions, and support schemes, as well as cybersecurity and high-risk supplier regulations. Notably, battery energy storage systems (BESS) are included in the updated renewable energy auction requirements.
For solar photovoltaic (PV) projects, the proposal mandates that three years after the IAA enters into force, public procurement, renewable energy auctions, and support schemes must include PV inverters and solar cells, or equivalent components, that are manufactured in the EU. For BESS, the proposal sets a phased “Made in Europe” requirement. One year after entry into force, BESS must originate in the EU, and systems larger than 1 MWh must include an EU-made battery management system.
Three years after entry into force, these systems must also incorporate EU-manufactured battery cells and at least one additional key component. Overall, the Industrial Accelerator Act represents a significant step by the European Commission to strengthen domestic industrial capacity, accelerate decarbonisation, and support Europe’s energy transition, while ensuring that strategic technologies are manufactured within the EU.
Taken from Solar Quarter, written by S.S. Dev on 05th March 2026