Once loudly claiming they would drive Chinese photovoltaics out of Europe, yet less than a year later, their cherished homegrown factory has already collapsed!

According to Bloomberg on May 19 local time, French solar startup Carbon officially announced the termination of its plan to invest approximately RMB 13.45 billion in building a solar panel manufacturing facility in southern France. The news sent shockwaves through the energy sector and delivered a harsh wake-up call to Europe’s high-profile push for energy transition. Who could have imagined that this flagship project—once hailed by the French government as a lifeline for national revival—would fail so quickly after just a brief trial period.

This situation is truly heartbreaking. Two years ago, Europe was rife with xenophobia in the PV industry, with many European politicians holding biased views toward China’s solar sector, openly calling for Chinese solar products to be expelled from the European market.

To reduce dependence on Chinese solar products, the French government raised the loud slogan of “energy sovereignty,” specifically selecting two domestic companies—Carbon and HoloSolis—to become the “twin stars” countering China.

At that time, the French government showed unwavering determination. To boost domestic industries, it offered generous preferential policies: taking full responsibility for financing channels, providing substantial subsidies, and even personally securing product orders—offering comprehensive support to domestic solar enterprises. Their goal was simple: to build an independent domestic PV supply chain, break free from trade ties with China, and forcibly establish what they called “European energy sovereignty.”

The Carbon project was designated a “national major interest project,” located in the Bouches-du-Rhône department in southern France, with plans to construct a 5-gigawatt annual production capacity—from solar cells to finished modules—creating a fully localized PV industrial chain.

Back then, European media rejoiced, hailing it as the “light of hope” for Europe’s independence from Chinese reliance. Many politicians publicly declared, “China’s solar products must leave Europe,” as if, with mere government support, domestic firms could instantly rise up and completely squeeze out Chinese products from the European market.

But reality soon dealt them a hard slap. In a statement posted on LinkedIn, Carbon clearly stated the core reason for the project’s termination: “unclear potential market outlook and uncertainty regarding policy coordination between the EU and France, making it impossible to secure required financing within a reasonable timeframe.”

In short, the government had painted an overly ambitious vision, but shifting policies scared off investors—leading to the project’s collapse.

The underlying issue is actually quite simple. European solar policies have been like a rollercoaster, constantly changing direction. The Net-Zero Industry Act passed in June 2024 aimed to promote supply chain diversification, yet failed to deliver any concrete supportive measures.

By 2026, the newly introduced Industrial Acceleration Act changed course again: all countries with free trade agreements with the EU were included in the definition of “Made in Europe,” while the priority procurement policy for domestic products was delayed until 2030.

This constant flip-flopping left businesses utterly confused. Carbon spent four years investing heavily in manpower and resources, only to see their promised subsidies and orders vanish due to repeated policy changes.

Even more troubling is that domestically produced European PV modules cost significantly more than those made in China. Data shows German-produced solar panels are about 40% pricier than Chinese ones—mainly due to high energy and labor costs. Without strong government subsidies, these domestic firms simply cannot compete with Chinese products.

In contrast, China’s solar industry has steadily developed over the years, establishing a complete industrial chain from polysilicon and wafers to cells and modules, capturing over 80% of global market share.

Ninety-eight percent of PV modules sold in the European market rely on imports from China; in the inverter market, Chinese companies control as much as 80%. Chinese firms not only offer lower costs but also continuously advance in technology. Companies like Longi, Jinko, and Trina have earned global recognition for their product quality and cost-performance ratio.

What’s even more ironic is that while Europe loudly proclaims its desire to reduce dependency on China, it remains fundamentally reliant on Chinese solar products. In the first quarter of 2026, China’s exports of solar modules to Europe reached $8.62 billion—up 16.8% year-on-year—and accounted for 38.34% of China’s total module export volume.

Even Carbon itself previously relied heavily on core components manufactured in China. Now that the project has failed, Europe may have no choice but to turn back and purchase Chinese products to achieve its energy transition goals.

The shutdown of this multi-billion-euro factory in France is not merely the failure of one company—it marks a setback for Europe’s entire energy autonomy initiative. European politicians, driven by ideological bias, ignore market laws and attempt to forcibly intervene in industrial development through administrative means. Relying solely on government subsidies and policy support to artificially nurture domestic enterprises violates the fundamental principles of market economy, and failure was inevitable.

There are no shortcuts in industrial development. China’s success in the solar industry stems from long-term technological accumulation, a mature industrial ecosystem, and relentless refinement through market competition.

Europe refuses to face up to the gap, unwilling to set aside prejudice and pursue cooperation, instead obsessively chasing “de-Chinaization.” Blindly rejecting high-quality products will only make their path toward energy transition increasingly difficult.

Now, with projects abandoned and funds lost, what remains for France and Europe is nothing but ruins. This incident sends a clear message to everyone: no industry can thrive on slogans and prejudice alone. Only by respecting markets and adhering to facts can sustainable development be achieved.

Original article: toutiao.com/article/1865759858408456/

Disclaimer: The views expressed in this article are solely those of the author.