[SMM PV News] EU Proposes 'Industrial Accelerator Act' Mandating Local Content for Solar and BESS

Published: Mar 6, 2026 11:15

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The European Commission's newly drafted Industrial Acceleration Act (IAA) requires publicly subsidized clean energy projects to use EU-manufactured components. Photovoltaic projects must integrate EU-made inverters and solar cells within 3 years, a transition period praised by some for balancing reshoring but criticized by others as too slow to counter Chinese competition. Besides, BESS over 1 MWh face an aggressive timeline requiring EU-made battery management systems within 1 year and EU cells within three, which industry experts warn could stall storage rollouts. Additionally, the Act enforces strict barriers on strategic investments over €100 million from nations that 'control more than 40% of global capacity,' mandating technology transfers and capping foreign equity ownership at 49%.

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