European Commission Proposes To Make Solar Panels Mandatory On New Buildings

  • The European Commission is planning to make solar panels mandatory on all new buildings in the European Union.
  • The “solar rooftop initiative” was proposed as part of the REPowerEU Plan published on 18th May with the goal of ending reliance on Russian fossil fuels by 2027.
  • The plan is a significant step in the decentralisation of the energy grid and supports &lsquobehind-the-meter’ solutions.

June 2022 London

The European Commission announced on the 18th of May that it plans to make the installation of solar panels mandatory for all new public commercial and residential buildings in the EU.

The ambitious proposal was included in the REPowerEU plan which detailed a vast number of changes designed to curb reliance on Russian fossil fuels by 2027 and thus catalysing Europe’s transition to renewable energy. It focused on three distinct pillars: energy savings diversification of energy supplies and accelerated roll-out of renewable energy.

Frans Timmermans who is leading the commission’s work on the European Green Deal said that the EU can “lead by example” and “show&helliphow quickly we can put solar panels on our buildings”. This strong sentiment was echoed by the EU commissioner for energy Kadri Simson who pledged that by 2030 solar energy will become the largest source of energy in the EU.

The message is clear that the European Union is serious about its promise to nullify its reliance on Russian fossil fuels and renewable energy appears to be central to its plan.

According to Nasdaq the publication of the REPowerEU plan saw solar-related ETFs receive significant interest in the days following the announcement. Investors may now be wondering whether it is an ideal time to look to the solar industry renewable energy investments such as ourSmart Energy ETF .

Gabriela Herculano Co-Founder and CEO of iClima Earth comments: “When developing iClima Smart Energy UCITS ETF (DGEN) we had conviction that security of supply and predictability of costs are the two key factors in developing meter solar solutions. Higher fossil fuel prices resulting from the invasion of Ukraine translates into demand destruction therefore making the decision to produce electricity at the point of consumption a very rational one.”

The REPowerEU plan accelerates the convergence of three of our largest industries namely electricity buildings and transportation all electrifying and embracing &lsquobehind-the-meter’ solutions. Because the solutions are digital and help optimize a much more complex and decentralized grid we call it Smart Energy. DGEN is the only fund that tells the story of local solar and behind-the-meter solutions reshaping the grid of the future.”

Tom Bailey Head of Content and ETF Research at HANetf comments:“The REPowerEU proposal has the potential to monumentally change to the way in which energy is generated throughout Europe. Decentralising the energy grid will not only provide reassurance through the nullification of reliance on Russian fossil fuels but will also grant European citizens autonomous control of their own power supply. In doing so we could see an acceleration in the transition to net-zero. According to Nasdaq the publication of the REPowerEU plan saw solar-related ETFs receive significant interest in the days following the announcement. Investors may now be considering whether it is an opportune time to look to the solar industry. HANetf has a range of funds tapping into the growth of the solar industry including iClima Smart Energy UCITS ETF (DGEN) TANN and ZERO.”

Please remember that the value of your investment may go down as well as up and past performance is no indication of future performance. When you trade ETFs your capital is at risk.