While Europe is trying to bring photovoltaic module production back from abroad, Luxembourg has had a local player for almost two years now with Solarcells.
“The idea is to relocate the sourcing of solar modules,” explains Michel Thein, managing director of Solarcells. The Luxembourg-based company manufactures its photovoltaic modules entirely in-house. “That’s what we call reshoring.”
Electricity generation from photovoltaics has skyrocketed in Luxembourg in recent years — from 119 GWh in 2018 to 360 GWh in 2024. This shows how important solar energy has become for the country’s decarbonization strategy.
However, both in Luxembourg and across Europe, the problem remains the same: dependence on third countries, particularly China. This dependence threatens the autonomy of European nations in a strategically vital sector.
Strict Quality Control
Solarcells was spun off from its parent company Socom, a major player in the national electrical installation sector, nearly two years ago.
“Our goal is to have full control over the quality of the modules installed in Luxembourg. That’s why we carry out quality control from A to Z ourselves. Often, this is insufficient when you buy from far away. At the same time, we want to offer customer service that is accessible and customer-oriented,” says Michel Thein.
The photovoltaic modules are entirely produced on the company’s 100-meter-long production line in Hollerich — from cutting the cells to laminating them in ovens at 135 °C. “Buying pre-assembled modules and just sticking our label on them is out of the question,” insists Thein. Quality is checked at five control points along the entire production chain. “Our own ‘recipe’ ensures that the modules can remain defect-free on rooftops for 25 to 30 years,” he adds.
European Suppliers
When it comes to raw materials, Solarcells relies as much as possible on a European supply chain and partners providing high-quality materials. However, there’s one drawback: the photovoltaic cells themselves. “At the moment, Europe doesn’t have the means to manufacture photovoltaic cells,” Thein notes. “That’s a major issue — in terms of know-how, production capacity, technology development, and the resilience of the supply chain. On top of that, there’s the risk of being dependent on a single player who is not necessarily a reliable partner.”
Tough Competition
In less than two years, Solarcells — which currently operates only in Luxembourg — has already installed 5 MW of photovoltaic capacity in the country (out of a total of 394 MW in 2024 in the Grand Duchy).
But competition is fierce. There are more and more European players, and above all, Chinese prices remain unbeatable. “Because of dumping, Chinese modules are sometimes sold below production cost,” says Thein.
More Expensive but Higher Quality
Solarcells modules are on average five to ten percent more expensive, but they stand out for their quality and long lifespan — unlike cheap modules. “Those who buy cheap usually buy twice,” Thein remarks.
It will take time, however, for consumers to realize that short-term savings aren’t the solution. “Unfortunately, the problem with Asian modules sold for €30 apiece won’t show up tomorrow or the day after, but in five to ten years, when many of the installations from the past two years will have to be replaced,” explains Thein. “We’re already seeing this with some large-scale installations, where it turns out that the modules don’t match the technical specifications they were sold under.”
More Products to Come
Despite the challenges, Solarcells is determined to stay the course. “It’s a daily battle. Things aren’t perfect, but they’re not bad either. We’re managing to keep our heads above water. We’re moving forward,” says Thein.
The company plans to expand its product range, adding agri-PV systems — solar modules serving as shade structures for fields — as well as custom modules: tailor-made, more transparent, and less reflective, for projects along highways or at airports.
In the long term, Solarcells aims to expand beyond Luxembourg, targeting the French market. Meanwhile, demand in the Grand Duchy is expected to remain steady as the country seeks to reduce its dependence on imported electricity.
The government’s planned introduction of pre-financing for PV installations should also give the sector a new boost.
