Lifting trade sanctions against China could reduce the cost of solar panels by 30%, according to an investment firm.

Lowering the price of panels could bring benefits within weeks and may make solar Europe’s cheapest form of energy by 2020, the Sun Investment Group said.

The Europe Union (EU) introduced a tariff of up to 64.9% on Chinese solar panels in 2013 after accusing the Communist state of dumping panels on the European market to harm local manufacturers.

Its decision to lift remove minimum import price follows a gradual reduction in the tax, which began last September.

Carbon credit costs rising

Deividas Varabauskas, Chief Executive of Sun Investment Group, said: “Lifting of the trade duties was a decision long due.

“The whole photovoltaic sector is going to benefit greatly from this change.

“With the cost of carbon dioxide emission rights on the rise and the reduction of the cost of solar modules, solar will most likely become the most competitive form of energy in the bigger part of the EU by 2020.”

> Find out more about minimum import prices

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