Consumers have to pay more for photovoltaic modules because China creates the important VAT export discounts from April 1, 2026. “This will increase the module price by around ten percent,” says Jannik Schall, product manager and co-founder of the solar company 1Komma5°. “So if the price for a balcony power plant has so far been 600 euros, it may be closer to 660 euros over the course of the year,” says a 1Komma5° spokesman to FOCUS online.

The most important thing in brief:

• China cancels important export concessions
• No effects are noticeable yet
• As soon as the price increase arrives in Germany, photovoltaics will cost a tenth more
• Consumers can act quickly and secure cheaper modules

Roof photovoltaics with storage can cost between 10,000 and 22,000 euros, depending on the system size and equipment. Here consumers pay an additional 1000 or even 2200 euros. This extends the amortization period, i.e. the time until the saved electricity costs have recouped the purchase price.

China dominates the photovoltaics market

China is behind these export concessions world-leading manufacturer and supplier of photovoltaic and battery products. Last April, Chinese President Xi Jinping said that China had built “the largest and most complete production chain for new energy technologies.” In addition to renewable energies, he also meant supporting technology such as batteries.

China controls virtually all steps in the production of photovoltaics. According to the International Energy Agency, the “Middle Kingdom” had the following shares of global production in 2024:

• Installation: 61 percent
• Modules: 78 percent
• Wafer: 97 percent
• Polysilicon: 86 percent

Photovoltaic flood puts Chinese companies in “cycle of death”

This great strength was at the same time a significant weakness. Chinese solar manufacturers have massively overproduced. Export discounts were intended to strengthen the industry in international competition. Have Chinese modules Europe’s solar industry brought to the brink of destruction.

In 2025, the five largest solar companies in China reported losses of more than eight billion yuan (the equivalent of around one billion euros). Shortly afterwards, the British “Guardian” spoke of a “cycle of death” in which China’s solar industry finds itself.

Individual parts for photovoltaics are becoming more expensive

Almost 90 percent of all solar modules in Germany come from China, so the Federal Republic is heavily dependent on imports. Consumers can hardly escape inflation. 1Komma5° also warns that the individual parts for building solar modules are also becoming more expensive. Among other things, aluminum, which is currently 26 percent more expensive than it was in October 2025, includes silver and the battery raw material lithium carbonate.

Only polysilicon has seen a slight recovery. The material still costs 37 percent more than in summer 2025, but the price has fallen again after a January peak.

Consumers must anticipate price increases

For consumers, all this means: Anyone who is thinking about installing a photovoltaic system needs to hurry up. “As soon as the political measures, production cuts and high raw material prices are fully reflected in the supply chains, rising prices on the German market can be expected,” warns Schall.

But first, buyers should check whether it is even worth it. Is there enough sun shining on your roof or balcony? Do other buildings or tall trees cast a shadow where the solar module would be? Ideally, the roof or balcony faces south. For roofs, an angle of inclination between 30 and 45 degrees is optimal.

Before purchasing, consumers should follow these steps:

• Compare prices and get offers
• Clarify delivery time
• Check funding

Photovoltaics is particularly useful when consumers do not feed the electricity into the grid, but rather consume most of it themselves. This can be used to power a heat pump or a charging station for electric cars. An additional power storage unit allows the power to be used even at night or in cloudy weather.

This is how Germany promotes photovoltaic projects

KfW Bank provides the funding for solar projects Credit #270 available. This covers the construction, expansion and acquisition of systems for the use of renewable energies, including planning, project planning and installation costs. This also includes photovoltaic systems on roofs, facades or open spaces.

However, private individuals must feed in at least part of the electricity or heat generated. The interest rate may vary depending on location and economic circumstances.