March 19, 2026, 4:03 am | Read time: 3 minutes
Balcony power plants are considered an affordable entry into personal electricity production. However, several developments could soon drive prices up. A key factor from China is primarily responsible, with global consequences.
China Plays a Key Role in the Solar Market
China is the leading producer of photovoltaic modules, battery storage, and essential precursors for the solar industry, as Computer BILD (also part of Axel Springer) reports. Changes in its economic and industrial policies often have immediate effects on international markets.
Currently, there are increasing indications that solar systems, energy storage, and especially balcony power plants could become more expensive in the future. This is suggested by analyses from the Hamburg energy company 1Komma5° and industry assessments.
Elimination of Tax Benefits
A central trigger is a tax policy decision: China will completely abolish the current value-added tax benefits for the export of photovoltaic modules by April 1, 2026. The export tax refund was already reduced from 13 to 9 percent in December.
The consequences could be significant. “The elimination of export benefits alone will increase module prices by about 10 percent,” says Jannik Schall, product chief and co-founder of 1Komma5°. Higher purchasing costs are likely to be passed along the supply chain—all the way to end customers.
Rising Raw Material Prices
At the same time, key raw materials in the solar industry have been getting more expensive for months. Polysilicon, an essential raw material for solar cell production, is particularly affected. In China, several producers have reduced production to eliminate a previously created surplus.
Other components are also continuously becoming more expensive. Since September 2025, prices for solar cells, glass, and especially silver have been rising. The latter is essential for conductivity in solar cells. This trend intensified over the 2025/26 year-end, causing additional costs throughout the entire production chain.
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Impact on Germany
In the German market, the effects are only partially visible so far. In spring 2025, prices for complete photovoltaic systems were at a historic low. Since then, module prices have slightly increased, but significant price jumps have not yet occurred.
However, this could soon change. “In combination with rising raw material prices, we expect price increases of 15 to 20 percent for individual components,” says Schall. According to Schall, end customers will also be affected in the medium term.
Delayed Effects Along the Supply Chains
It is currently unclear when exactly and to what extent the price increases will reach consumers. What is certain, however, is that several developments are interlocking simultaneously. Political decisions in China, adjusted production volumes, and rising raw material costs are increasing pressure on the global solar market. The effects are likely to become visible in Germany with a delay—especially for balcony power plants and other small solar solutions.