Germany is one of the world’s leading solar energy markets, but there is a major contrast between rapid solar installation growth and declining domestic solar panel manufacturing.
Current state of solar panel production in Germany
- Germany had about 117 GW of installed solar capacity by the end of 2025, with solar becoming one of the country’s top electricity sources.
- However, German solar module production has fallen sharply:
- 2023: ~3.5 million modules produced
- 2024: ~1.5 million modules produced
- First 3 quarters of 2025: production down another 60.6% year-over-year
Why production is falling
German manufacturers face strong competition from cheaper Asian imports, especially from China.
Key factors:
- Higher German labor and energy costs
- Large-scale Chinese manufacturing advantages
- Falling global panel prices
- Reduced profit margins for European producers
In 2025:
- About 88% of Germany’s imported photovoltaic systems came from China.
- Imports were worth nearly five times more than exports.
Solar growth in Germany despite manufacturing decline
Even though local production is shrinking, solar deployment continues to grow strongly:
- Germany added around 16 GW of new solar capacity in 2025.
- Solar generated roughly 87 TWh of electricity in 2025 and overtook lignite coal in Germany’s electricity mix for the first time.
- In April 2025, solar became Germany’s largest electricity source for the month.
Major German solar companies
Some notable German or Germany-based solar firms include:
- SMA Solar Technology — inverters and energy systems
- Meyer Burger — European solar cell/module manufacturing
- Qcells Germany — engineering and solar solutions
- Solarwatt — rooftop solar and storage systems
Outlook
Germany aims to reach about 215 GW of solar capacity by 2030, nearly double current levels.