China solar powered generator in Germany

Events in Germany triggered the entry of private local and international firms into the Chinese solar manufacturing sector, which sought to satiate Germany's demand. As a result of this increasing demand China's manufacturing capacity grew.

The value of the imports of solar power equipment in Germany in 2022 was more than twice as high as the value of the exports from the country. Exports of solar cells, solar modules and the like amounted to EUR 1.4 billion with Austria being the largest market with a share of 14% followed by the Netherlands and Italy each with 11%.

Beginning in the late 1990's the story of China's rise to dominance in the solar PV market began with modest rural electrification programs. This soon changed. Political developments in Germany, particularly the Green Party's governmental debut in 1998, created government driven demand for renewables.

In 1995, Japan and the U.S. dominated global installed capacity of solar with 20% and 44% shares respectively. In 2015 China became the global leader in installed photovoltaic solar capacity (43 GW), surpassing former leader Germany whose installed capacity stood at 40GW.

Last year, Germany imported solar cells, solar modules and other equipment for the solar industry worth around EUR 3.6 billion (USD 3.84bn) with imports from China accounting for just over EUR 3.1 billion of the total. The second most important country of origin was the Netherlands with imports worth only EUR 143 million.

The growth of China's solar industry is not the result of the invisible hand of the market. It is the outcome of a series of national policies that showed a sustained commitment to drive solar adoption.