In Germany, 435,000 new balcony photovoltaic systems will be added in 2024, which is more than the total number of new balcony photovoltaic systems in all previous years. This seemingly tiny market is developing rapidly with a compound growth rate of 18.7% per year, becoming the most potential new growth pole in the global photovoltaic industry.

Facts speak louder than words, and balcony photovoltaics are quietly penetrating into people’s lives.

According to research and statistics from HengCe Consulting, the global balcony photovoltaic module market sales are expected to reach 27.77 billion yuan in 2031, with a compound annual growth rate (CAGR) of 18.7% (2025-2031).

QYResearch research data also shows that the global balcony photovoltaic power generation system market size will be approximately US$1.023 billion in 2024, and is expected to reach US$3.52 billion in 2031, with a compound annual growth rate of 19.2% during the period.

This explosive growth stems from the unique positioning of balcony PV: it allows urban residents, renters, and apartment dwellers who would otherwise not be able to install traditional rooftop PV to easily generate clean electricity.

Europe leads the way, policies drive market leaps

Europe is at the forefront of the world in the development of balcony photovoltaics, and various countries have introduced supporting policies.

As the largest market for balcony photovoltaics in Europe, Germany has registered a total of 435,000 units of balcony photovoltaics in 2024, with an installed capacity of approximately 426MW. The installation volume in one year exceeds the total in the past years.

As of the end of 2024, the cumulative number of registered balcony photovoltaic installations in Germany has exceeded 780,000 units, and the average installed capacity per household has also increased from 800W in 2023 to nearly 1kW in 2024.

The German government passed a new amendment to the Renewable Energy Act (EEG), canceling the registration requirement with the grid operator for plug-in photovoltaic systems with a total installed capacity not exceeding 2kW and a total inverter output power not exceeding 800VA.

Germany has also simplified the legal procedures for tenants to install balcony photovoltaics, stipulating that “tenants’ installation of balcony photovoltaics cannot be refused by the landlord or association for unreasonable reasons.” Other countries have followed suit: Austria has simplified the approval process; France has implemented a “zero approval” policy, allowing users to install without applying for a license; Italy has introduced subsidies and tax relief policies; Poland has implemented the “My Electricity” subsidy program. The UK will relax restrictions on balcony photovoltaic installations starting in 2024, allowing plug-and-play equipment to be connected to the home grid.

Chinese market, policies and standards are gradually improving

Although China’s balcony photovoltaic market started a little late, it is rapidly following up. In July 2025, the National Energy Administration issued the “Notice on Publicly Soliciting Opinions on the Development and Revision Plan of Industry Standards and Foreign Language Translation Plans to be Established in the Energy Field in 2025″, and 801 new standards were approved. The most eye-catching one is the introduction of two product and engineering standards such as “Technical Requirements for Balcony Photovoltaic Power Generation Systems” and “Technical Specifications for Application of Balcony Photovoltaic Systems” to provide a basis for the development of balcony photovoltaic projects.

Faced with the huge potential of this emerging market, many companies have rushed to develop.

According to a report by Hengce Consulting, major manufacturers in the international market include Dianke Power, Tesla Energy, LG Energy, Enphase Energy, Fronius, etc.
In the Chinese market, Skyworth, Hemai, Yuneng, Deye, etc. are all actively seizing the balcony light and storage market. The balcony photovoltaic product “Nengliang Station” launched by Skyworth Photovoltaics has been put into use on the market. CITIC Bo also exhibited products such as balcony photovoltaic modules and light storage and charging parking spaces at the 2025 RE+ exhibition in the United States, demonstrating its “tracking +, green power +” diversified solutions.

Balcony photovoltaic systems are undergoing rapid technological iteration and innovation. The products currently on the market are mainly divided into two types: integrated and split.

In terms of power, balcony photovoltaic systems are usually divided into three levels: less than 600W, 600W-800W and more than 800W, which can meet the needs of different families.

Considerable rate of return

Balcony photovoltaic is not only environmentally friendly, but also has considerable economic benefits. According to data from the German Energy Agency (DENA), a 2kW balcony photovoltaic system paired with a 2kWh energy storage battery can reduce grid electricity costs by 64% every year, and the investment payback period is only 4 years. In the UK, the mandatory photovoltaic + energy storage policy for new residences will be implemented in the autumn of 2025. It is expected that households will save an average of 1,342 pounds in electricity bills per year.

In the Chinese market, as the price of photovoltaic modules has continued to decline after more than a year, the current proportion of the total investment in household power stations has been relatively low, further improving the return on investment of balcony photovoltaic projects.

With unlimited potential, balcony photovoltaics may become a new growth pole of the photovoltaic industry

Balcony photovoltaics have huge market potential. Based on an estimate of 41.3 million households in Germany, the current penetration rate of balcony photovoltaics is only about 2%. If we conservatively estimate the penetration rate of 20%, the number of balcony photovoltaic installations in Germany will reach 8.26 million in the future.

In China, with the clarification of distributed photovoltaic policies and power plant profitability in various regions, the household photovoltaic market will achieve steady development under the new normal, and customer demand in various provinces is expected to show varying degrees of recovery. Lao Yang also predicted in the video that the number of balcony photovoltaic installations will exceed 10,000 units in 2025, and will exceed 100,000 units in 2026, growing at a tenfold rate every year.

In terms of technology development, future iteration directions include flexible photovoltaic adaptation, flow battery compatibility and AI load forecasting, which will further reduce users’ dependence on the power grid and policy subsidies.

As more local policies and regulations are clarified and market education deepens, China’s balcony photovoltaic market will usher in explosive growth.

Those companies that have deployed balcony photovoltaic technology early have already taken the lead in this competition.

Balcony photovoltaics is not only an energy solution, but also an important way for citizens to participate in the energy transition. It allows every household to transform from energy consumer to “prosumer” and participate in the global process of carbon neutrality from their own balcony.
This seemingly small market is becoming a huge force driving global energy transformation.