- VAT export rebates for photovoltaic products to be scrapped from April 2026.
- Battery export rebates to be gradually reduced and fully removed by 2027.
- Industry expects fairer pricing, reduced trade friction and stronger long term competitiveness.
China has announced a major shift in its export tax policy for photovoltaic and battery products, a move that is expected to reshape global solar supply dynamics and pricing structures.
In a joint statement issued by the Ministry of Finance and the State Taxation Administration, authorities confirmed that export tax rebates linked to value added tax for photovoltaic products will be cancelled from April 1, 2026. Export rebates for battery products will be reduced from 9 percent to 6 percent from April 1, 2026, before being fully eliminated from January 1, 2027.
The announcement builds on an earlier policy adjustment made in November 2024, when China reduced export rebate rates for solar wafers, cells and modules from 13 percent to 9 percent. Together, the measures signal a gradual but decisive move away from export support mechanisms that have played a significant role in the rapid expansion of China’s solar manufacturing sector.
According to the China Photovoltaic Industry Association, the policy aims to correct distortions in overseas markets caused by intense price competition and declining margins. The association noted that since 2024, Chinese photovoltaic exports have continued to grow in volume while average export prices have fallen, placing pressure on profitability and increasing exposure to anti-dumping and countervailing duty investigations.
In some cases, export rebates were effectively absorbed into overseas pricing negotiations, transferring fiscal resources to foreign buyers and undermining the original purpose of the rebates, which was to offset domestic VAT costs. By reducing and eventually removing these incentives, overseas prices are expected to better reflect actual production costs and technological value.
China remains the world’s largest producer and exporter of solar equipment, supplying a significant share of global demand as countries across Africa and other regions accelerate their energy transition efforts. Industry experts argue that a more market driven export pricing model will strengthen the sector’s long-term competitiveness and improve its international credibility.
The association also highlighted broader fiscal and industrial policy benefits, noting that the move will ease pressure on public finances and support more efficient allocation of state resources. The policy aligns with Beijing’s wider strategy to guide strategic industries away from price led expansion toward innovation driven and higher value growth.
Author: Bryan Groenendaal
