Industry news: China to End Export Tax Rebates on products from April 2026

Beijing, 9 January 2026 – China’s Ministry of Finance and the State Taxation Administration have announced significant changes to export tax rebate policies affecting photovoltaic (PV) products, batteries and related technologies. The measures, which will take effect from 1 April 2026, are expected to influence global solar supply chains and pricing dynamics.

End of Export Tax Rebates for Photovoltaic Products

Under the new policy, export tax rebates for photovoltaic products will be fully cancelled from 1 April 2026. This marks a major shift for the global solar industry, as China remains the world’s largest manufacturer and exporter of solar modules, cells and components.

Export tax rebates have historically helped offset VAT costs for manufacturers, supporting competitive pricing in international markets. Their removal is therefore likely to increase export costs for Chinese PV products.

Gradual Reduction for Battery Export Rebates

The announcement also outlines a phased adjustment for battery products:

• From 1 April 2026 to 31 December 2026, the export VAT rebate rate for batteries will be reduced from 9% to 6%
• From 1 January 2027, export VAT rebates for battery products will be fully cancelled

These changes signal a broader recalibration of China’s export support policies across clean energy technologies.

No change to Export Consumption Tax policy

For products that are subject to consumption tax, the authorities confirmed that existing export consumption tax refund and exemption policies will remain unchanged. This applies only to products where consumption tax is relevant.

The applicable tax rebate rate will be determined by the export date shown on the customs declaration, not the production or contract date. This detail is important for companies managing shipments close to the policy transition period.

What this means for the UK Solar Market

The removal of export tax rebates may place upward pressure on global PV pricing, particularly for projects heavily dependent on imported modules and components from China. However, it may also accelerate trends already underway in Europe and the UK, including:

• Greater focus on quality, durability and lifecycle value, rather than lowest upfront cost
• Increased interest in European-manufactured and premium solar technologies
• Stronger emphasis on long-term performance, warranties and sustainability credentials

At Solarwatt, we continue to monitor global policy developments closely to ensure our customers benefit from stable supply chains, high-quality products and long-term investment security.