China to End Export Rebates on PV Products on 1st April 2026

On 9 January 2026, China’s Ministry of Finance and the State Taxation Administration announced that the export tax rebates on solar panels will be withdrawn on the 1st of April 2026. Similarly, for batteries, the rebate will be reduced from 9 to 6 percent as of the same date, before getting scrapped in 2027.

The Ministry justified the move in order to rationalize the #PV industry and better allocate its financial resources. Many countries have accused China of unfair trade subsidies and unbridled overcapacity, causing an overflooding of Chinese PV on the global market. The China Photovoltaic Industry Association issued a statement welcoming the measure, which it believes will contribute to ‘ease friction.’

It is expected that some overseas buyers might pile up orders before the price hike, leading to a short-term boost to sales. After that, it is forecasted that the industry production capacity might drop from 5 to 10 percent. Other than consolidating the industry, the measure might motivate some Chinese PV makers to adopt more automation or to delocalize overseas.

Although invented in the USA, both the USA and the EU apparently did not wish to support and develop this industry on their home turf. Lured by lower production costs in China, they moved manufacturing to China, and it did not take long for China to master the process.

Today, China dominates the PV value chain, from polysilicon, ingots, wafers, cells, and panels. Indeed, China produces 95% of the polysilicon and outputs 85% of the PV panels in the world. Therefore, even if the PV assembly plant is overseas, it might still have to import the polysilicon raw materials from China.

In December 2024, the Chinese government already dropped the rebate from 13 to 9 percent on PV and battery products. Thus, this new move is consistent with the earlier signaling in light of the concerns from both the domestic industry and overseas markets to address the ‘unsustainable rat race.’