China Drops Major Tax Perk for Solar Exports, Global Market on Alert

by | Jan 10, 2026 | News | 0 comments

China has announced that it will cancel value-added tax (VAT) export rebates for solar photovoltaic (PV) products starting April 1, 2026, marking a major shift in policy for one of the world’s largest solar exporters. 

The Finance Ministry said in a statement on Friday that this change is part of a broader adjustment to export incentives.

The ministry also confirmed that VAT export rebates for battery products will be reduced from 9% to 6% between April and December 2026, and then completely removed from January 1, 2027. However, consumption-tax rebate rules for these products will remain unchanged.

The move suggests that Beijing is scaling back financial support for solar and battery exports at a time when global trade rules and clean energy supply chains are becoming more competitive. 

Industry watchers say the decision could impact global pricing, supply strategies, and competitiveness in solar and battery markets.

Source

https://www.thehindubusinessline.com/news/world/china-to-scrap-vat-export-rebates-for-solar-products-from-april-2026/article70490376.ece

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