China’s Ministry of Finance and the State Taxation Administration have announced a major adjustment to the export VAT rebate policy for photovoltaic products.

1) From April 1, 2026, export VAT rebates for PV modules and related products will be fully cancelled.

2) For solar cells, the rebate rate will be reduced from 9% to 6% between April 1 and December 31, 2026, and will be eliminated from January 1, 2027.

China’s removal of export tax rebates marks a significant shift in global solar pricing and trade dynamics.

Why is China Slashing Solar and Battery Subsidies?

The China Photovoltaic Industry Association (CPIA) welcomed the move, saying it could support a “rational recovery” of overseas prices, reduce trade frictions, and ease fiscal pressure on the government.

In fact, China has been gradually reducing VAT rebates for solar and battery products in recent years. The latest policy is expected to reshape China’s PV industrial landscape, accelerating industry consolidation and pushing companies to prioritise innovation, efficiency and product quality. Smaller players may face increasing pressure, while firms with strong R&D capabilities are likely to lead the next phase of growth.

How Does Sailsolar Respond to This Policy?

“Long-term, this forces the entire industry up the value chain,” said Zhang Tao, a director at the China Photovoltaic Industry Association. “Competition will be about innovation, brand and global service, not simply the lowest price supported by government incentives.”

In response, Sailsolar has made strategic preparations for long-term development. We are optimising supply chains for lithium batteries and PV modules, strengthening strategic partnerships, and continuously refining system design and electrical efficiency across 3kW–10MWh solutions. By enhancing scenario-specific deployment strategies, Sailsolar delivers cost-effective and sustainable energy systems for global markets.

What Should Overseas PV Importers Do?

For international PV importers and project developers, the coming months represent a critical window to secure current pricing ahead of the rebate phase-out. Procurement strategies must become more proactive, with earlier coordination and commitments to manage rising cost pressures. Delayed decisions are likely to increase project expenditures.

Companies with active or upcoming projects should reassess sourcing strategies now to ensure cost stability and supply reliability under the evolving regulatory landscape.

Background note: China currently produces over 80% of the world’s solar panels. The VAT rebate system allowed exporters to reclaim part of domestic taxes, effectively lowering overseas prices.