Key Takeaways
China's Ministry of Finance is removing a key financial incentive for its renewable energy exporters. The government will cancel value-added tax (VAT) export rebates for photovoltaic products and phase them out for batteries, a move set to increase costs and pressure the profitability of major manufacturers.
- Photovoltaic Rebates Canceled: Effective April 1, 2026, all VAT export rebates for solar products will be eliminated.
- Battery Rebates Phased Out: Battery export rebates will be cut from 9% to 6% on April 1, 2026, before being fully removed on January 1, 2027.
- Increased Export Costs: The policy change directly raises the cost of exporting for affected companies, likely eroding their international price advantage and squeezing profit margins.
