China's Ministry of Finance and State Taxation Administration announced a pivotal policy shift on January 9, phasing out critical export tax rebates for solar products and battery products. Effective April 1, 2026, the value-added tax (VAT) export rebate for solar cells, modules, and key wafers will be abolished entirely. For lithium-ion batteries and related energy storage technologies, the rebate drops from 9% to 6% in 2026 before full elimination on January 1, 2027. This move significantly impacts Chinese PV and battery manufacturers, reshaping the global China solar export landscape.
Understanding the Policy Change
The policy precisely defines affected products. The solar category covers mainstream monocrystalline silicon wafers, unassembled solar cells, and finished modules. The battery category is broad, including lithium-based batteries, solar battery packs, and even alternative technologies like all-vanadium redox flow batteries. It also extends to key raw materials. This follows a 2024 reduction of rebates from 13% to 9%, marking a decisive end to decades of China VAT export rebates incentives for these sectors.
Market Impact & Short-Term Response
Analysts state this will materially raise export costs for lithium battery manufacturers in China and Chinese solar module manufacturers. The immediate effect will likely be a surge in Q1 2026 shipments as companies rush to clear orders under existing China solar export tax rebates. For global buyers, this signals the end of an era of pricing buoyed by these rebates. Planning supply chains around solar and battery imports from China now requires accounting for this new cost structure.
Long-Term Outlook & Value for Clients
The long-term goal is clear: to drive industry consolidation and technological upgrading. By removing generalized solar VAT incentives, China encourages moving beyond volume-driven growth toward high-value, sustainable manufacturing. For clients, this means partnering with resilient, forward-thinking manufacturers. As a leading China solar battery products manufacturer, YouthPOWER is positioned for this shift. We invest in advanced energy storage technologies and efficient production, ensuring stable supply and superior value despite changing policies, helping you navigate this new, more mature market phase.
Post time: Jan-13-2026