China will eliminate value-added tax (VAT) export rebates on solar photovoltaic (PV) products from April 1, 2026, according to a joint notice issued on January 9 by the Ministry of Finance of the People’s Republic of China and the State Taxation Administration. The move marks a significant shift in the country’s export incentive framework for renewable energy equipment.
Under the revised policy, VAT export rebates for solar products will be completely withdrawn from the effective date. The decision applies to a wide range of PV components, including monocrystalline silicon wafers, unassembled solar cells, and finished photovoltaic modules.
Battery Products to See Phased Reduction
The policy also introduces a phased rollback of export rebates for battery products. The export rebate rate for batteries will be reduced from 9% to 6% between April 1 and December 31, 2026, before being fully eliminated from January 1, 2027.
The battery category covers not only lithium-ion batteries and battery packs, but also other energy storage technologies such as all-vanadium redox flow batteries. In addition, the rebate withdrawal extends to key upstream materials used in lithium-based batteries, including lithium hexafluorophosphate, lithium manganate, lithium cobalt oxide, and lithium nickel cobalt manganese oxides.
Product Scope and Industry Context
The published product lists indicate that the solar category includes monocrystalline silicon wafers with diameters above 15.24 cm, both above and below 220 micrometers in thickness, doped for electronic industry use. Industry sources note that most mainstream PV wafers currently produced fall within this definition.
This is the second major adjustment to China’s export rebate regime for solar and battery products in just over a year. In a previous revision announced in November 2024 and implemented from December 1, 2024, export rebate rates for selected solar equipment, batteries, refined oil products, and certain non-metallic mineral products were reduced from 13% to 9%.
Market Impact and Outlook
Market analysts expect the policy to increase export costs for Chinese PV and battery manufacturers. With a transition window of nearly three months before implementation, some anticipate a surge in exports during the first quarter of 2026 as companies accelerate shipments ahead of the deadline.
Over the longer term, analysts believe the removal of export tax incentives will support China’s broader industrial strategy by encouraging industry consolidation, technological upgrading, and a shift toward higher-value, more sustainable manufacturing, rather than volume-driven export growth.





