China Ends Solar Panel Export Tax Rebates: A New Era for Global PV Competition
China Ends Solar Panel Export Tax Rebates: A New Era for Global PV Competition
On January 9, 2026, China announced the full abolition of VAT export tax rebates for solar panels starting April 1, 2026, following a 2024 cut from 13% to 9%. This marks a key shift from policy support to market-driven competition in China’s PV sector, covering core products like solar cells and modules.
Industry estimates show the 9% rebate removal will raise export costs by ~0.8 cents per watt, squeezing short-term margins amid global supply gluts. The three-month transition period has spurred a rush to export, with some factories boosting output before the deadline, though leaders like Canadian Solar adopt a prudent, long-term stance.
The policy aims to curb price wars and drive quality upgrades. For years, tax rebates fueled cut-throat competition and trade frictions, while China’s PV giants faced 2025 losses. Experts hail the move as necessary to phase out inefficient capacity, favoring firms with tech and brand strength.
Enterprises are now shifting to high-efficiency products and global localization, using hubs like Hungary and the UAE to offset costs. While short-term consolidation is inevitable, the policy paves the way for rational global pricing and reduced tensions, signaling a mature, sustainable Chinese PV supply chain.
Source: Ministry of Finance, China Photovoltaic Industry Association, BloombergNEF
