China Ends Solar Export Tax Rebates, Sets Phase-Out Timeline For Battery Incentives

China has issued a new announcement adjusting export tax rebate policies for photovoltaic and battery products, bringing significant changes to the industry beginning in 2026. According to the official notice released on January 9 by the Ministry of Finance and the State Taxation Administration, the government will cancel the value-added tax export rebate for photovoltaic products from April 1, 2026. This means all PV items listed in the policy, including monocrystalline silicon wafers, unassembled solar cells, and complete photovoltaic modules, will no longer receive any export rebate. Industry experts note that mainstream wafer sizes and specifications currently used in production fall under this affected category.

The government has also introduced a phased reduction for battery product rebates. From April 1 to December 31, 2026, the export rebate rate for batteries will be reduced from 9% to 6%. From January 1, 2027, the rebate for these products will be completely removed. The battery category includes lithium-ion batteries, battery packs, and other energy storage technologies such as vanadium flow batteries. It also covers important upstream materials such as lithium hexafluorophosphate, lithium manganate, lithium cobalt oxide, and NCM compounds, all of which play a key role in the battery supply chain.

The notice also states that consumption tax policies will remain unchanged. For products within these categories that are subject to consumption tax, the current exemption or rebate rules will continue to apply. The export tax rebate rate applicable to each shipment will be determined by the export date listed on the Export Goods Declaration Form.

This adjustment marks the second major change in just over a year. The previous policy, announced in November 2024 and implemented from December 1, 2024, had already lowered export rebates for refined oil, solar equipment, batteries, and other materials from 13% to 9%. The new policy goes further by fully eliminating incentives for solar and battery exports over the next year.

Market analysts believe this move will raise export costs for Chinese manufacturers and may lead to increased shipments before the April 2026 deadline as companies try to avoid higher costs. Some expect a noticeable surge in exports during the first quarter of 2026. Over the longer term, experts suggest that removing these incentives may support China’s broader industrial strategy, pushing the sector toward consolidation, technological upgrades, and higher-value production instead of competing mainly on export volume.