A "new normal"
For over a decade, China's photovoltaic (PV) industry has been bolstered by favorable fiscal policies, most notably the value-added tax (VAT) export rebate. However, as of April 1, 2026, the Chinese Ministry of Finance and the State Taxation Administration have officially eliminated the 9% export tax rebate for PV products, including solar cells, modules, and inverters.
Impact on Global Pricing and Supply
The most direct consequence of this policy is a structural increase in export costs. Manufacturers, who previously relied on the 9% rebate to maintain razor-sharp margins, are now integrating these tax costs directly into their pricing. Since the announcement earlier this year, leading module manufacturers have already revised guidance prices upward by approximately 8% to 10%.
This shift has triggered a wave of "panic buying" and order renegotiations in key markets like Europe and the Middle East. For EPC contractors and distributors, the era of ultra-low-cost Chinese modules is effectively over. Project developers must now account for higher capital expenditures (CAPEX), forcing a re-evaluation of project internal rates of return (IRR) across the global renewable sector.
Strategic Shift in Battery and Storage Products
While PV modules saw an immediate cut to zero, battery products-including lithium-ion and energy storage batteries-are undergoing a phased transition. As of April 2026, the rebate for batteries has been reduced from 9% to 6%, with a total phase-out scheduled for January 1, 2027. This grace period offers a temporary window for the energy storage sector to adjust its logistics and pricing strategies before the full tax burden hits next year.
For professional procurement agents, this emphasizes the urgency of securing long-term supply agreements now. As the cost of storage systems is projected to rise steadily through 2026, many integrators are shifting their focus toward high-efficiency technologies like TOPCon and high-cycle LiFePO4 systems. The goal is to offset the rising tax costs through superior product performance and longer service life, ensuring that the total cost of ownership (TCO) remains competitive despite the initial price hike.