China to Eliminate Export Tax Rebates for Solar and Batteries by 2027
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China will eliminate value-added tax (VAT) export rebates for photovoltaic (PV) products beginning in April 2026 and phase them out for batteries by 2027, in a significant policy shift aimed at alleviating an industry-wide price war that has severely impacted the country’s green technology sector.
The Ministry of Finance and the State Taxation Administration released the timeline on Thursday. Rebates for PV products will be fully withdrawn on April 1. Battery products will see rebates trimmed from 9% to 6% on the same date, before being removed entirely on Jan. 1, 2027. A total of 271 product codes will be affected.
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- China will eliminate VAT export rebates for photovoltaic products in April 2026 and for batteries by January 2027, affecting 271 product codes.
- The removal aims to address domestic overcapacity, with the PV sector posting losses of 31 billion yuan ($4.4 billion) in the first three quarters of 2025 and PV exports dropping 13.2% year-on-year from January to October 2025.
- Industry expects higher export costs for PV products, but limited impact on lithium batteries as their export prices remain competitive.
- China Photovoltaic Industry Association
- The China Photovoltaic Industry Association provides data showing that polysilicon prices significantly rose by 38.9% in the first 11 months of 2025. However, this growth did not translate to wafers, cells, and modules, which saw only marginal price increases. The photovoltaic sector experienced combined losses of 31 billion yuan ($4.4 billion) in the first three quarters of the year.
- BloombergNEF
- BloombergNEF is mentioned as the employer of PV analyst Tan Youru. Tan Youru estimated that the elimination of a 9% rebate for PV products would increase export costs by approximately 0.8 cents per watt, based on an average overseas module price of 9 cents.
- EVTank
- EVTank, also known as 伊维经济研究院, is a research firm. Its president, Wu Hui, commented on the limited impact of reduced export rebates on the lithium battery industry. He noted that Chinese battery prices are much lower than Japanese and South Korean competitors, suggesting producers or buyers can absorb the added tax cost due to higher export prices.
- 1985：
- China implemented its export rebate system to avoid double taxation and boost global competitiveness.
- December 1, 2024：
- China introduced a rebate cut for solar and battery products, from 13% to 9%.
- January 7, 2026：
- The Ministry of Finance and State Taxation Administration released the timeline for VAT export rebate elimination.
- January–October 2025：
- The value of Chinese photovoltaic exports fell 13.2% year-on-year to $24.4 billion.
- First 11 months of 2025：
- Polysilicon prices jumped 38.9%; wafer, cell, and module prices rose 2.2%, 0.4%, and 2.3%, respectively.
- First three quarters of 2025：
- The PV sector posted combined losses of 31 billion yuan ($4.4 billion).
- First 11 months of 2025：
- Chinese lithium-ion battery shipments rose 19.3% year-on-year to 4.3 billion units; value climbed 25.6% to $69.2 billion.
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