China will cancel value-added tax (VAT) export rebates for photovoltaic (PV) and other related products from April 1, 2026, the Ministry of Finance and the State Taxation Administration have announced.

The policy also targets battery exports. The authorities said the export VAT rebate rate for battery products will be reduced from 9% to 6% from April 1 to December 31, 2026.

From January 1, 2027, export VAT rebates for battery products will be canceled.

Export-related consumption tax policies will remain unchanged for products subject to consumption tax, and the existing refund or exemption policy will continue to apply.

The applicable rebate rate will be determined based on the export date stated on the customs declaration form, the notice said.

The policy applies to solar cells not assembled into modules as well as those assembled into modules.

Battery products covered by the adjustment include a wide range, such as alkaline zinc-manganese batteries, lithium primary batteries, silver oxide batteries, zinc-air batteries, and manganese dioxide batteries, as well as battery parts.

The list also includes rechargeable batteries, including lithium-ion batteries, nickel-metal hydride batteries, vanadium redox flow batteries, and other secondary batteries and related components.

Recently, China’s State Administration for Market Regulation (SAMR) issued compliance guidance in Hefei, Anhui Province, to regulate the order of price competition in the PV industry. SAMR briefed participants on price-related violations and risk issues in the PV sector, noting that current problems, such as low-quality competition and homogeneous, repetitive capacity expansion, have led to widespread profitability issues.

SAMR emphasized that the entire industry must fully recognize the importance of rectifying involution-style competition in the PV sector. Solar companies must conduct production and business operations in accordance with laws and regulations, and are strictly prohibited from engaging in price collusion, price fraud, and other improper pricing practices.

China added 28.06 GW of solar power capacity in the third quarter (Q3) of 2025, a 52% year-over-year (YoY) decrease from 58.4 GW, according to the National Energy Administration. The China Photovoltaic Industry Association had noted that solar installations will likely decline in 2025 with the introduction of market-based pricing reforms. China had relied on a feed-in tariff regime to ramp up renewable energy capacity at a staggering pace.

China recently filed a complaint with the World Trade Organization against India’s solar PV subsidies, alleging that they provide an unfair competitive advantage to Indian companies and harm Chinese interests.