The Ministry of Finance and the State Taxation Administration have jointly released the "Announcement on Adjusting Export Tax Refund Policies for Photovoltaic and Other Products", unveiling a far-reaching policy shift:

• From 1 April 2026, the value-added tax (VAT) export rebate for photovoltaic products will be completely abolished.

• From 1 April 2026 to 31 December 2026, the VAT export rebate rate for battery products will be cut from 9% to 6%.

• From 1 January 2027, the VAT export rebate for battery products will also be fully scrapped.

The announcement clarifies that for the above products, the existing export consumption-tax refund (exemption) policy remains unchanged and will continue to apply.

   Policy shift: from sector subsidy to transformation driver   

China’s solar-PV industry faces a milestone policy U-turn—the first total withdrawal of VAT export rebates since the products were brought into the refund system. The move is more than a fiscal tweak; it signals a fundamental change in Beijing’s support philosophy and will reshape the sector’s future trajectory.

   Evolution: from generous support to orderly exit   

       Export-tax rebates for PV began in October 2013 with refunds as high as 50 % of VAT, a key catalyst that helped Chinese modules seize global market share. As the industry matured and competitiveness strengthened, the rebate was trimmed. On 15 November 2024 the Ministry of Finance and the State Taxation Administration cut the refund rate for selected refined-oil, PV and battery products from 13 % to 9 %—a tentative step toward full removal.

       Battery products are being given a gentler path: the rebate will first drop to 6 % and then to zero the following year, reflecting a more cautious approach to that segment of the supply chain.

Customs codes for the listed photovoltaic products are as follows:
2404120000、25041091、28269020、28353110、28353190、28353911、28416910、28419000010、28429030、28429060、28539030、28539050、29032200、2904990090、29051100、29053100、2905399002、29191000、29199000302、29199000303、29199000901、29199000902、29201900102、29201900103、2920190090、29202100、29202200、29202300、29202400、292029100001、292029010002、2920299090、2926909090、2922299090、29299020、29299030、29299090102、29299090103、2929909014、2929909015、29309030001、29309030002、2930909042、29309090451、29309090452、29309090461、29309090462、29314100、29314200、29314300、29314400001、29314400002、29314500、29314600、29314700、29314800、2931499010、29314990201、29314990202、29314990302、29314990303、29314990901、29314990902、29315100001、29315100002、29315200、29315300、29315400001、29315400002、2931590001、29315900401、29315900402、29315900501、29315900502、29315900601、29315900602、29315900701、29315900702、29315900701、29315900702、29315900901、29315900902、29339200、29393000、3819010、38180014、38180015、38248900、38249100、38249200、3824999950、39041090、39042100、39042200、39072100、39072990、39100000、39112000、68022120、680291100、68029190、68029210、68029290、68029311、68029319、68029390、68029910、68029990、68030010、68030090、68041000、68042110、68042190、68042210、68042290、68042310、68042390、68043010、68043090、68051000、68052000、68053000、68061010、68061090、6808000、68091100、68091900、68099000、68101100、68101910、68101990、68109110、68109190、68109910、68109990、68114010、68114020、68114030、68114090、68118100、68118200、68118910、68118990、68128000、68129100、68129910、68129920、68129990、68132010、68132090、68138100、68138900、68141000、68149000、68151200、68151310、68151390、69039000、69041000、69049000、69051000、69059000、69060000、69072110、69072110、69072190、69072210、69072290、69072310、69072390、69073010、69073090、69074010、69074090、69091100、69091200、69091900、69099000、69101000、69109000、69111011、69111019、69111021、69111029、69119000、69120010、69120090、69131000、69139000、69149000、70010010、70023200、70023900、700319001、700529002、70060000、70071110、70071190、70071900、70072110、70072190、70072900、70080010、70080090、70091000、70099200、70101000、70102000、70109010、70109020、70109030、70109090、70112010、70112090、70119010、701131000、70132800、70133300、70133700、70134100、70134200、70134900、70139100、70139900、70140010、70140090、70151010、7015090、70159020、70161000、70169010、70169090、70171000、70172000、70179000、70181000、70182000、70189000、70198010、70199099、70200011、70200013、70200091、84141200、85414300、8543400090

   The logic behind the adjustment: an orderly exit and the payoff from "anti-involution"   

       Academics and industry experts broadly agree the policy shift is justified. Lin Boqiang, director of Xiamen University’s China Institute for Energy Policy, notes that rebates were designed to nurture an emerging sector; with technological progress and economies of scale, battery costs have fallen sharply, so withdrawal is natural. Lü Jinbiao, an adviser to the China Photovoltaic Industry Association, calls the move a key step in the industry’s "anti-involution" campaign. Since 2024 producers have abandoned cut-throat price wars, matching output to sales and adjusting capacity to improve supply-demand balance, pushing prices back to rational levels. Wang Bohua, honorary chairman of the association, told the 2025 annual conference that self-discipline has already curbed "externalised involution" and stabilised export prices. In January-October 2025 China’s PV export value fell 13.2 % year-on-year, far smaller than the 34.5 % drop recorded a year earlier—evidence that both policy withdrawal and industry self-regulation are working.

Customs codes for battery products are as follows:

8506101110、8506101210、8506101910、8506101990、8506109010、8506109090、8506400010、856400090、85065000、8506600010、8506600090、8506800011、8506800019、8506800091、8506800099、85069010、85069090、85075000、8576000、8578030、85078090、85079090

   Industry impact: battery segment under pressure, global footprint accelerates   

       The policy change will hit different parts of the PV chain in different ways. Industry insiders note that, compared with highly integrated module makers, stand-alone cell producers will face heavier pressure to overhaul their business models during the transition.

       In the short term firms are expected to absorb the lower rebate through internal cost-cutting; in the long run, once the rebate is fully eliminated in 2027, lagging cell capacity that lacks technological edge or cost control will be squeezed out faster. Price and margin volatility in the cell segment is therefore likely to be more severe than in modules.

       Seen from a wider lens, the adjustment is a clear signal that China’s new-energy sector is shifting from “product exports” to “capacity and technology exports.” To head off rising trade barriers and higher export costs at home, leading players will speed up building localised capacity in Europe, the Middle East and North America, driving a deep restructuring of the global PV supply chain.

       Overall, the complete overhaul of China’s PV export-tax-rebate regime is an inevitable stage of industrial development. It will not only optimise China’s own industrial structure and core competitiveness, but also propel the country’s new-energy industry toward higher-quality, more sustainable growth worldwide.