April 1, 2026: Latest Updates On The Cancellation Of Photovoltaic Tax Rebates

Key Conclusion: Announcement No. 2 of 2026 issued by the Ministry of Finance and the State Taxation Administration of China has officially taken effect. From April 1st, export tax rebates for photovoltaic products have been completely cancelled (the rebate rate drops directly from 9% to zero). A transition period is set for battery products, and the industry enters a new phase of "unsubsidized overseas exports." (State Taxation Administration Policy and Regulation Database)

I. Core Policy Content

Effective Date: From April 1, 2026, based on the date of the export customs declaration. (State Taxation Administration Policy and Regulation Database)

Photovoltaic Products: Value-added tax export tax rebates for 249 mainstream products (silicon wafers, solar cells, modules, inverters, etc.) have been cancelled, with the rebate rate dropping from 9% to 0%. (State Taxation Administration Policy and Regulation Database)

Battery Products: The rebate rate will be 6% from 9% from April to December 2026; completely cancelled from January 1, 2027. (State Taxation Administration Policy and Regulation Database)

Policy Background: Following the reduction of the tax rebate rate from 13% to 9% in December 2024, two major adjustments within a year mark the photovoltaic industry's transition from a policy-supported period to a mature stage.

II. Latest Market Dynamics

"Export Rush" Fails to Explode on a Large Scale: The anticipated "rush to export" before the tax rebate cancellation did not materialize. In January and February 2026, exports of polysilicon, wafers, and modules saw moderate year-on-year growth in both volume and value, without any abnormal surge, indicating a more rational approach from businesses.

Clear Impact on Costs and Profits: Module export costs rose directly by approximately 9%, significantly compressing the profits of small and medium-sized enterprises and low-margin companies, with some even facing losses. Leading companies, leveraging their technology, scale, and overseas presence, have stronger bargaining power and the ability to pass on costs.

Accelerated Industry Reshuffling: Policy forces the industry to shift from price wars to competition based on technology, brand, service, and global localization. Outdated production capacity and low-tech companies are being rapidly eliminated, further concentrating market share among leading companies.

Accelerated Industry Reshuffling: Policy pressures are forcing the industry to shift from price wars to competition based on technology, brand, service, and global localization. Corporate Responses:

Accelerate the iteration of high-efficiency technologies such as N-type TOPCon, HJT, and IBC to enhance product premium.

Promote overseas factory construction and localized production to mitigate the impact of tariff and tax refund cancellations.

Optimize global supply chains and pricing strategies to enhance overall competitiveness.

III. Impact and Trends:

Short-term (Q2 2026): Export growth may slow temporarily, price wars will cool down, and profits will return to rationality.

Medium- to Long-term (2026–2027): Technology and brand will become core competitiveness; industry concentration will increase; China's photovoltaic industry will upgrade from "scale advantage" to a comprehensive advantage of "technology + brand + global operation".