Value-added tax export tax rebate for photovoltaic products canceled starting today

Securities Daily reporter Yin Gaofeng

Effective April 1, 2026, China has officially canceled the VAT export tax rebate for photovoltaic products.

“At a time when the photovoltaic industry is undergoing deep adjustment, this move may further accelerate industry differentiation and deepen the industry’s pushback against ‘involution.’” Qu Fang, an investment advisor at Wuliang Securities, said in an interview with Securities Daily.

As early as January 2026, the Ministry of Finance and the State Taxation Administration jointly issued an announcement clarifying that the VAT export tax rebate for photovoltaic products would be canceled effective April 1, 2026. After the policy signal was released, top manufacturers such as Longi Green Energy Technology Co., Ltd. (hereinafter referred to as “Longi Green Energy”) and JinkoSolar Technology Co., Ltd. had already raised module prices.

A recent price analysis report on the photovoltaic industry chain by consulting firm InfoLink Consulting shows that, influenced by expectations of the export tax rebate policy, module prices in multiple regions increased. At the same time, overseas markets became a key export shipping direction in March.

Zheng Tianhong, a senior analyst at Shanghai Metals Market, said in an interview with Securities Daily that this round of module price increases is the combined result of rigid cost increases and policy guidance. The surge in silver prices is the core underlying reason, and the adjustment to the export tax rebate policy is an important trigger.

“Prices of raw materials such as precious metals have continued to rise, and together with the impact of the export tax rebate policy adjustment, it has squeezed industry profit margins. These two factors jointly push up photovoltaic product prices.” a person in charge at Longi Green Energy said in an interview with Securities Daily.

“In the policy window period, most overseas distributors and end-use enterprises have already completed inventory stocking in advance.” Zheng Tianhong analyzed that after the cancellation of VAT export tax rebates for photovoltaic products, because procurement costs increase, overseas companies will prioritize consuming previously accumulated inventory, and the amount of actual new orders is expected to decline noticeably. Domestic module companies may also have to shift to the domestic market to compete for orders, and module transaction prices are expected to fall.

However, Zheng Tianhong also said that falling module prices are expected to stimulate the acceleration of domestic end-user projects entering the market, and there is some room for recovery on the demand side.

“After policy implementation in April, profit margins have been compressed, and the pressure on small and medium-sized enterprises will increase further.” Wang Tieshan, Director of the Industry Development and Investment Research Center at Xi’an University of Engineering, said in an interview with Securities Daily.

According to calculations by Shanghai Metals Market, taking 210R modules as an example, after canceling the VAT export tax rebate, the profit per module exported will decrease by 46 yuan to 51 yuan.

“The photovoltaic industry is currently going through deep adjustment. Canceling the export tax rebate is effectively accelerating the industry’s market clearing process.” Wang Tieshan believes that top companies laid out their overseas presence earlier, and their globalized production capacity makes their impact relatively controllable, while small and medium-sized manufacturers face far tougher survival tests.

Wang Tieshan further analyzed that in the past, a significant portion of the benefits of export tax rebates was effectively passed on to overseas buyers through price concessions. After the policy is canceled, companies will renegotiate prices with overseas clients, and the pace of overseas factory construction will also accelerate. Overall, this adjustment is an important signal of the photovoltaic industry shifting from policy-driven operation to market-based competition.

In Zheng Tianhong’s view, after the cancellation of the export tax rebate, technological innovation and brand building in the photovoltaic industry will become the main development directions. Top companies that continue to innovate are expected to further expand market share by leveraging their scale and technology advantages. “High-quality, high-standard, high-premium photovoltaic products are becoming the main path to ‘break the cycle of involution’ at present, and the impact of low-price competition will keep diminishing.”

“Under the dual effects of faster capacity market clearing and intensified technological upgrading, the industry’s pattern of differentiation will become increasingly clear.” Qu Fang said that with their globalized deployments and technological advantages, leading companies are expected to become even stronger. Small and medium-sized enterprises that lack core competitiveness will face greater survival pressure. After this round of reshuffling, the photovoltaic industry’s concentration may further increase.