Bosses of photovoltaic and battery foreign trade have been calculating an account recently: starting from April 1, export tax rebates for photovoltaic products will be completely cancelled, and the tax rebate rate for battery products will also be gradually reduced.
This is not a simple policy change, but a key step for the country to promote the high-quality development of foreign trade, allowing the industry to shift from “relying on subsidies to compete for prices” to “relying on technology, brand, and service to win the market.”
1. What has changed in the policy?
The official document makes it clear
Announcement No. 2 of 2026 by the Ministry of Finance and the State Administration of Taxation clearly stated that starting from April 1, 2026, the export tax rebate policy for photovoltaic and other products will be officially adjusted. The core content is clear at a glance:
- Photovoltaic products: The value-added tax export rebate will be cancelled, covering 249 products such as silicon wafers, cells, modules, and inverters, and the tax rebate rate will be directly reduced from 9% to 0%.
- Battery products: Step by step reduction, the tax rebate rate will be reduced from 9% to 6% from April 1 to December 31, 2026, and the tax rebate will be completely canceled from January 1, 2027.
- Execution standards: Based on the export date of the customs declaration form, customs declarations before April 1 will still be implemented according to the original policy, and thereafter the new policy will be implemented.
2. Behind the policy adjustment: not “one size fits all”, but precise guidance
Many people think this is “cutting off subsidies”, but in fact it is the state that is guiding the transformation and upgrading of the industry.
In the past decade or so, photovoltaic and battery exports have relied on tax rebates. Many companies have relied on low prices to seize the market. Homogeneous competition has become serious and profits have been suppressed to a very low level.
The current cancellation of tax rebates is to force companies to improve technology, optimize costs, build brands, and truly rely on strength to gain a foothold in the international market.
This is also an inevitable requirement for the high-quality development of the country’s foreign trade: making export products more competitive rather than relying on policy dividends to prop up the situation.
3. Real cases: How do companies respond?
After the policy was implemented, many companies have begun to adjust. Let’s look at a few real cases:
1. A photovoltaic module company in Zhejiang: Make arrangements in advance to stabilize orders
A photovoltaic module company in Zhejiang completed customs declaration three months in advance and locked in all orders before April 1, avoiding cost losses caused by the cancellation of tax rebates.
The person in charge of the company said: “In the past, we could make some money through tax rebates, but now we can only rely on technology and cost control. We have upgraded our products and made high-power components, and customers are more willing to pay, and profits have become stable.”
2. A battery company in Jiangsu: Adjusting product structure and reducing costs
A battery company in Jiangsu has shifted its products from low-end to energy storage batteries, while optimizing the production process and reducing the cost per watt.
Enterprise estimates: After the tax rebate was cancelled, the cost per watt increased by 0.05 yuan, but through technological upgrades, the cost was reduced by 0.04 yuan, which basically offset the impact of the policy.
The person in charge said: “Policy forces us to upgrade. If we don’t transform, we will be eliminated.”
3. A photovoltaic company in Guangdong: Expand the domestic market and reduce dependence on exports
A photovoltaic company in Guangdong has shifted export orders to domestic photovoltaic power plant projects. The domestic market demand is stable and profits are more guaranteed.
The person in charge of the company said: “In the past, exports accounted for 80%, but now it has dropped to 50%. The ability to resist risks is much stronger.”
IV. The impact of policy adjustments on the industry: challenges and opportunities coexist
1. For enterprises: short-term pressure, long-term benefits
Short-term: export costs rise, profits are compressed, and small and medium-sized enterprises that rely on tax rebates are under greater pressure.
Long-term: eliminate backward production capacity, promote technological upgrading, increase industry concentration, and lead companies with greater advantages.
2. To the market: Prices return to rationality and competition becomes fairer
In the past, price wars relied on tax rebates, but now prices are more realistic and customers value product quality and services more.
As domestic market demand grows, companies can focus more on the country and reduce their reliance on exports.
3. To the country: Promote high-quality development of foreign trade
Reduce policy dependence and enhance the international competitiveness of products.
Guide enterprises to develop in a high-end, green, and intelligent direction, in line with the national “double carbon” strategy.
5. How should companies respond?
Here are some practical suggestions for you
- Plan customs declaration in advance: Complete customs declaration before April 1 to lock in the original tax refund policy.
- Optimize product structure: Make high value-added products and increase profit margins.
- Reduce production costs: Reduce the cost per watt through technology upgrades and management optimization.
- Expand the domestic market: reduce export dependence and spread risks.
- Strengthen brand building: win customers by brand and service, not by price.
6. Written at the end
The adjustment of export tax rebates for photovoltaic and other products is an important adjustment to the country’s foreign trade policy.
In the short term, companies will experience pain; in the long term, the industry will be healthier and more competitive.
For enterprises, only by adapting to policies and taking the initiative to transform can they gain a firm foothold in the new market environment.
