April 3, 2026 – Effective April 1, 2026, China has completely eliminated export tax rebates for 249 product categories across the entire photovoltaic (PV) industrial chain and reduced the rebate rate for lithium battery and energy storage products to 6%, according to a joint announcement by the Ministry of Finance and the State Taxation Administration. The policy change directly raises export costs, quickens the weeding-out of weaker players, and drives domestic companies to accelerate overseas capacity expansion, further sharpening the competitive edge of industry leaders.

The new rule removes rebates – previously ranging from 9% to 13% – for all PV products including polysilicon, wafers, cells, modules, and inverters. For lithium-ion batteries and energy storage systems, the rebate rate has been slashed from 13% to 6%. Analysts estimate that the move adds roughly $0.13 per dollar of PV exports and increases costs for lithium battery shipments by about 7%.

“The zero-rebate policy removes a crucial profit cushion, putting pricing power to the test,” said Liu Yiyang, deputy secretary-general of the China Photovoltaic Industry Association. Industry insiders note that many small and mid-sized enterprises had relied on rebates to sustain thin margins. With the rebates gone, inefficient capacity and firms lacking cost-control capabilities will be forced out. In contrast, leading players such as LONGi Green Energy, JinkoSolar, and CATL – leveraging economies of scale, technological advantages, and existing overseas bases – are better positioned to absorb cost pressure and are likely to gain market share amid industry consolidation.

In response, top manufacturers have accelerated their overseas capacity build-up. LONGi recently announced additional investments in its Vietnam and Malaysia facilities; JinkoSolar plans to build a 10GW module plant in Saudi Arabia; and CATL is speeding up the construction of its third European battery plant. According to incomplete statistics, Chinese PV and lithium battery companies have disclosed more than 20 overseas factory projects since the beginning of 2026, mainly in Southeast Asia, the Middle East, and North America.

“Although exports will face short-term pressure, leading companies can hedge policy risks through global footprints,” said Zhu Yue, chief analyst of new energy at China Securities. “In the long run, industry concentration will increase, and Chinese champions will strengthen their global pricing power.” Industry experts predict a new wave of overseas plant construction by China’s new energy sector in the next two years.