Export tax rebate for solar rack components

Will China reduce export tax rebates for solar panels and batteries?

China has announced it will lower the export tax rebate rate for solar photovoltaic products and batteries from 13% to 9% starting December 1, 2024. It also eliminates export tax rebates for aluminum and copper. The announcement was jointly made by China’s Ministry of Finance and the State Taxation Administration.

How will the elimination of export tax rebates affect solar PV & batteries?

The elimination of export tax rebates on aluminum and copper, which are also used in the renewable energy industry, has already increased the prices of these metals. The reduction in export incentives could also impact solar PV and batteries.

What are China's Export tax rebates?

The export tax rebates are seen as China’s efforts to support its industries since this financial support from the administration enables companies to sell their products overseas for lower prices. A list of the 209 products is available here.

How does a solar tax rebate work?

How it will work is that individuals and households will be able to receive a tax rebate to the value of 25% of the cost of any new or unused solar panels that they have bought. This incentive does not include inverter or battery purchases.

Will China phase out export tax rebates?

Some industry analysts, who spoke to pv magazine on condition of anonymity, said the tax rebate reduction is part of a longer-term strategy. With Chinese PV products dominating global markets, they said that the government might eventually phase out export tax rebates entirely.

How will a reduced export rebate affect China's PV industry?

Companies may respond by increasing export prices to offset potential losses. “While the reduced export rebate rate will have minimal impact on production costs for Chinese PV manufacturers, it is likely to provide support for overseas prices, aiding in a potential recovery,” said research firm Shanghai Metals Market (SMM).