From 1st April 2026, China is going to remove export VAT rebates on solar panels and begin reducing rebates on battery products. These China solar VAT changes are a confirmed policy decision, and we wanted to share it with you as it may be relevant if you’re thinking about solar or battery storage over the next year or two.
China is one of the world’s largest manufacturers of solar technology. When policies like this change, they tend to influence pricing and availability gradually over time. There’s no need for concern, but it’s helpful to be aware of what’s ahead so you can make informed decisions at your own pace.
Here’s what’s changing, and a bit of context that may be helpful.
Upcoming China solar VAT changes
China’s Ministry of Finance and State Taxation Administration has confirmed updates to export tax rebates for photovoltaic (solar PV) products and batteries.
For solar panels, the current 9% VAT export rebate will be removed completely from 1st April 2026.
For battery products, the VAT export rebate will reduce from 9% to 6% from 1st April 2026 and then be removed completely from 1st January 2027.
These rebates have helped keep export prices competitive for many years. Removing them increases the underlying cost of exporting panels and batteries, which is why this change is relevant outside China too.
Why this is relevant for the UK
A large proportion of the solar panels and batteries used in the UK are manufactured in China. When export costs increase there, those changes tend to feed through gradually into wholesale pricing elsewhere, including here.
For customers in the UK, there are a few things worth bearing in mind.
This points towards gradual price changes rather than sudden shifts. This doesn’t change the long-term value of investing in renewables, but it does reinforce the importance of planning well and choosing the right system from the outset. It does suggest that the unusually low panel prices seen recently may not continue indefinitely beyond mid-2026.
This change sits alongside other steady adjustments happening across the global supply chain. Over the past year we’ve seen refinements in raw material production and efforts to create a more balanced market. Together, these moves are helping the industry settle into a more stable, predictable place.
Planning matters more than chasing the lowest short-term price. For projects likely to be installed in late 2026 or beyond, early conversations around system design, timing and procurement can help create clarity and confidence. In our experience, thoughtful planning nearly always leads to better outcomes.
Batteries follow a slightly different timeline. Because battery rebates are being reduced in stages, storage pricing may change at a different pace to panels. This is one of the reasons we always encourage looking at the whole system together, rather than making decisions on individual components in isolation.
What this means for homes and businesses
Despite the China solar VAT changes, the fundamentals haven’t changed. Solar remains one of the most reliable ways to reduce energy costs, improve energy security and lower carbon impact over the long term.
What continues to make the biggest difference is having clear, honest conversations early on.
Well designed systems, installed by experienced teams using proven equipment, tend to stand the test of time far better than projects driven purely by short-term pricing. For most customers, that means feeling comfortable about when to move ahead, what to plan for, and how to design a system that will still work well years into the future.
How we support our customers
At aes renewables, we keep an eye on industry developments like this so our customers don’t have to. With nearly 50 years of experience, we’ve seen how markets evolve and we know that planned, well informed decisions lead to the best results.
If you’d like to talk to the team about these China solar VAT changes, planning your solar installation and thinking ahead, we’re always happy to have that conversation.
Feeling good energy.
