Important Policy Update | Changes in China's VAT Rebate to Reshape Global PV & Energy Storage Costs INCLUDING LIQUID SILICONE
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Important Policy Update | Changes in China's VAT Rebate to Reshape Global PV & Energy Storage Costs INCLUDING LIQUID SILICONE

Views: 0     Author: Mason Liu     Publish Time: 2026-01-20      Origin: Site

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The Ministry of Finance and the State Taxation Administration of China have officially announced major changes to the VAT export rebate policy affecting photovoltaic and battery-related products. 

     

Key Policy Highlights

 ◾ CN PV products: Export VAT rebate will be fully canceled from April 1, 2026 (Liquid Silicone IS INCLUDED IN THE LIST!!!) 

 ◾ Battery products: Rebate rate will be reduced from 9% to 6% in 2026, and completely eliminated from 2027 The policy scope extends beyond finished products and also impacts key components and materials throughout the supply chain 


Expected Industry Impact

 ◾ Global procurement costs for solar and energy storage systems are expected to increase by approximately 6%–13% 

 ◾ Export-driven production models will face structural cost pressure Short-term order front-loading is likely ahead of Q2 2026 


What Buyers & Project Owners Should Consider

 ◾ Engage early with Chinese suppliers to understand cost structure changes

 ◾ Secure pricing and delivery schedules where possible ◾ Review inventory and sourcing strategies ahead of anticipated demand shifts in early 2026 


This marks a structural change rather than a short-term fluctuation, and will influence pricing, sourcing, and localization decisions across the global renewable energy supply chain.



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