China adjusts its export policies with a 9% tax discount for photovoltaics

China has announced significant changes to its export tax rebate policies, effective from December 1, impacting various industries, including photovoltaic (PV) products. In a joint statement issued by the Ministry of Finance and the State Taxation Administration, it was revealed that the export tax rebate rate for photovoltaic products, along with batteries and certain non-metallic mineral products, will be reduced from 13% to 9%. This adjustment is part of broader changes, which also include the cancellation of export tax rebates for aluminum, copper, and certain oils and fats.

The policy change comes at a time when China remains the largest exporter of solar PV modules globally. With a dominant position in the renewable energy sector, the country has played a critical role in driving down the cost of solar PV panels, which now average around ?0.10 per watt peak (Wp). This has significantly boosted the affordability of solar energy, making it more accessible to developing and developed markets alike.

While the reduced tax rebate rate for PV products might marginally affect export margins, analysts believe China’s large-scale production capabilities and economies of scale will continue to keep prices competitive. Industry experts suggest that this policy adjustment could be aimed at optimizing trade strategies while promoting domestic consumption of renewable energy technologies. As global demand for clean energy solutions continues to grow, the ripple effects of China’s tax rebate policy changes will likely influence pricing dynamics and market competitiveness in the solar PV sector worldwide.

Mohan Gupta, solarquarter.com