According to a report in China Daily on February 6, 2026
Export tax reforms and technology-led strategies signal a shift from price wars to value-driven growth in China’s photovoltaic sector.
China’s photovoltaic (PV) industry is entering a new phase of quality-focused growth as the government phases out export tax rebates. The shift encourages companies to leverage technological leadership, brand strength, and integrated solar-storage solutions, positioning the sector for long-term global competitiveness despite short-term market fluctuations.
Industry experts say the Chinese solar sector is moving from a price-driven race to a value-based competition, emphasizing technological advantage, scale, and product quality. The change comes as the government begins phasing out export tax rebates for photovoltaic products starting April 1, 2026, with a complete removal of battery product rebates by January 2027.
While the policy may temporarily increase export costs and pressure margins, analysts see it as a strategic intervention to curb low-efficiency competition, reduce trade friction, and encourage sustainable, high-quality growth.
“The withdrawal of continuous tax incentives marks the moment for the industry to compete in the fire of pure market dynamics,” said Liu Yiyang, executive secretary-general of the China Photovoltaic Industry Association.
China remains the global leader in solar manufacturing, producing over 90% of the world’s capacity in key supply-chain segments. However, fierce domestic price competition since 2024 has eroded profits and triggered international anti-subsidy investigations. By phasing out rebates, the government aims to stabilize export prices, rationalize competition, and allocate fiscal resources more efficiently.
Leading companies with strong technology, established channels, and brand reputation are expected to weather the adjustment period and drive higher industry concentration. The policy encourages a transition from “price wars” to “value wars”, where competitiveness depends on product quality, technological advancement, and integrated solar-storage solutions.
Market forecasts anticipate a short-term dip in newly installed domestic capacity in 2026 to 180–240 GW, but the sector is expected to rebound strongly, with annual installations projected at 280–350 GW by 2035. Emerging concepts such as space-based solar power could create additional growth opportunities if technological breakthroughs and cost reductions in orbital delivery are achieved.
“Even as the industry undergoes deep adjustments, companies equipped with technology and scale will lead China’s solar sector into a globally competitive, innovation-driven future,” Liu said.