Photovoltaic manufacturers in China are stepping up efforts to brace for policy changes as the government cancels or reduces export tax rebates for solar and battery products.
The new rules, effective from Wednesday, scrap rebates for photovoltaic items and cut the battery rebate rate from 9 percent to 6 percent, with a full phase-out scheduled by January 2027.
The adjustment was jointly issued by the Ministry of Finance and the State Taxation Administration in early January.
The China Photovoltaic Industry Association says the measure will help restore rational pricing in overseas markets, prevent export prices from falling too sharply, and reduce the risk of long-term trade disputes.
At the Hai'an bonded logistics hub in eastern Jiangsu Province, trucks loaded with solar modules lined up to clear customs before the deadline to take advantage of the last rebates.
Many shipments originated in Suzhou and Changzhou, both major photovoltaic manufacturing bases, and were sent overseas via multimodal transport.
A logistics company at the hub said business had surged since mid-March, with the new policy expected to raise export costs.
"We started seeing volumes rise from March 18, and between March 24 and 28, we hit a peak. Overall, import and export traffic will exceed 1,000 truck trips," said Zhao Feng, general manager of the company.
According to a photovoltaic firm based in Nantong City, its production lines were also running at full speed.
The company said that export orders accounted for more than 95 percent of its first-quarter sales, surging more than fivefold year on year, with shipments primarily bound for Bulgaria, Italy and Yemen.
"The new policy has pushed the industry to shift from price wars to value wars. It is expected to drive technological innovation to secure a premium, while ensuring product quality to enhance value across the full lifecycle. Last but not least, we ought to closely track overseas policy changes in different market areas," said Zhang Zhan, deputy general manager of the firm.
Other photovoltaic companies stand ready to expand global capacity layouts to stay competitive.
"To expand overseas markets, we need a global capacity layout. Looking ahead to different consumer markets in different regions, we must establish local production capacity or production lines," said Tan Hairen, board chairman of a company in Changshu.
Analysts also believe the adjustment will usher in a period of profitability recovery, moving the industry away from low-price competition toward value-based growth.
Chinese solar firms brace for tax rebate cuts, shift focus from low prices to added value
