Key facts
- China's solar cell and panel exports decreased by 21.4% in July compared to the previous year.
- The reduction in exports is a direct consequence of China removing export tax rebates for photovoltaic products.
- This policy change, effective April 1, 2026, aims to stabilize international market prices and mitigate trade disputes.
- Prior to the policy change, Chinese solar exports saw a significant surge in March 2026.
China's solar cell and panel exports experienced a 21.4% year-over-year decline in July, marking the third consecutive month of decrease. This downturn is attributed to the removal of export tax rebates on photovoltaic products, which became effective on April 1, 2026. The Chinese government's decision aims to foster more stable pricing in international markets and reduce trade friction.
The China Photovoltaic Industry Association has endorsed this policy shift, stating it will help restore rational pricing and mitigate trade risks for China. The change was anticipated to increase export costs, making Chinese solar products less competitive globally.
In the lead-up to the April 1 deadline, Chinese solar exports saw a significant surge, reaching a record high of 68 gigawatts (GW) in March. This spike was driven by robust demand for clean energy solutions in South and Southeast Asia, exacerbated by oil supply shocks impacting energy prices.
Despite the overall export decline since May, certain regions continue to show strong demand. Shipments to Africa, Southeast Asia, and South Asia have seen growth over the summer. However, exports to Europe, a major market for China, fell by 18% in June, while those to the Middle East plummeted by 38%.