Key facts
- China's solar cell and panel exports fell 21.4% in July.
- This marks the third consecutive monthly decline in exports.
- The decline is attributed to the removal of export tax rebates on photovoltaic products.
- The removal of export tax rebates took effect on April 1, 2026.
- The policy change increased costs for Chinese solar equipment.
China's solar cell and panel exports saw a significant drop of 21.4% in July compared to the same period last year. This marks the third consecutive month that exports have declined. The primary driver behind this decrease is the removal of export tax rebates on photovoltaic products, a policy change that became effective on April 1, 2026. This alteration in fiscal policy has effectively raised the production and export costs for Chinese solar equipment manufacturers. Consequently, the increased costs are making Chinese solar products less competitive in the international market, leading to reduced demand and the observed export slump. The trend suggests a potential shift in the global solar supply chain dynamics as other regions may become more cost-effective alternatives.