April 3, 2026 – Effective April 1, 2026, China has eliminated export tax rebates for 249 PV product categories and reduced the rebate rate for lithium battery and energy storage products to 6%. The policy adds approximately $0.13 per dollar of PV exports and increases costs for lithium battery shipments by about 7%. In response, leading manufacturers have raised export quotes and accelerated overseas capacity deployment, signaling further industry consolidation.

Cost pressures are quickly transmitting through the market. Major module suppliers including JinkoSolar, Trina Solar and LONGi Green Energy have issued price hikes, with some high-power module quotes rising as much as 50%. For smaller enterprises with gross margins hovering between 3% and 5%, the rebate elimination adds several percentage points to costs, squeezing their already thin survival margins. Ren Xiankun, head of business operations at Shandong Linuo PV, noted that price-sensitive markets are hardest hit: "The Middle East, Africa and Latin America are where price wars happen. We're now renegotiating with long-term European clients".

Under cost pressure, industry leaders are accelerating overseas capacity expansion. LONGi Green Energy recently announced additional investments in its Vietnam and Malaysia facilities, along with a 20GW wafer base in Saudi Arabia. JinkoSolar plans to build a 10GW cell and module plant in Saudi Arabia through a joint venture, deeply integrating into local supply chains. CATL is speeding up construction of its third European battery plant. According to incomplete statistics, Chinese PV and lithium battery firms have announced over 20 overseas plant projects since the start of 2026, focused in Southeast Asia, the Middle East and North America.

Energy storage is seeing similar momentum. In February 2026 alone, Chinese companies secured 30 overseas energy storage orders totaling 35.71GWh. CATL is advancing a 10GWh storage project with European partners, BYD signed a 2GWh cell supply deal with Turkey's Solinved, and Sungrow holds over 40GWh in orders, with Europe and the Middle East accounting for more than half. Benefiting from a "rush to ship" ahead of the policy change, domestic energy storage manufacturers are running at full capacity, with residential storage product shipments growing several times over.

A chief analyst at China Securities noted that while exports face short-term pressure, leading companies can hedge policy risks through global footprints, and industry concentration will increase in the long run, potentially strengthening Chinese champions' global pricing power. Industry experts expect a new wave of overseas plant construction by China's new energy sector in the next two years.