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China's PV Cell and Battery Tax Changes Put Supplier Assumptions Under Review

China will tax lithium-ion batteries from September 1, 2026, while specified advanced PV cells and selected battery technologies retain exemptions through 2028.

Procurement teams should separate verified policy treatment from supplier pricing assumptions.
Procurement teams should separate verified policy treatment from supplier pricing assumptions.

What changes in September

China will impose consumption tax on lithium-ion batteries from September 1, 2026, ending an 11-year tax exemption for that battery category. Specified advanced PV cells, including perovskite, tandem and gallium-arsenide cells, and sodium-ion, solid-state and fuel cells retain exemptions through December 31, 2028, subject to compliance conditions. Source: PV Tech.

Why procurement teams should revisit assumptions

The change can affect factory economics, product mix and export-price discussions, especially where solar, storage and module supply are bought together. It does not establish a universal price effect, so buyers should ask suppliers to identify the exact product classification and assumptions behind revised quotations.

Documentation matters alongside price

Eligibility for the specified exemptions requires relevant national-standard compliance and an initial test report. Product documentation, origin information and validity dates should be checked before a procurement team treats a claimed exemption as part of its cost model.

Buyer impact

Keep the mounting package technically separate but schedule it against confirmed module delivery and format. Ground-mount system quotes should identify the module dimensions and project delivery window they are designed around, so changes in upstream supply do not become field-fit problems.

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