The Chinese government's incentive for exporting photovoltaic modules and batteries came to an end this Tuesday (1st), a measure that impacts the prices of solar kits in the global market, including Brazil. The change was already expected by the sector.
O Canal Solar, inclusive, I had been warning about the end of the benefit since January. and its potential impacts. Earlier this month, professionals explained what the Brazilian market can expect with the end of the measure.
The end of Chinese incentives is approaching: solar kits will see another price increase.
Understand what's going on
Earlier this year, China announced it would cancel VAT (Value-Added Tax) refunds, a tax incentive granted to domestic exports, starting April 1st.
Until then, certain products in the photovoltaic supply chain had a mechanism for refunding up to 9% of the tax – something that helped Chinese companies reduce the final price of equipment in the international market.
It was decided that the incentive would be discontinued for photovoltaic modules starting April 1st, and that, in the case of batteries, there would be a transition period: the reimbursement would be reduced from 9% to 6% this month, being completely eliminated from January 1st, 2027.
From now on, manufacturers will no longer receive this tax credit, and the cost will tend to be incorporated into export prices. The measure directly affects markets highly dependent on Chinese imports, such as Brazil, where more than 90% of the equipment used in the solar sector is manufactured in the Asian country.
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