China: End of Solar Tax Credits — Impact on Africa

A major decision by China is reshaping the global solar panel market. It directly affects African countries that import their equipment from China. Gabon is therefore affected.

According to PV Magazine, China has eliminated its VAT rebates on exports of photovoltaic products effective April 1, 2026. For batteries, the rebate rate will be reduced from 9% to 6% through December 31, 2026. After that, a complete elimination is scheduled for January 1, 2027.

What is an export tax rebate? This was a subsidy that the Chinese government provided to its manufacturers. It enabled them to export at competitive prices. With the elimination of this subsidy, manufacturers are seeing their export costs rise. Consequently, they are naturally passing this increase on to their selling prices.

What is the actual impact on the prices of solar panels?

Analysts estimate that this elimination could drive up the prices of exported panels by several percentage points. Combined with other factors—strong global demand and production cuts—this measure is therefore contributing to the price increases observed since early 2026.

Will prices continue to rise? Experts are divided. Some believe that fierce competition among Chinese manufacturers will limit the price increase. Others, however, believe that the elimination of discounts will bring about structural changes in the market that will last for several years.

Why did China make this decision? First, it is seeking to reduce trade tensions with its partners—notably the United States and Europe. Second, China’s solar industry has grown large enough to survive without these subsidies.

What This Means for African Buyers

For African countries that import their solar panels from China, this decision could lead to slightly higher prices. However, the reality is more nuanced.

The price of solar panels remains at a historic low. Despite the price increase in 2026, solar panels still cost much less than they did 5 or 10 years ago. The cumulative price drop since 2010 has been so dramatic that it does not call into question the affordability of solar power.

Buyers with direct relationships are better protected. That is exactly the position of WOW2000. Thanks to our direct partnerships with certified Chinese manufacturers, we are able to maintain competitive prices despite global market fluctuations.

Should I buy solar panels now or wait?

Given this uncertainty, waiting is not the best strategy. In fact, every month that goes by without a solar system means another SEEG bill to pay and power outages to endure. Furthermore, if prices continue to rise, waiting will cost even more.

Our solar panels and our Complete solar kits are available now. WOW2000 is established in Gabon for 26 years with a warranty of up to 8 years at each facility.

Source: PV Magazine, January 2026 https://www.pv-magazine.com/2026/01/09/china-to-abolish-solar-export-tax-rebates-from-april/