China to Remove Solar Export Subsidies, Impacting Indian Solar Firms
China will eliminate rebates on photovoltaic products starting January 9, 2024, and reduce battery rebates from 9% to 6% by April 1, 2026, impacting global solar prices. Indian firms Waaree and Premier Energies may benefit from this shift, with Waaree projected to increase its export revenue significantly, while Borosil Renewables faces domestic competition despite improved profitability. The rebate removal could raise costs for solar plant construction overall.
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China announced the removal of rebates on photovoltaic products starting January 9 and reduced battery rebates from 9% to 6% from April 1, 2026, phasing out entirely by early 2027. China, which holds 80% of the global solar panel value chain, will see global prices increase proportionately.
Indian firms Waaree (5.4 GW cell capacity) and Premier Energies (5.1 GW cell capacity) may benefit, with Waaree increasing export revenue from 17% in FY25 to 47% in Q2FY26. Premier's revenue is primarily domestic.
Both companies have healthy margins and strong order books. Borosil Renewables, facing competition from cheap imports, has seen profitability improve but remains vulnerable to domestic competition. Neogen Chemicals and Himadri Speciality Chemical are expanding in lithium-ion battery materials. Overall, while the rebate removal may benefit some companies, it could increase costs for solar plant construction.
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