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China Ends 9% VAT Rebate on Solar Exports, Driving Up Prices

Higher costs now threaten the payback of rooftop systems in Germany.

Overview

  • China, which ended a 9% export VAT refund for solar goods Wednesday, set off price increases across the global module market.
  • German installers report up to 25% higher prices on newly imported modules, with a typical home system now roughly €600 more expensive.
  • Trade groups say warehouse stocks are buffering quotes for now, yet they expect noticeable price rises by late April as new shipments arrive.
  • The German Solar Association warns higher import costs are squeezing margins in a downstream‑heavy sector of about 100,000 workers and could weaken the economics of new projects.
  • China’s industry group backs the change as a fix for overcapacity and to lower anti‑dumping risks, while proposed German cuts to small‑system support could further sap demand if enacted.