NAIROBI, Kenya (AP) — China’s decision to end value-added tax rebates on solar panel exports and phase out incentives for making battery storage equipment could push up the cost of solar installations in Africa, which relies heavily on imported Chinese technology.
The changes, expected to take effect April 1 for solar panels and beginning next year for batteries, may complicate efforts to expand renewable energy to close vast electricity gaps across Africa, though experts say the impact likely will be manageable.
“We are likely to see solar panel prices increase in Africa because most of the inputs come from China,” said Wangari Muchiri, an energy analyst focused on Africa’s clean energy sector. “Removing the rebate will add to existing costs, especially when you consider shipping, logistics, and other import fees.”
Africa already pays significantly more for solar equipment than other regions because of transport costs, smaller import volumes and tariffs.
China’s policy change reflects broader shifts after fierce competition among Chinese manufacturers pushed solar module prices to as little as $0.07 per watt in 2025, from $0.25 in 2022. That helped drive global adoption of solar energy, but left many companies with heavy losses.
Some Chinese companies built VAT rebates into their export pricing, effectively transferring those subsidies to their overseas buyers. But Beijing has cut back on those payments as it reins in overcapacity and shifts toward more advanced technologies.
Rather than a sharp price shock, the loss of such rebates will likely gradually raise prices, setting a firmer global price floor.
“The changes are significant, but not catastrophic,” said John van Zuylen, CEO of the Africa Solar Industry Association.
“The entire recent solar boom was built on artificially cheap Chinese pricing,” van Zuylen said. “That era is now ending.”
“When a structural rebate is removed, exporters typically either absorb the cost, raise prices, or reduce discounting,” van Zuylen said. “African countries will likely feel this as a gradual upward shift in pricing rather than a single dramatic spike.”
Even with modest price increases, solar is expected to remain competitive across much of the continent since it’s the cheapest source of energy in Africa, Muchiri said.
“Even with higher panel prices, it will still be significantly cheaper than alternatives like diesel,” she said.
“It will increase project costs slightly and might delay the project construction pipeline due to supply chain shortages and contractual changes, stockpiling rush, congestion in shipment for the countries heavily reliant on Chinese imports,” said Sonia Dunlop, CEO of the Global Solar Council, an industry association.
Battery storage, critical for providing electricity after sunset, may face a bigger challenge as incentives are phased out through 2027. Higher costs may affect smaller users the most, van Zuylen said.
“Batteries matter more than panels for Africa because storage is what makes solar reliable for off-grid and backup users,” he said.
Basil Abia, co-founder of the Nigerian energy research firm Truva Intelligence, said that “batteries have historically been expensive, and many solar installations in Africa were built without them.”
“Only recently have we started seeing more systems combining solar with battery storage,” Abia said.
He said that even without rebates, solar modules remain relatively affordable. Through 2024 and early 2025, module prices fell sharply from around $0.25 per watt in previous years to as low as $0.07 per watt.
Demand for solar, which now supplies 3% of power generation in Africa, is expected to continue growing as storage improves reliability. Meanwhile, the heavy dependence on Chinese equipment is drawing attention to limited local manufacturing capacity.
“The VAT removal will slow, but not reverse Africa’s clean energy transition,” Abia said. “Countries that use this moment to accelerate local manufacturing will emerge stronger. Those that do not will remain exposed to Beijing’s next industrial policy adjustment.”
The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
Africa’s solar boom faces higher costs as China cuts export subsidies 2026 IUSTITIA.BG – Investigations 2009-2025 2026-03-22 03:39:53
Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law
Гладни ли сте? Mr. PER е на път!
Скара на истински дървени въглища, прясно приготвена храна и удобна онлайн поръчка в Бургас.
🔥 Mr. PER – Краснодар
Централен пазар „Краснодар“
ул. „Св. Климент Охридски“ № 49
Бургас
🔥 Mr. PER – Меден рудник
Третата спирка, блок 46
ж.к. Меден рудник
Бургас
Истински въглища. Истински вкус. В Бургас!
skaranadarvenivaglishta.com