IN LONDON: Further pressures are coming to light for households investing in clean energy systems in the UK, amid China’s latest export policy.
China has decided to scale back export tax rebates for solar and battery products, which is feeding through into higher installation costs in the UK energy market.
From 1 April 2026, China ended export value-added tax (VAT) rebates on photovoltaic (PV) products and reduced rebates on battery exports from 9% to 6%, with the remaining support due to be removed entirely in 2027.
According to Glow Green data, the average solar installation costs have risen around 12% following the policy change.
Glow Green says the rebates ensured Chinese-made panels and batteries were competitively priced for years in overseas markets, including the UK.
British battery manufacturer GivEnergy has also filed a notice of intention to appoint an administrator, adding to the pressures that currently faces the industry.
Glow Green’s renewables export Lloyd Greenfield explains that this is a clear example of how challenging the current environment is for UK renewable manufacturing and why a stronger government is needed to protect domestic production.
“We are seeing the UK’s dependence on Chinese-made components translating directly into higher costs for households,” Greenfield says.
“As export support is removed, the additional costs don’t disappear; they are built into the price homeowners are quoted for solar and battery systems.”
UK’s solar dream
Greenfield notes this also raises a wider concern for the UK’s clean energy future.
“Heavy reliance on China risks slowing progress toward net zero, as it leaves the country exposed to overseas supply chains, price shocks and policy changes outside its control,” he says.
China dominates the global solar industry, accounting for more than 80% of the manufacturing supply chain.
Data from the China Photovoltaic Industry Association highlights that in 2024, China produced 93.2% of the world’s polysilicon, 96.6% of wafers, 92.3% of PV cells, and 86.4% of PV modules.
Greenfield notes that China’s export clampdown may push up the cost of panels and batteries, “but it doesn’t have to kill the solar dream for British households”.
“With the right support from government, and a few simple tricks like checking export rates, shopping around for quotes and squeezing every penny out of the power they generate, families can still use solar to cut their bills, boost their energy security and keep the UK’s net zero ambitions alive,” he says.
According to the UK Government, data shows that more than 27,000 solar installations were completed in March 2026. This figure represents the highest monthly total since 2012 – bringing the total number of solar installations across the UK to more than two million for the first time.
Solar capacity increased by 11.7% over the past year, adding 2.3 gigawatts of clean, homegrown electricity to the nation’s energy mix.
Government support
The increase in the UK’s solar installations comes as the federal government has invested more into solar power across homes, schools, and communities to deliver its clean power ambitions and help cut energy costs.
These investments included consenting Springwell Solar Farm – the largest power-producing solar farm in UK history – as well as driving forward with the rollout of ‘plug-in’ solar panels to be available in shops within months and save people money on their bills and ensuring solar panels are fitted on new homes in England as standard.
In addition, subject to final approvals, the UK Government is providing a further £100 million ($189.12 million) for the Social Housing Fund, helping deliver up to 57,000 solar installations for households during this financial year.
Solar energy is critical for transitioning to a sustainable, low-carbon economy, reducing reliance on fossil fuels and mitigating climate change. Solar panels rely on a combination of critical minerals and metals to convert sunlight into electricity, with silicon being the primary semiconductor.
The key minerals in solar panels also include silver, copper, aluminium, and zinc.
Write to Aaliyah Rogan at Mining.com.au
Images: IEEFA
