China’s recent decision to cancel value-added tax (VAT) rebates on exports of solar and related products from April 1, 2026, is likely to increase project costs for India’s solar and battery energy storage system (BESS) developers. The export VAT rebate rate for battery products will be reduced from 9% to 6% from April 1 to December 31, 2026, China’s Ministry of Finance and State Taxation Administration announced in January.