Technical FAQs 4

How much will solar panels cost in China?

Analysts expect spot prices for solar modules to peak at CNY 0.73 ($0.10)/W and averaging around CNY 0.70 ($0.096)/W. Once the rush is over, prices may go down to CNY 0.70/W or even lower (see China’s FIT Policy End To Push Up Prices Across PV Value Chain).

Why are solar panels so expensive in China?

An increase in domestic demand for modules in China, the world’s largest solar PV market, is causing an increase in prices. According to pvXchange, the price of panels across all power classes increased by an average of €0.5 ($0.54)/W in March 2025.

How will China's solar policy change in Q4 2025?

Starting in Q4 2025, China will scrap its 13% VAT export rebate on solar modules and storage systems. This fiscal change will ripple through global pricing since China supplies over 80% of the world’s solar modules and 90% of lithium iron phosphate (LFP) battery packs. That policy shift means developers worldwide will face higher costs.

Will EU-made solar modules be more expensive than Chinese imports?

A report by SolarPower Europe and Fraunhofer ISE finds EU-made solar modules cost €0.103 ($0.12)/W more than Chinese imports, but targeted policies could close the gap and help reach the EU’s 30 GW annual manufacturing target by 2030.

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