Shares of solar cell and module makers such as Waaree Energies, Borosil Renewables and Premier Energies surged 3% on 12th January after China announced changes to its export tax rebate policy to reassure trade partners amid rising exports.

From 1st April, the Chinese government will remove value-added tax (VAT) rebates on 249 products. These include solar cells, ceramic roof tiles, and lithium hexafluorophosphate. VAT rebates on photovoltaic and other related products will also be withdrawn from 1st April, 2026.

In addition, rebate rates on 22 battery-related products, such as lithium-ion batteries, will be reduced to 6% from 9%. This reduction will be completely phased out from 1st January 2027.

The move comes at a time when Chinese industries, including the solar sector, are facing overcapacity and intense price competition.

While Premier Energies has limited export exposure, Waaree Energies has a stronger export presence. The company is yet to comment on the development.

At 10:39 AM, Waaree Energies was up 0.66% at Rs 2,561.50, and Premier Energies was trading 1.32% higher at Rs 726.90 on NSE.

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