Quick summary: China’s decision to remove export tax rebates on solar panels and batteries is driving up installation costs in the UK, with average prices rising by around 12% since the policy took effect in April 2026. The change leaves British households paying more for clean energy systems at a time when solar uptake is at a decade high, raising concerns about the UK’s dependence on Chinese supply chains. Industry voices are calling for stronger government support for domestic manufacturing, while homeowners are advised to review their Smart Export Guarantee rates to offset some of the financial impact.
Recent changes to China’s export policy are pushing up the cost of solar installations in the UK, adding financial pressure to households investing in clean energy. Exclusive data from Glow Green shows average installation costs have risen by around 12%, though wider global supply chain pressures are also contributing.
From 1 April 2026, China ended export 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. These rebates had kept Chinese panels and batteries competitively priced in overseas markets for years.
Lloyd Greenfield, renewables expert at Glow Green, said: “We are seeing the UK’s dependence on Chinese made components translating directly into higher costs for households. 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. It is another clear example of how challenging the current environment is for UK renewable manufacturing, and why stronger government support is needed to protect domestic production.”
The difficulties facing the industry extend beyond import costs. GivEnergy, a British battery manufacturer and one of the UK’s leading residential battery storage brands, has filed a Notice of Intention to Appoint an Administrator.
Despite the rising costs, UK solar installations reached a decade high in March 2026, with more than 27,000 systems completed, pushing the total past two million for the first time as households seek protection from energy price rises.
Greenfield also raised concerns about the broader implications for the UK’s net zero ambitions. “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.”
How to earn more from your solar panels
Greenfield advises that homeowners can take practical steps to offset rising costs by maximising returns on the electricity they export.
- Check your Smart Export Guarantee (SEG) rate on your latest bill or online account. If it is only a few pence per kWh, you are likely being underpaid.
- Compare current export tariffs online. Some of the best deals pay several times more per unit than the basic rates many households are on, which can add up to hundreds of pounds a year.
- Call your supplier and ask what export tariffs are available and whether you can switch to the highest paying option.
- If your supplier cannot offer a competitive rate, consider switching. Moving to a provider with a stronger SEG tariff can mean earning significantly more from the same panels.
- Repeat this process annually, as tariffs change regularly.
Greenfield said: “China’s export clampdown may be pushing 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.”