China pushes up African input prices

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Solar and storage developers are expected to face higher procurement costs starting in Q4 2025, following Chinese government-imposed production cuts and the withdrawal of its 13% export VAT rebate. According to a report by Wood Mackenzie, solar module prices will rise by about 9% in Q4 2025, with additional increases likely through 2026.

• China’s heavy investment in subsidising renewables to capture global market share is backfiring at home. Its six largest solar manufacturers saw combined losses double to $2.8 billion in the first half of the year.

• Dominance of the global renewables supply chain means domestic Chinese policy shifts have far-reaching impacts.

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