China is ending tax rebates and export incentives for solar panels and batteries, likely raising costs for African solar projects that rely on Chinese imports.

Tesla, led by Elon Musk, is planning to buy $2.9 billion worth of equipment from Chinese firms to build large-scale solar manufacturing in the U.S., boosting global demand for Chinese solar products.

Africa already faces higher solar equipment costs due to logistics, tariffs, and small order volumes, making the continent vulnerable to China’s policy changes.

Experts expect a gradual, not sudden, increase in African solar costs, with some exporters possibly absorbing part of the price rise, but overall increases likely as the market adjusts. In the meantime South African is starting to produce their own solar panels, they have previously battled to compete against China imports. China ending their solar panel rebates might be the golden goose that local solar panel manufacturers are needing.