Under the terms of the settlement, China will supply up to 7GW of solar products every year for price no less than 56 euro cents per watt without any duties.

However, if the exports exceed the proposed quantity or if they are sold for lesser price, the products would be liable to charges of about 47%.

These new regulations will be executed from 6 August 2013.

EU Trade Commissioner Karel De Gucht said the commission is pleased with the price undertaking submitted by China’s solar-panel exporters, which is in line with EU’s trade defense legislation.

"We are confident that this price undertaking will stabilise the European solar panel market and will remove the injury that the dumping practices have caused to the European industry," added Gucht.

EU had earlier accused China of dumping the excess solar panels produced into the European markets, thereby hampering the growth of domestic solar manufacturers.

Eventually, the trade commissioner had suggested introduction of punitive charges on the China-made solar products sparking a dispute.

The Wall Street Journal quoted the Chinese Chamber of Commerce as saying, "The price undertaking agreement reflects the wishes of the majority of the Chinese industry and the bilateral consultations of China’s solar-products industry to continue exports to Europe and to maintain reasonable market share."