State Adjusted Subsidy Policy to Support Photovoltaic Industry

(China Glass Network) Recently, Ministry of Finance, Ministry of Science & Technology and National Energy Administration issued “Notice about Golden Sun Demonstration Work” (hereafter referred to as “Notice”) to speed up the application of photovoltaic generation, promote the sustainable and stable development of PV industry.

The support policy is mainly aimed at the terminal, including users PV generation projects in economic and technological development zones, high-tech development zones, industrial parks and business districts; disperse users PV generation projects near industrial and commercial enterprises; centralized users PV generation projects applying the combination of intelligent power grid and micro-grid technology; independent PV and wind-light complementary generation projects aiming at solving electric issues in remote areas .

“Notice” regulates that the subsidy of PV generation projects for users is adjusted to 7 yuan per watt in 2012. And the subsidy for independent PV and wind-light complementary generation projects will be determined separately.

LIN Boqiang, the director of China Center for Energy Economics Research at XMU, said, “ The ‘Notice’ reflects that state is aware of difficult situation in this industry, especially polysilicon. Previously, 90% of PV generation enterprises focused on developing foreign market. Along with further deterioration of the international economic situation, photovoltaic power generation enterprises run at a substantial loss. If the enterprises turn to the domestic market in the short term, there are many existing problems, such as, high cost. So the shift needs transition of at least 2 to 3 years. Above all, enterprises shall continuously promote technological progress, government shall give more subsidies and preferential policies for terminal area.”