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Government Subsidies Arrears In Solar Industry

Oct 26, 2017

There are three stages development of government subsidies arrears in photovoltaic industry.

First of all, immature stage, technology is not perfect, high cost of electricity industry, driven mainly from government subsidies.

Second, the growth period, the industrial capital of targeted subsidies and preferential policies to gradually get involved in the photovoltaic industry on the investment subsidy dependence decreased, the cost of electricity decreased, but still can not compared to the cost and power sources, corporate profits still rely on government subsidies.

Third, a period of rapid growth, benefit from technological innovation, the cost of electricity and thermal power industry gradually is dominated by industrial capital, to achieve parity, industry revenue is no longer dependent on subsidies.

At the beginning of 2016, renewable additional standards raised to 1.9 cents / kWh, but the overall subsidy gap still increases, as of the end of 2016, China renewable energy development fund subsidies cumulative gap has reached about 60 billion yuan.

In February 2017, the "notice" on the implementation of green power and renewable energy certificate issued a voluntary subscription trading system shows that green electricity certificates since July 1, 2017 officially launched the subscription, and clearly sell photovoltaic power enterprises of renewable energy green electricity certificates, the corresponding power no longer enjoy the national renewable energy tariff subsidy funds, the implementation of the policy is expected to to a certain extent, ease the subsidy gap pressure.