In order to develop distributed PV generation (DG), China’s National Development and Reform Commission (NDRC) confirmed the feed-in tariff (FiT) prices for DG to be RMB $0.42/kW last year. Governments of several provinces also released local DG subsidy programs for further promotion after the National Energy Administration set an annual goal of 8GW installation this January.
At the beginning of this year, Jiangxi provincial government set a supplemental RMB $3/Wp subsidy program for DG systems which have completed installation and grid-connection before June 30th. At the same time, Zhejiang Province’s government upgrades the national FiT scheme to RMB$0.52/kW, offering extra RMB$0.1 subsidy per kW. Moreover, the municipal government of Wenzhou City, Zhejiang, will subsidize its local residential DG systems an additional RMB$0.3/kW program, making a RMB$0.82/kW FiT price which will last for five years. Governments of Anhui, Jiangsu and other provinces have also released subsidy schemes for their local markets to encourage people installing DG systems.
As it seems difficult for the nation to achieve its 8GW DG installation target in 2014, it’s reported that Chinese authorities will not only offer more subsidy programs but also adjust related policies. It will refer to German and Japan’s experience in promoting DG system as well. As long as the demand continues to grow, it’s forecasted that there will be a huge amount of new DG installation in the second half of 2014.