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Chinese Local Governments Unveiled Subsidy Programs for Distributed Generation

published: 2014-11-21 17:42

With an aim of 8GW of new distributed PV generation (DG) installations in 2014, Chinese central government has been working on introducing policies because there was only 3.3GW of DG installations in the first half of 2014. Nine major Cities/Provinces finally completed their subsidy policies to support the nation’s DG target.

At the beginning of 2014, China’s National Energy Administration (NEA) officially announced the 14GW national goal – 6GW of ground-mounted PV installations plus 8GW of DG installations. The goal was slightly revised down to 13GW, yet the 8GW DG installation remains. NEA introduced a series of demonstration DG projects to prompt the policy but there was a huge delay due to issues including business model, financial problems and rooftop resources. Unclear subsidy programs can’t lure rooftop owners and investors, either. To tackle this, leading Provinces/cities like Shandong, Zhejiang and Shanghai designed their own specified incentives along with NEA’s FiT and new policy for DG installations announced in September. The compiled policies are as following:



Beijing City

To introduce incentive supports according to different capacities and uses.

Hebei Province

1.      RMB 1.3/kWh incentive: installation capacity >1MW, central-subsidy excepted, provincial grid connected, started operation before the end of 2014;

2.      RMB 1.2/kWh incentive: projects starting operation after 2015. (three-year subsidy).

Shandong Province

Add a RMB 0.2/kWh incentive to existing national FiT schemes.

Shanghai City

Incentives for commercial/industrial DG users, RMB 0.25/kWh; for individual/residential users, RMB 0.4/kWh. Five years.

Luoyang City, Henan Province

offer DG-operating companies a three-year incentive on the basis of installed capacity, RMB $0.1/watt.

Jiangxi Province

DG projects which are completely constructed and accepted will receive a 20-year, RMB 0.2/kW local incentive in addition to the national FiT.

Jiangsu Province

Ground-mounted, rooftop-installed, and BIPV-involved solar projects which are not receiving the national FiT will have incentives: RMB 1.3/kW in 2012, RMB 1.25/kW in 2013, RMB 1.2/kW in 2014, and RMB 1.15/kW in 2015.

Hefei City, Anhui Province

Beginning from 2014, increase incentives up to RMB 3/watt; 5kW at most for each household.

Jiaxing City, Anhui Province

DG installations in solar industrial parks can receive incentives of RMB 2.8/kW for three years; 5 cents lower year by year.

Wenzhou City, Anhui Province

1.      RMB 0.15/kW for projects which are completely constructed and grid-connected before the end of 2014.

2.      RMB 0.1/kW for projects which are completely constructed and grid-connected before the end of 2015.

3.      RMB 0.3/kW for residential rooftop DG systems, five years for each project.

Tongxiang City, Zhejiang Province

Introduce a “Triple Subsidy” program including:

1.      investment incentives: RMB 1.5/watt (only once);

2.      power generating incentives: RMB 0.3/kWh in the first two years and RMB 0.2/kWh from the third to the fifth year;

3.      rooftop-loan incentives: a RMB 30/m^2 incentive for rooftop landlords (only once)

Hangzhou City, Zhejiang Province

Add an extra RMB 0.1/kWh subsidy on the basis of electricity generated (2014~2015)

Fuyang City, Zhejiang Province

Projects starting operation from 2014 to 2016 can have a RMB 0.3/kWh subsidy in the first two years and a RMB 0.2/kWh subsidy in the third, fourth and fifth year.

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