China released PV FIT policy effective at July 1

The Price Bureau of China’s National Development and Reform Commission (NDRC) released a notice regarding »Improving Issues Related to Feed-in-Tariffs (FIT) for Solar Photovoltaic«. According to the consultancy Asia Europe Clean Energy (Solar) Advisory Co. Ltd. (AECEA), the notice stipulates the FITs for centralized, ground-mounted systems across the three designated regions in China: region 1: CNY 0.40 per kWh; region 2: CNY 0.45 per kWh; region 3: CNY 0.55 per kWh ($0.059; $0.066; $0.081). Subsidies for village-type poverty alleviation projects (up to 0.5 MW) remained unchanged and are for resource zone 1, 2, and 3; CNY 0.65 / 0.75 / 0.85 per kilowatt-hour, respectively.
Commercial and Industrial (C&I) distributed solar PV power projects designed for self-consumption and excess power feeding back into the grid are subject to a FIT of CNY 0.10 per kWh. »However, such distributed PV projects seeking a 100 percent feed-in mode of operation are subject to the same FITs applied for centralized, ground-mounted systems«, says AECEA. »The notice clearly stipulates that above mentioned FITs, regardless of type and operation mode, are for guidance and are therefore subject for competition, i.e. it is expected that in coordination with the central government, local authorities shall conduct auctions and the results will enter a unified national bidding process from whom the NEA will eventually select the most competitive projects.« Residential solar PV system, regardless subject to self-consumption and excess power fed into the grid or 100 percent feed-in are entitled to FIT of CNY 0.18 per kWh and are included in the 2019 FIT subsidy budget. The notice shall become effective on July 1, 2019.
As reported, in June 2018 NDRC, the Ministry of Finance (MOF) and the National Energy Administration (NEA) jointly released its official »2018 Solar PV Power Generation Notice«. According to AECEA it is still unclear »how the central government will deal with PV systems connected to the grid between July 1, 2018 and June 30, 2019 which amounts to an estimated 28 to 30 GW.« The consultancy assumed that they will be included in the 2019 subsidy catalogue. AECEA expects that within the remaining weeks till the end of June, »NEA will release further policies designed to address these and other several outstanding issues.« During this period demand is expected to remain weak, however Q3 and Q4 an installations rush is being anticipated, because by then NEA »should have released the list of projects eligible for FIT support in the running year.« In light of a weak first quarter 2019 and an anticipated continued weak demand till early July, AECEA has lowered its full year guidance from previously 35 to 40 GW to 32 to 34 GW.
© PHOTON

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