China targets sharply to cut PV subsidies in 2019

The China government is looking to sharply cut subsidization for the solar PV industry in 2019, with plans to set an upper limit of CNY3 billion ($440 million) on subsidies based on feed-in-tariffs (FIT), according to media reports. The amount will slump 81.6 percent from subsidies totaling CNY16.3 billion ($2.41 billion) in 2018. If the cut materializes, total solar PV installations completed in 2019 and entitled to FIT-based subsidization are estimated at 15 to 25 GW in total. According to Taiwanese news portal »Digitimes«, the government is discussing the new scheme with PV industry representatives. The FITs being discussed include CNY 0.18 ($0.02) per kilowatt-hour for distributed PV systems at residential buildings; CNY0.1 ($0.01) per kilowatt-hour for such systems at commercial buildings or facilities and factory buildings; CNY 0.4 ($0.05) per kilowatt-hour, CNY 0.45 ($0.06) per kilowatt-hour and CNY 0.55 ($0.08) per kilowatt-hour for PV power stations. The rates are for first quarter 2019 and will be lowered by CNY 0.01 ($0.001) per kilowatt-hour quarterly for the rest of 2019, says Mercom Capital Group.

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