»China’s solar modules market grows despite the slowdown in its domestic solar industry,« Global Data
Post date: 09/12/2019 - 16:17
The decline in annual installations of PV in China does not seem to have had an impact on the country’s solar PV manufacturing industry. »The country’s solar PV exports stood at 58 GW just in the first nine months of 2019, which is a big boost for the industry and this is despite the tariff regime for solar panels implemented by the Trump administration in the US,« according to consultancy Global Data.
Earlier this year, the federal government of China confirmed an end of FiT program for large scale solar and wind power capacity. China’s administration is preparing a move to a reverse auction-based subsidy scheme which would encourage utility scale solar project development – but at lower cost and in a more controlled manner.
In July 2019, China’s National Energy Administration (NEA) approved 22.78 GW of solar capacity in the first PV tender. A total of 4,338 PV projects with a combined capacity of 24.55 GW were proposed to be developed, but only 3,921 projects totaling 22.78 GW received the official approval. The feed-in-tariffs approved range from CNY 0.2795 ($0.041) per kWh to CNY 0.55 ($0.08) per kWh. »Global Data figures show that the global solar PV market is expected to see a 13 percent growth in installations, from 92 GW in 2018 to 105 GW in 2019. This has been the key reason for the growth in exports from China, considering the cost differential between Chinese and other manufacturers,« says Harminder Singh, Director of Power at Global Data.
In June 2018, the Chinese government released the Solar PV Power Generation Notice, imposing installation caps and reduced the feed-in tariff (FiT) for solar projects in the country by CNY 0.05/kWh ($0.0075/kWh) across the board. »Consequently, the annual capacity addition, which was 53 GW in 2017, dropped to 44 GW in 2018 and Global Data estimates the annual capacity addition in 2019 will drop further to 41 GW«, says the consultancy. »The capacity additions are expected to be in the range of 43 to 45 GW during 2020 to 2022, which would lead to increased domestic demand.«