China Confirms RMB 1.5 Billion Solar Subsidy For 2020

National Energy Administration, China Confirms RMB 1.5 Billion Subsidy Budget For New Large-Scale & Rooftop Solar Projects; Subsidies For Offshore Wind Scrapped
10:43 AM (Beijing Time) - 13. March 2020
china flag

The Chinese solar industry can look forward to RMB 1.5 billion in subsidy from the government for 2020, which is only half of RMB 3 billion that was allocated in 2018.

Key Takeaways

  • Chinese government has allocated RMB 1.5 billion as total subsidy budget for the year 2020 for solar
  • Large scale solar power projects along with C&I and distributed generation plants will be eligible for RMB 1 billion subsidy amount
  • Rooftop solar for residential segment can avail of RMB 500 million, as per the NEA
  • Offshore wind has been stripped off all subsidies while those for onshore wind are about to get over in 2021, reports CX Tech

China’s National Energy Administration (NEA) has confirmed it will shell out RMB 1.5 billion ($214 million) in subsidy for new solar power projects in 2020, as shared in its draft proposal earlier this year. Of this total amount reserved for the year, RMB 1 billion ($143 million) will be available for large scale solar power projects, along with commercial and industrial (C&I) and other distributed generation plants. The other RMB 500 million ($71.48 million) can be availed by rooftop solar systems.

This subsidy amount will be available for new solar power projects that enter construction before the end of 2020. Technology news portal CX Tech of the Caixin Global news service reported that the application period for the auction has been extended to June 15, 2020 . The authority has given one more month to solar and wind farm applications to connect their power plants to the state’s electricity grid to the end of April 2020.

While solar has got some subsidy amount, even though it is only half of RMB 3 billion that was allocated in 2019, new offshore wind power projects will get no financial support at all this year. Subsidy for onshore wind will be moved to 2021, as per the report.

The Chinese government has been encouraging its heavily subsidized renewables industry to wean off subsidies and go in for competitive auctions instead to stake claim to the money.However, the transition has resulted in a decreasing market the third year in grow. In 2019, China installed 30.11 GW of new solar power capacity, compared to 44 GW installed a year back (see NEA: 30.11 GW New Solar Installed In China In 2019).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

Write, follow the author.
Email

Anu Bhambhani