China Slashes Subsidies For Residential & C&I PV

• Following its announcement of RMB 1.5 billion subsidy for large scale and rooftop solar power projects in 2020, China has now revealed the list of subsidies for various segments
• Residential rooftop solar systems will get RMB 0.08 per kWh while C&I projects will be eligible for RMB 0.05 per kWh subsidy amount
• Solar projects built under poverty alleviation program will be spared the cut

The Chinese National Development and Reform Commission (NDRC) has lowered subsidy levels granted for solar power systems for various segments. The new rates will come into effect from June 1, 2020.

For residential solar systems selling excess power to the grid, the cut is as high as 56% on annual basis to a total of RMB 0.08 (0.011) per kWh. Commercial and industrial (C&I) distributed solar power projects that are for captive consumption and any excess power is sold off to the grid, will get RMB 0.05 ($0.007) per kWh.

Caixin Global reported that distributed solar projects selling power to the state will be required to enter an auction to win subsidies that shall not exceed RMB 0.05 ($0.0070) per kWh. There will be no cuts for solar plants built under poverty alleviation programs. Power generated by large scale solar systems awarded under government auctions in Northwest China can be sold for RMB 0.35 ($0.049) per kWh and those in northern and central parts will be able to sell power for RMB 0.4 ($0.056) per kWh.

Plants in coastal, southern and eastern China will be able to sell power for RMB 0.49 ($0.069) per kWh.

In March 2020, the National Energy Administration of China confirmed RMB 1.5 billion as subsidy budget for new large scale and rooftop solar projects of which RMB 1 billion has been reserved for large scale solar, C&I and other distributed generation plants (see China Confirms RMB 1.5 Billion Solar Subsidy For 2020).