The expense of providing the preferential tariff will be shared between the central, provincial and municipal governments, reports Bloomberg New Energy Finance, which quotes the Shandong government in a statement posted on its website. In addition to a national renewable energy subsidy, 55 percent of the costs will be 55 covered by the province, and 45 percent by the plants local government.
The eastern Chinese province will pay a subsidy of 10 yuan per watt for selected solar rooftop and building-integrated PV plant. The provincial government said its policy will be in line with a national strategy to push private investment in solar power businesses.
Shandong currently has 3,165 megawatts (MW) of solar capacity and is building eight projects under Chinas Golden Sun program, which will subsidize about 50 percent of project costs. The government expects to complete all of the 23 MW Golden Sun projects by the end of this year.
The provincial government also plans to reach 50 MW of solar capacity by the end of the year, with 38 MW of ground-mounted plants, as well as 10 MW of rooftop and two MW of building- integrated solar power plants.
Shandong aims to have a total of 120 MW of ground-mounted solar capacity by 2012. The province also targets 24 MW of rooftop and six MW of building-integrated PV plants by 2012, the government said in its statement.