China cuts PV funding

Germany’s Financial Times Deutschland has reported that under the Golden Sun Program, investors will receive just 7 Chinese Yuan Renminbi (CNY) per Watt (around 85 euro cents) for new photovoltaic installations. The news was announced by the Chinese Treasury this year.

The changes mark a 2 CNY drop per Watt for systems kitted out with crystalline modules and a 1 CNY decrease for thin film installations. They have been introduced in response to the increased demand for photovoltaics in China.

The government introduced the solar incentive program in 2009. It is reported that around half of all photovoltaic plants in China have been funded through it.

Meanwhile, the country’s FIT, introduced last summer, is to be cut by 13 percent, as was laid out last year.

Despite the fact that the subsidies are to be reduced, the Chinese industry is confident that its domestic market will further grow in the coming years. Specifically, it is estimated that around five GW will be added to the grid this year. Meanwhile, in 2013, it is believed that seven GW of new capacity will be installed.

According to 2011 figures, a total of 2.9 gigawatts (GW) has been installed in the country to date. Most of this – around two GW – was added to the grid in 2011, following the new FIT.

Translated and edited by Becky Stuart.