Policy

In what analysts worldwide are sure to look back on as the last golden period for global solar – at least for the immediate future – China saw more impressive figures for PV manufacturing in the first half of the year. Then the government stepped in.

Decision comes just days after business and energy department prepares to end export payments for solar households, and with parliament in its summer recess. The permit has outraged green groups, the opposition Labour Party and nearby residents.

The 10% reduction in GST is an example to the UK government, which is seeking suggestions on how to drive solar take-up, but manufacturers are already calling for further reductions to fire battery storage in the nation.

The remarkable 4 GW of solar capacity added last year has seen Karnataka displace Tamil Nadu as the India’s renewables number one. And there is more to come, according to a new report, with PV set to account for a third of rising energy demand over the next decade.

Latest consultation exercise has been launched solely to buy time because Brexit is distracting officials from policymaking, according to a spokesman from the National Farmers’ Union.

Calling for a complete exemption of the 25% safeguard duty on solar equipment, India’s Solar Power Developers Association (SPDA) says, if imposed, it will jeopardize the viability of around 27,000 MW of solar projects involving an investment of more than Rs 1 lakh crore (around US$15 billion). Other key players also speak out against the tariff plans.

The U.K. Government is proposing closing both generation and export tariffs for renewables on March 31, 2019. The country’s solar trade association calls for clarity on the policy framework going forward, for both industry and potential investors.

The proposed safeguard tariffs on imports from China and Malaysia are expected to generate a number of painful short-term impacts. Overall they are not expected to change much in the market, however, says TrendForce. What will have a bigger effect is the EU’s final MIP decision, due in September.

The two-year period of the recommended safeguard duty is very short, discouraging any investment in setting up new solar manufacturing capacity, say analysts and companies pv magazine spoke to. At the same time, for solar project developers, the duty will impact tariffs to the tune of 12-15%, posing an immediate threat to viability of projects under execution, they add.

Following a strong year for clean energy spending, 2017 saw a 7% decline in renewable power investment – to around $298 billion – while the share of fossil fuels in energy supply funding rose for the first time since 2014, according to the International Energy Agency in a report published today.