It is reported that around October this year, the long-simmering request for opinions on lowering the distributed photovoltaic electricity price subsidy will finally be issued. Although the final standard for lowering the distributed photovoltaic subsidy still needs to be submitted to the National Development and Reform Commission for comments, the distributed photovoltaic subsidy will be lowered from January 1, 2018 if no accident occurs.
China's Distributed Photovoltaic Subsidy Will Be Lowered from January 1, 2018
Previously, the Notice on Adjusting Benchmark Electricity Price for New Energy Sources (Draft for Comments) issued by the National Development and Reform Commission in 2016 proposed that the subsidies for roof distributed "self-use allowance" and "all self-use" would be reduced from 0.42 yuan per watt currently implemented to 0.25 yuan in Class I resource area 0.2 yuan, 0.25 yuan in Class II resource area and 0.3 yuan in Class III resource area.
However, according to sources, due to the complexity of the calculation method, the above subsidy method may not be adopted, and the lowering standard of distributed subsidy will most likely adopt the 0.3 yuan /KWh calculation method.
People in the industry agree with the downward adjustment of distributed photovoltaic electricity price subsidies. On the one hand, photovoltaic costs are decreasing every year, while distributed subsidies have not changed for 4 years. On the other hand, the current subsidy has led to a large gap in the amount of subsidy. At present, China's renewable energy subsidies, including distributed photovoltaic electricity price subsidies, are already running out of money. According to calculations by the Energy Research Institute of the National Development and Reform Commission, China's renewable energy subsidy fund gap will be about 50 billion yuan by the end of 2016. According to the current subsidy model, industry insiders estimate that the subsidy gap will expand to more than 300 billion yuan by 2020.