In a policy that is the first of its kind in China, the new subsidy standards stipulates a 0.42 yuan, or 7 cents, subsidy for every kilowatt-hour of electricity produced by distributed photovoltaic power units.
China’s National Development and Reform Commission has issued new subsidy standards for distributed solar power generation projects in a bid to curb air pollution.
In a policy that is the first of its kind in China, the new subsidy standards stipulates a 0.42 yuan, or 7 cents, subsidy for every kilowatt-hour of electricity produced by distributed photovoltaic power units. Unlike the previous subsidy standard which only applied on a project-investment basis, the new standards issued will cover units that were not included in the previous policy, reported China Daily.
In addition, the Chinese government will also lower the price of the power generated by some PV stations, for example, in solar-rich western regions; the price will be lowered to 0.9 yuan or 0.95 yuan per kWh from the previous standard’s 1 yuan per kWh. The price of the power generated by PV stations in the eastern regions however, will be kept at 1 yuan per kWh.
According to the N.R.D.C., the policy will apply to projects registered after September 1 of this year, or registered before that date but will only be put in use after the beginning of next year. The subsidy commitment is said to last at least 20 years.
“These policies will be a boost to China’s PV industry. We hope that companies will be encouraged to scale up their product’s standards,” said Li Caihua, an official with the N.R.D.C.
On the other hand, China has also made subsidy plans for power plants that will install equipment to limit air pollution. Starting September 25 this year, power plants that will install equipment to remove air pollutants such as nitrogen oxide will receive a subsidy of 0.01 yuan per kWh of electricity produced. Plants that produce power under a certain particle-emission standard will also receive a subsidy of 0.002 yuan per kWh.
“People in the environment-protection sector have long awaited these policies. The measures will leverage behavior to curb air pollutants and boost the related-equipment industry,” said Liu Biangjian, an official at the Ministry of Environmental Protection. – EcoSeed Staff