In a significant development for China's photovoltaic industry, companies that had been hit by the EU's "double anti-dumping" measures finally received positive news. On July 15, the Chinese government website released the "Several Opinions of the State Council on Promoting the Healthy Development of the Photovoltaic Industry," commonly referred to as the "Opinions." The policy outlined plans to install approximately 10 GW of new photovoltaic capacity annually from 2013 to 2015, aiming to reach a total installed capacity of over 35 GW by 2015 — a 70% increase compared to the targets set in the National Energy Administration's 2012 "Twelfth Five-Year Plan for Solar Power Development."
Encouraged by this supportive policy, the U.S. solar panel market saw a surge on July 16, signaling a potential rebound for the PV sector. However, challenges remain. By 2015, China is still facing a funding gap of over 50 billion yuan for renewable energy subsidies. Amid the growing interest in solar power, distributed generation projects have become particularly prominent, with local governments launching competitive subsidy programs.
The policy environment has been favorable, with early signals of support coming from the "National Six" regulations introduced just a month prior. At a mid-June State Council meeting, Premier Li Keqiang emphasized the importance of expanding the use of distributed photovoltaic power. Grid companies were urged to ensure that supporting infrastructure and photovoltaic projects are built and operational simultaneously, with priority given to grid-connected photovoltaic electricity.
Industry leaders welcomed these developments, noting that the 20-year period for on-grid tariffs and subsidies provides long-term confidence for investors. A company executive from Jiangxi, who specializes in photovoltaic modules and power stations, mentioned that due to EU trade restrictions, their 2012 projects in Turkey were delayed, forcing them to focus more on the domestic market.
With the promise of subsidies, solar power plant operators can now consider asset securitization, allowing for more flexible investment strategies. Unlike previous subsidy models, the new policy emphasizes "subsidizing according to degree," with further details expected in August.
At the Shanghai PV Exhibition, Wang Zhongying from the National Development and Reform Commission's Energy Research Institute discussed the ongoing discussions about distributed electricity pricing. Proposed subsidies include 0.2 yuan/kWh for industrial and commercial users, 0.4 yuan/kWh for large industries, and 0.6 yuan/kWh for households, hospitals, schools, and rural residents.
Despite the positive outlook, the final implementation of distributed energy solutions still hinges on pricing decisions. Some reports suggest that the subsidy rate may rise from 0.35 to 0.45 yuan/kWh.
Additionally, new photovoltaic manufacturing projects must meet efficiency standards: single-crystal silicon cells at least 20%, and polycrystalline cells at least 18%. Current industry averages fall short, potentially leading to some companies being phased out.
Distributed energy has emerged as a top priority in recent policies. The "Opinions" state that all electricity generated from distributed photovoltaic systems will be included in national statistics, influencing local government performance evaluations.
The 12th Five-Year Plan for Energy Development marked a shift toward distributed energy, aiming to build around 1,000 natural gas-based distributed projects by 2015. This reflects its strategic importance in China's energy future.
Experts argue that distributed energy offers multiple benefits, including energy efficiency, environmental protection, and reliability. As China continues its rapid industrialization and urbanization, integrating distributed energy into regional planning could help achieve energy-saving and emission-reduction goals.
Many companies, both domestic and international, are already investing in distributed energy. However, challenges such as geographic constraints, technical barriers, and grid integration issues remain.
Recently, the Qingdao Economic and Technological Development Zone hosted an international conference on the Pan-Energy Network Technology, showcasing how integrated energy systems can address the instability of traditional distributed sources.
Looking ahead, the establishment of a robust subsidy system remains critical. Despite existing funding gaps, local governments are already engaging in competitive subsidy initiatives, such as Tongxiang City’s “one award double supplement†program and Jiaxing's high-rate subsidies.
While challenges persist, the growing interest in distributed energy and supportive policy frameworks signal a promising future for China’s solar industry.
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