Study Report-China Solar PV Power Differential FIT

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published Aug 01, 2013 12:00 AM, last modified Apr 11, 2016 11:18 PM

The Chinese PV industry is at an important transition period from industrial infancy to healthy and orderly development, which is in urgent need to establish and improve policies and supporting measures, in particular the policy of PV power generation tariff. This can be attributed to the following: a) price is the most effective policy instrument to promote industrial marketization and large-scale development; and b) in comparison with other policy instruments such as financial subsidies, preferential tax and financial support, the price policy is the most transparent means of management, and is more in line with the requirements of resource allocation of the market. Moreover, for investors, the price policy can intuitively reflect industrial policy orientation of a country, and can also project the return on investment of an industry in a direct and definite manner, thus making investment decisions.

Thus, the soundness of pricing policy is a reflection of industrial maturity. Scientific and reasonable PV feed-in tariff is of greatly strategic significance to healthy development of China's PV industry. Currently, PV tariff policy presents quite a positive signal, and has solved a lot of historical issues with investment incomes of many "approved" projects, which helps to make preliminary design for PV tariff of new projects, and more importantly, paves the way for the future introduction of a more comprehensive tariff. Based on sorting out various policy suggestions on PV power generation at home and abroad, the study proposed recommendations on the policy of PV power generation feed-in tariff in favor of reference for the authorities concerned.

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