China Solar Subsidies -- “Golden Sun” subsidies announced
We all know in 2008 the companies in the solar energy industry suffer the ache from the global financial crisis. Some companies closed a few production line of solar power. This is even worse in China. Nowadays China has played an important role in the field of solar energy. But the government of China has tried to stimulate the solar energy industry.
Chinese government started the “Golden Sun” subsidies on Jul 21, 2009 to provide subsidies to solar-power projects, to boost the solar industry as a new growth point for the country’s economy.
The Ministry of Finance of China said on its website that it will offer 50 percent of investments for solar power projects of more than 500 megawatts (mw), and the transmission and distribution network over the next 2 - 3 years.
The solar power projects in the remote regions of China that are not connected to the electricity grid will receive subsidies of 70 percent of the investment.
The total generating capacity of such pilot projects in each province should not exceed 20 megawatts. In addition, electricity grid operators will also be required to buy excess electricity at prices on a par with power from coal-fired power plants.
The China Solar Subsidies (“Golden Sun” subsidies) emphasize grid-connectivity of projects. I think this happens just because of the sore lessons from its wind industry.
In fact 500 MW of installed capacity is not huge, especially when we consider that China will probably revise its 2020 solar target to 10,000 MW of installed capacity. But given the nascent nature of the solar domestic market in China, this 500 MW program from “Golden Sun” subsidies, which comes just a few months after the landmark solar roofs program, send a strong signal that China is serious about developing its domestic solar market, and will undoubtedly stimulate more activity in domestic deployment by enterprises outside of the subsidy program.
