Photovoltaic Industry “new worry”

Polaris solar PV net news: in July this year, will face China or United States first solar “double reverse” review zhongcai. Identify high and low tax rates will determine PV product sales in the United States, China and even the global PV market.

China also holds a “brand”. Last August, the Ministry of Commerce and the General Administration of customs jointly issued “Bulletin 58th” plugging in processing trade to avoid “double reverse” behavior.

Trade between China and America at the same time, the domestic photovoltaic industry battles because of the intertwined interests: or would benefit from blocking upstream firms called for the continuation of the policy of blocking, downstream that depend on processing trade enterprises are urged to let go.

As a representative of China’s new energy, photovoltaic industry despite the momentum of rapid development in recent years, overseas are subject to “double reverse” dispute, and also lose subsidies cane, financing, Internet hard to solve old problems are still rare.

First, “Bulletin 58th” abolition of suspense

The end of April, the Ministry of Commerce in a conference room on the 3rd floor, in front of the host Ministry of Commerce’s foreign trade Secretary, Zhang JI, PV upstream and downstream firms on behalf of tit-for-tat, not “charged”.

Upstream firms requires, continue to the 2014 “Bulletin 58th” plugging polysilicon processing trade imports, protect the legitimate rights and interests of China’s polysilicon industry.

Enterprise was again let go of polysilicon processing trade imports, citing excessive protection will hinder the progress of the domestic industry and international competition.

On August 14, 2014, China’s Ministry of Commerce and the General Administration of customs jointly issued a moratorium on the import business applications of solar-grade polysilicon processing trade bulletin, the “Bulletin 58th” closed the imports entertained the gate since September 1, 2014. This bulletin is intended to plug in processing trade to avoid “double reverse” behavior.

Domestic PV manufacturers divided on this great benefit from the blocking of upstream and downstream that depend on processing trade gezhiyiduan.

More complex is involved in Sino-US trade.

Bulletin 58th continues or not is directly related to United States Silicon exports to China. An important point in time is coming. 2011 United States exports to China Solar PV products launched the first round of “double reverse” investigation, in July of this year is expected to be made in the case review zhongcai. In this case, bulletin 58th fate became a mystery.

Two years, troughs, warming of PV industry in China from the end of 2013. The same period, the United States PV market growing rapidly, but due to an United States two “double reverse” sanctions, China PV products in the United States market was affected. If the Review Conference will “double” rate, undoubtedly bullish China PV industry.

Peng Hongbing, Deputy Director of the information Division at the Ministry told reporters that not long ago, China had a “China-us strategic and economic dialogue” early contacts. On the trade issue, China expressed the hope that the two sides are using trade remedy measures, with the implication that suggested both take a step back.

“58th polysilicon processing trade notice was suspended, the Government can cancel the notice, let go again. “The Ministry of Commerce, Director of the Institute of foreign trade Li told reporters.

However, according to press reports, the United States in the early bulletin contact sought abolition of the 58th, but did not mention the possibility of concessions or Exchange. If the United States does not take a step back, China is likely to “maintain the consistency of our policies.”

“Double reverse” vulnerability

In 2011, the United States first PV to China launched “double reverse”. In 2012, followed by the European Union, and 21 billion euros of photovoltaic products and raw materials trade cases against China, becoming the biggest anti-dumping cases.

As a counter measure, on January 20, 2014 and on May 1, China respectively from the United States, and Korea and the EU imported solar grade polysilicon trade remedy measures.

Bloomberg new energy finance industry analyst Wang Xiaoting, China’s “double reverse” limited effect.

Customs data show in 2014, total imports reached a record 102,000 tons of polycrystalline silicon, rose 27%. In 2015, imports continue to grow, and 1 ~ April cumulative import 38,000 tons, an increase of 29.4%.

Meanwhile, China polysilicon spot prices from May 2014 price 165,000 yuan/ton, has shown a decrease in unilateral posture by May 2015 fell to 116,000 yuan/ton, fell by nearly 30%.

Silicon industry branch of China non-ferrous metals Association analyst Liu explained to reporters, China’s “double reverse” after the polysilicon abroad by processing trade imports as a way to circumvent sanctions, punitive tariffs have not been implemented. The other hand, the 58th bulletin from release to perform a half month break, stimulates the polysilicon spot imports, prices fell sharply.

Since reform and opening up, China has been bonded imports and exports imposed on processing trade cancellation policies, shall be exempt from customs duties and VAT on imported raw materials. China accounted for 77% of the global market share, any polysilicon manufacturers won’t give up the “battleground” and will not give up any “loopholes”.

Li Jian said, avoiding trade remedy measures for processing trade “loophole” is legitimate in principle.

In order to fill gaps in August 2014, the Ministry of Commerce and the General Administration of customs jointly issued bulletin 58th, polysilicon processing trade imports were suspended. But in a public notice issued to date half of the break period, around the surprise release totaled more than 100,000 tons of polycrystalline silicon processing trade orders.

Li Jian, 58th, notice was left empty, should be the result of the game from all interests.

In 2014, the polysilicon processing trade in the United States, and Korea, and Germany respectively for imports of polycrystalline silicon 87.6%, 69.1% and 59.1%. Polysilicon through processing trade imports to China set a record high, an increase of 35.8%.

Liu said that during the break period, imported polysilicon spot prices lower than the domestic products of the same grade 0.5-10,000 yuan/ton, the domestic polysilicon companies have to cut prices to, resulting in decreased competitiveness, face a crisis of survival.

Domestic polysilicon production the third Sino-Si no acrylic described to reporters, Deputy General Manager, Luoyang Zhonggui cash cost of 120,000 yuan/ton, compared with the current market price is 116,000 yuan/ton, the cash flow has been negative. Meanwhile, normal inventory of polysilicon in a week or so, Luoyang Zhonggui currently inventory has been close to two months, enterprises can support a maximum a year or face the risk of shutting down.

According to several insiders, bulletin 58th break contracts signed during the period up to the implementation period of only one year, will be fully implemented before the end of August 2015, domestic PV upstream and downstream enterprises to related government departments began a new round of “lobbying”.

Downstream on contradiction

On April 30, the Xian longi silicon materials company limited (hereinafter referred to as longi shares) to the Ministry of Commerce reported on sustainable development urge protection of polysilicon processing trade, promote transformation and upgrading of our PV leads report, objection to restrict polysilicon processing trade imports.

The reason is, the domestic polysilicon production cannot meet the demand of domestic enterprises and quality of domestic polysilicon and the quality of large international companies there are gaps, especially at present, used in the production of n-type Silicon Silicon material quality is not stable and must be imported. More important is that the domestic polysilicon companies have higher gross margins, imports will further bring domestic companies raise prices, even for 1 ~ 2 monopoly enterprises, and domestic enterprises are either mired in losses, or choose to accelerate overseas plant. The downstream industry output value of 200 billion yuan, annual exports of us $ 15 billion, and to accommodate a large number of employment, if the withdrawal will affect the great.

Longi shares is currently the world’s largest silicon wafer manufacturer, capacity is 3 GW, as Silicon to wafer costs about 40% per share, so fluctuations in raw materials prices has a great effect on their profits.

On May 25, the longi shares above and the formation of the second draft of the report, sign manufacturers new world ranking of PV modules manufacturer Trina, Yingli, as well as at the middle reaches of the chain of Tianjin zhonghuan semiconductor joint-stock company and huantai silicon technology company.

Upstream of Shaanxi non-ferrous metal group and Shanxi tianhong UCH silicon top. Insiders, Shaanxi days hongruike Shaanxi non-ferrous metal group with United States RECSilicon polysilicon manufacturers to establish joint venture company.

Longi equity strategy Director Xia Aimin said May 25 report, combined with PV on the middle and lower reaches of enterprises, reflecting the general interests of the photovoltaic industry.

From upstream of the photovoltaic polysilicon manufacturers one or two lines, such as the GCL, daqo new energy, TBEA, Luoyang SI, advocated continued to restrict polysilicon processing trade imports.

GCL-poly Lv Jinbiao, Deputy Chief, told reporters, downstream worried about the domestic polysilicon production is not necessary. Close the processing trade affects only “double back” higher tax rates of the United States imported polysilicon, because Korea tax rates low, Germany price promise, you can still continue to import. China in 2014 from United States imports 20,000 tonnes, in part by growth in domestic production to make up for the gap.

China Nonferrous metals Association statistics show 2014 domestic polysilicon 135,000 tons in China, imports of 102,000 tons in 2015, GCL, TBEA and other domestic polysilicon enterprises of new capacity will have been put into operation, expected to total capacity of 210,000 tonnes this year, produces more than 160,000 tons. That is, 25,000 tons can be covered in 2014 2015 yield since the United States imports of 20,000 tons.

LV trophy also said current GCL and technical capacity of TBEA supplies Silicon n-type single crystal silicon chips with the highest quality requirements. This part of the Silicon material demand of 80 million tons for the year, 4% of the total amount of domestic polysilicon, imports production total imports of 10%, and not affect.

Enterprise gross profit rate is higher in the upper reaches of the longi said shares, Bloomberg new energy analyst Wang Xiaoting considered, taking into account the upstream high equipment costs, its profitability is not optimistic.

According to the Bloomberg new energy finance, this year’s top four domestic polysilicon production enterprise includes daily cash costs of amortization, GCL-poly for 15 USD/kg, complete $ 12.5/kg, TBEA and Luoyang SI in 18 us $/kg, other producers of polysilicon costs at around 18 ~ 20 us $/kg. Early June 5 consecutive days of domestic polysilicon average market price of $ 16.11/kg. Visible at the current prices, most of the polysilicon business will lose.

Profitability is upstream pushing continued to block a major reason, and raw materials companies hope the price is as low as possible. However, according to Wang Xiaoting analysis, taking into account the current polysilicon prices are lower than the cost of most foreign manufacturers, even bulletin 58th immediately canceled, United States polysilicon through processing trade exports to China, the prices will pull, because no companies willing to sell at a loss. However, global supply determines the level of prices is limited.

2014 global total of 304,000 tons, for the production of polysilicon products 55 GW, real consumption is 43 gigawatts, formed 12 GW of inventory. 2015 expects world output of 350,000 tons of polysilicon products for the production of 65 GW, is expected to total annual demand of between 52-58 GW. Polysilicon oversupply situation is obvious.

Many industry insiders say, polysilicon has formed a global competition, price monopoly will not occur in China, not long because imports also harm the interests of domestic enterprises. Policy for price fluctuations have a certain influence, but the prices decided by market supply and demand.

Pick a card

“Whatever bulletin 58th continue or cancel, upstream and downstream businesses suffer no existential threat. “Wang Xiaoting said,” but we still want to compete, the policy bias is better than no bias. ”

Lv Jinbiao said the PV Business Bulletin 58th big prices and raw materials, bulletin 58th to be executed first notify the foreign manufacturers, lower import prices as much as possible, and then told the domestic polysilicon companies, in their 58th article request cancellation, processing trade will continue, forcing domestic polysilicon companies with falling prices.

Companies try to push down the price of imports and raw materials there is a sorrow. TBEA Xinjiang Gan Xinye described to reporters, Deputy General Manager of the silicon industry, long before 2009, a large number of enterprises entered into long term contracts with foreign firms, at a high price to secure a 8 ~ 10 years of imports of silicon, currently prices you can balance your overall cost of polysilicon.

2008 to 2012, the polysilicon price changed from $ 300/kg to $ 20/kg Cliff fall, but many Chinese companies in early to sign long term. According to public reports, Suntech of bankruptcy, debt was in large part due to the long form. Trina in early 2011 or earlier signed a long term contract for $ 14.6 billion in the period, the Executive term for 2012 to 2020. Europe’s largest polysilicon manufacturers Germany WACKER also said in its announcement, 2014 lifted first quarter received a long contract indemnity payments, the total amount of € 114 million.

It is understood that the present Germany WACKER polysilicon exports to China with an average price of us $ 20 per kg, while the market price is about $ 16/kg. There are some Chinese enterprises in carrying out and Germany WACKER long.

Media Director Trina see ye Chao, told reporters: “I don’t know whether the enterprise and foreign enterprise’s long, but 58th announcements involving the core problem is not long, but the enterprise bargaining. ”

He said bulletin if you cancel the 58th, Trina can own a small number of wafer capacity, and by processing trade imports from abroad to protect their bargaining power. If you do not cancel, polysilicon only imports through general trade, or at least to pay a tariff of 4%, and would weaken the bargaining power of the domestic upstream.

Subject to policy implications, in addition to the domestic upstream and downstream firms, naturally there are foreign manufacturers.

According to insiders, as early as 2012, China announced the United States, Europe polysilicon products are “double reverse” when filing, United States RECSiliconREC polysilicon manufacturers began to engage with China, seeking to build plants in China. In October 2012, REC will visit Shaanxi nonferrous metals group. Until February 2014, the REC officially signed an agreement with Shaanxi nonferrous metal holding group, started 20,000 ~ 30,000 metric tons of polysilicon project joint venture, cooperation in building advanced fluidized bed process polysilicon production lines in the world.

Peng Hongbing, Deputy Director of the information Division at the Ministry, REC to build factories in China, has always been followed “double reverse” pace. Whether or not the project will be the most advanced manufacturing technology to China there are uncertainties, as the foreign technology and equipment exports to China, which has been retained.

Vice Chairman of China Nonferrous metals Association Zhao Jiasheng told reporters, PV upstream and downstream enterprises should not blame each other, finger-pointing and down, to form a community of interests, with a complete industrial chain to participate in international competition.

No matter how the enterprise struggle policy ownership or control in the hands of the Government–and how trade policy depends on the opponent Court.

Director of the Legal Department of the China Chamber of Commerce told reporters Chen Huiqing, in July 2015, the United States on China’s first photovoltaic product review final round double reverse. At this point, the United States of polysilicon processing trade orders are also executed, 58th, which notice will really start to work, to export to China will have to pay the high tariffs in the future. It took a card equal to the two sides, and have a chance to sit down at the negotiating.

Bulletin 58th card how to play? Wang Xiaoting judgment: “China’s expectations of the policy, the General was further, China further; others take a step back, step back in China. ”

Second, comprehensive OEM too early

Solar downturn a few years ago, Taiwan manufacturing giant Foxconn announced high profile into the photovoltaic industry, Shanxi, Jiangsu, Guangxi and other places and actions.

In April 2015, as leading photovoltaic Yingli Green energy trying to “crowdsourcing” model, which took ingot wafer links a 100 megawatt capacity line, for Foundry operations.

Similar cases are not uncommon in the world. United States Sunpower Corporation have been using large electronic services company Jabil and Flextronices foundry, Japan sharp have been shutting down its plant in Europe and the Americas, will produce delegates to County enterprise.

Chief Financial Officer of Yingli Wang Yi told reporters more than, PV module has become a traditional industrial products, enterprises require batteries and casting core technology, the rest of the manufacturing sector can OEM, PV manufacturing to asset-light like a iPhone mode of operation.

But it seems to more people in the industry, Yingli select “crowdsourcing” model has its high debt rate cause, other options are based on avoiding “double reverse” considerations. China PV industry as a whole, lack of unique core technologies that premise, full OEM too early.

To avoid “double reverse”

Chinese Photovoltaic Industry Association, according to a new report, 2014 international PV market price of about $ 0.62/w. 2008 ~ 2009, the market is prone to as much as $ 4/w.

PV manufacturing technology upgrades and increased competition lead to lower prices, gross margin line decreased, average gross profit margin has fallen from around 50% in 2008 to present 10% ~ 15%.

Wang has more than think, declining profits, will inevitably bring about changes in manufacturing. In 2014, in the fierce market competition, some large PV manufacturers in order to reduce costs and retain technologically advanced production lines, shut down higher cost production line, the extra OEM orders entrusted to third parties.

In addition to looking for domestic workers, and some manufacturers have started “go” to find factories abroad. Yuhui solar PV manufacturing enterprises in China have been in 7 countries with 11 manufacturing facilities to establish a long-term OEM relationships, Foundry capacity 1.1 GW, accounting for about half of the company’s total capacity.

Yuhui solar overseas OEM models starting in 2012. Main aim is to address the trade war against China’s photovoltaic products, and in India, and Poland, and South Africa, and Malaysia established a foundry, operations process is a Chinese design, procurement of raw materials from local suppliers, offshore production, local sales.

Not unique. On May 6 this year, Trina announced that it would invest $ 160 million in Thailand building capacity of 700 megawatts of photovoltaic cells and 500 MW of PV modules project in late 2015 or early 2016 is expected to formally put into production.

On May 26, another Chinese PV brands jinko announced in Malaysia to invest $ 100 million to build the plant already in operation, respectively, with 500 MW battery and 450 MW capacity. This is the apt in South Africa and Portugal’s third overseas plant outside the component factory, is the largest one.

Jinko global brand spokesperson told reporters Qian Jing, the factory located in Malaysia, Penang, local governments to attach great importance to, and mainland China more attractive tax benefits, as well as local power supply and infrastructure is also perfect.

Although overseas manufacturing is a common, but Qian Jing said current jinko “go out” in order to circumvent the purpose of Europe and “double back”, we also value our photovoltaic potential in emerging markets in Southeast Asia, but large-scale overseas contract also is not realistic.

In her view, Malaysia though for some countries, good investment environment, but also in the supply chain can not be compared with China, China’s status as a global PV manufacturing base still can’t shake.

Xianshou LI Yuhui solar Chief Executive, has said publicly that its overseas manufacturing costs than in domestic higher cents per watt production cost. Only when China PV module encounter trade barriers overseas OEM products have a competitive advantage.

Technical bottlenecks

Foundry patterns on the premise that mastering core technologies. But it seems to Peng Hongbing, Deputy Director of the information Division at the Ministry, Chinese PV industry currently has a disruptive technology.

He told reporters, before 2012, PV cell conversion efficiency can be increased by 0.5% every year, then, the entire industry matures, the slight gap in companies in the technology, but they are in mainstream technical tinkering, no disruptive technologies. Determines the current PV companies the cost gap is small, improve their profitability is mainly rely on economies of scale.

Cost of PV modules composed mainly of Silicon cost and non-Silicon cost. At present, the Silicon of price has dropped to $ 0.09/w, almost fall. Non-Silicon cost will depend on auxiliary, supply chain management and procurement, bargaining power, and so on.

Terms of Yingli, Trina and jingke disclosure 2014 data can be seen, non-Silicon costs are around $ 0.36/Watt, the same. Major PV enterprises in order to share costs, continuous expansion. Rely on economies of scale, do not easily give up their capacity.

In 2014, the components of China 35.6 gigawatts, up 30%, 68.5% per cent of global production. Among them, several big photovoltaic company Trina solar, solar, Crystal, shipments increased and 41.8%, and 52.3%.

One industry source said Yingli chose “crowdsourcing” model, is because of Yingli’s current debt ratio exceeds 95%, Yingli occupy a significant portion of the whole industry chain development mode of cash flow, “package” is the last resort for them.

The above analysis, Yingli solar wafer capacity 3 GW, lower costs in large-scale production mode, “crowdsourcing” out of 100 MW capacity, than Yingli itself more efficient.

Jinko global brand spokesperson said Qian Jing, Apple’s patent-pending technology for thousands of species, only really into volume production, this ensures that Apple has a strong technical reserves and continuous innovation. Only such enterprises could achieve full contract, asset-light operation. China PV full OEM age is still very far away.

Third, the subsidy is not lost “crutches”?

Due to the photovoltaic power generation was more expensive than traditional sources of energy, therefore, in its initial stage of development of all countries in the world to give appropriate subsidies. China is no exception, for terrestrial photovoltaic power plants and distributed PV benchmark prices and direct subsidies respectively.

Installed capacity has been rising but allows subsidy funds to make ends meet. When like Germany and other countries to eliminate subsidies, become a question.

2014 national energy work Conference has released information, explore the formation of realistic distributed PV business models, gradually reducing power generation costs, striving to 2020 PV user-side parity.

PV Professional Committee of China renewable energy society, Deputy Director, national development and Reform Commission’s Energy Research Institute researcher Wang Sicheng told reporters his judgment: by 2025 to 2030, PV is expected to achieve parity in generation side, when subsidies are expected to reduce or even cancel.

Heavy subsidies

PV subsidy policy according to 2013 on the play, national development and Reform Commission issued notification of price leverage to promote the healthy development of the photovoltaic industry.

For PV power plant, according to local solar resources and construction costs, the country is divided into three types of resources located 0.9 Yuan per kilowatt hour, 0.95 Yuan, 1 electricity price standards. Of distributed solar power projects, implemented in accordance with the electricity subsidy policies, subsidies for 0.42 Yuan per kilowatt hour.

“PV subsidies should be in accordance with the needs of the industry and investors to identify, much less, is not appropriate. “National Energy Board new energy and renewable energy Liang Zhipeng, Deputy Director, told reporters.

PV subsidies are the main sources of renewable energy development fund, the funds, including the renewable energy development project funds to power users and additional renewable electricity price levy income.

But in recent years, with the rapid development of renewable energy such as solar and renewable energy development fund has enough to pay the subsidy required. Subsidy funding gap in arrears may have an adverse impact on the healthy development of the renewable energy industry as a whole reality, national standards for renewable electricity price surcharge from 2006 0.1 cents per kWh has been progressively increased from 2013, 1.5 cents, up to 15 times in 7 years. Even so, the funds raised are still struggling to meet your needs.

A Insider who declined to be named, the current, solar power subsidies in arrears of over 5 billion yuan this year, still faces a funding gap.

National development and Reform Commission said that 10.7 billion yuan of subsidy arrears before 2012, has passed the financial allocations and reissue the small-fund balances in recent years, but the current total electricity consumption growth is slowing, levy increases less than demand growth, renewable energy electricity price surcharge to standard or will be raised again. This will no doubt once again increase the cost of electricity consumption of the whole society.

Cutting problem

2014 PV power generation accounted for 0.46% of the total national and development space is enormous.

But the current photovoltaic power generation costs have fallen to about 0.7 yuan per kilowatt hour, is still the most about desulfurization of 0.38 Yuan per kilowatt hour nearly twice times the new benchmark coal price. Obviously, if there is no subsidy, PV is not valuable.

State encourages the development of PV power plant, one reason is that European and American “double reverse” or export, need to address upstream products to dissolve, and promote the healthy development of the whole industrial chain. In other words, subsidize power generation side is also supporting the photovoltaic manufacturing companies.

Under the existing subsidy policies, in 2014, the new grid-connected photovoltaic capacity 10.6 million-kilowatt, using only the PV module production in China was one-third distributed PV in the context of national 0.42 Yuan per kilowatt subsidy, only complete the planned 26%, PV manufacturing provinces to take from that some local government-funded subsidies.

Researcher at the Energy Research Institute, national development and Reform Commission, Shi 璟li, told reporters in the short term to achieve PV parity, rely on PV’s own cost reduction alone is difficult. If external thermal and power by accounting cost, raising the price of electricity, solar parity of process will be much quicker.

However, the power price has not increased, but in August 2014 cut. One industry source said that this fall in coal prices based on the theory of price adjustment and deviated from the actual cost of thermal power, rather than encourage PV and other renewable energy parity, but also led to increased spending on renewable energy subsidies 10%, nearly 5 billion yuan.

“Thermal and power external environmental costs are not calculated into the price case, what makes you want to cut solar subsidies? “National strategy for climate change research and international cooperation, said Li junfeng, Director of the Center.

Children eventually grow up to be

Drinking subsidies “milk”, PV is not improving. Shi Dinghuan, Director of Counselor of the State Council, the China renewable energy society, told reporters that in recent years, enterprises ‘ technology innovation and industrial development as the main body, key technology research and development, production levels have made great progress, further localization of production equipment, photovoltaic power generation costs decline, provided the basis for cheap Internet access.

Wang Sicheng also believed that by altering the ratio of inverter power, configure a smart metering system on the station, speed up the high conversion efficiency and long life of development and industrialization of solar cells, reduce product cost, improve total installed generating capacity, you can accelerate the process of parity.

In addition, through technological innovation can reduce energy consumption of production and material loss. For example, yield improved wafer cutting, thick-soled reduced, improving the yield of cells and modules, are able to drive costs down.

2013 national development and Reform Commission in the development of photovoltaic power stations a benchmark price and subsidy policy, PV system cost is 10/w, is now reduced to about 8 Yuan/w.

In the view of some in the industry, cuts in subsidies for PV industry is not a bad thing, photovoltaic market increased, forcing PV companies to further reduce costs, improve efficiency, orderly and healthy development in the competition.

Vice President of the China renewable energy society Meng Xiangan told reporters, subsidies in the early development of PV industry is a must, the eventual elimination of subsidies is inevitable. State subsidies for PV is like parents for child support before the age of 18, children must grow up eventually living independently.

Four, can’t afford to help distributed PV?

Distributed PV push by Government forces, but has not been sought after in the market.

National Energy Board data show that distributed PV 2014 target for new installed capacity 8 million-kilowatt, actual completion of 2.05 million-kilowatt, only completed the target one-fourth.

Large scale photovoltaic power plant compared with the ground, wide range of distributed PV applications, in both urban and rural construction, industrial, agricultural, transportation, public facilities and other areas has broad application prospects, while the installed capacity of small, easy to dissolve or grid.

Therefore, in 2014, the National Energy Board adjusted the distributed PV development goals power plant above ground target in 2015, National Energy Board to cancel restrictions on the spontaneous use of distributed PV project indicators.

But because of the high investment costs, lower income, distributed PV ground is ineffective.

National Energy Board new energy and renewable energy Liang Zhipeng, Deputy Director, told reporters, distributed PV market in China reached 300 GW (300 million-kilowatt), now we must focus on good policy implementation, streamline processes, installed grid-connected and subsidies issued to achieve without any obstacles.

The next step is based on local absorptive, establish a city-level distributed power market, establishing of distributed PV enterprises selling rights, optimal use, promoting the development of distributed PV.

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