Forcing costs down excess worry solar subsidies to be slashed

Polaris solar PV net news: with the PV subsidy policy’s expiration, a new round of subsidies the upcoming.

Recently, the national development and Reform Commission issued the new benchmark concerning the adjustment of the new energy price notification (draft) (hereinafter referred to as the notice), for three types of setting new energy price change. PV focus subsidies be cut. Subsidy standards for distributed generation projects not only slashed nearly 40% ground station resource price also declines up to 30%.

“Though not the purpose, but based on past experience, the end result will not be much change. “Only a consulting analyst Li Ming told reporters, currently PV benchmark price, the Executive is due out in July 2013 standard. Taking into account the market scale nearly two years brings lower costs, cut power subsidy price, is an inevitable trend.

Nan Zhao hongfei, Deputy General Manager of technology, it seems, except for cost reasons, industry excess worry, is likewise the subsidy “pain killer” reasons. He told reporters that the photovoltaic power generation project is still unabated, in my province, for example, the province total on-grid PV 408,000 kW, output of 310 million kilowatt hours, for 7 times 2014, far exceeding the expected, but abandoned optical phenomena are all the more serious, some eat subsidized intentions clear, and subsidies to the financial pressure is also growing.

“The project has a certain amount of time, not wait until excess regulation. “He says, choose this time greatly reduced power subsidy price involved, to some extent, control of PV power projects launched speed PV installed capacity of the country in the first half of this year has surpassed that of the whole year target, containing solar overheating, does not allow enterprises to aggressive, is also an important reason for slashing the subsidies.

Dispute a huge industry generally “get angry”

Although there are some buffer time to execute, but photovoltaic industry has been on pins and needles.

“Short term, PV enterprises want to rely on their own ability to make a profit, too difficult. “A large PV enterprises in the province said, although in recent years the cost of photovoltaic power generation has been reduced, but is still hovering around 0.8 Yuan/kWh, according to the third category of resources in Henan province 1 Yuan/kWh price, slightly profitable enterprises. Once the new deal implementation of 0.75 Yuan/kWh electricity prices, corporate earnings will drastically cut back. “Distributed power generation subsidy more than 4 cents per kilowatt hour, cut nearly half of the cost of the enterprise, cut subsidies to 3 cents, it would not be profitable. ”

This development is expected “bearish” industry buzz. After the national development and Reform Commission issued the notice, China new energy Chamber of Commerce (hereinafter referred to as new energy Chamber of Commerce), released on “new benchmark PV price adjustment” call for comments issued an emergency notice. The notice said price adjustment programs will have a significant impact on the future development of PV industry in China, decided to urgently seek members views, and later reported to the national development and Reform Commission and the National Energy Board.

“In May this year and the NDRC has indicated to fall back just mechanisms against PV price subsidies, but ‘ back ‘ so many truly unexpected. “Mr Zhao said, this study of the enterprise, the new deal was intended to consider developing a differentiated PV subsidies through price policy, gather time and other considerations, step by step according to the level of industrial technology to reduce solar power subsidies until the removal of subsidies.

But subsidies sharply, companies off guard, it is difficult to rely on slow technology to enhance profitability. He said, this small part of photovoltaic plant level, or it can be overwritten with the new standard cost, but most areas and do not receive. “Not rule out that some enterprises in order to reap the benefits, and adopt a bad charge, attenuation photovoltaic efficiency, subsidies should also be more steadily declined. ”

In this regard, Li Ming believes that policy ground, is bound for the photovoltaic business, “labor pains,” but in the long run, industry profit margins compressed, will accelerate the differentiation of corporate profitability, forcing enterprises to carry out technological innovations, is conducive to the long-term development of the industry as a whole, to achieve the goals of 2020 PV and cheap Internet access.

Original title: photovoltaic subsidy to be cut

Posted in Solar Charger.