Liu hanyuan members of the two sessions proposal heavy impact of direct subsidies

Polaris solar PV net news: (reporter Chen Yanqing) in 2013, the State Council issued the opinions on promoting the healthy development of the photovoltaic industry since the benefits from national policy support and favorable environment for development, China’s PV industry expanded rapidly. Nearly 4 years, PV-an average annual growth rate of more than 60%. According to Department of energy statistics, by the end of 2016, photovoltaic power generation capacity in China to 34.54 million-kilowatt, a total installed capacity of 77.42 million-kilowatt, new and cumulative installed capacity for the world.

However, in parallel with the rapid development of the photovoltaic industry, also showed heavy subsidies, tax arrears and other ills. For 8 consecutive years of attention to the healthy development of the photovoltaic industry Liu hanyuan, Chairman of tongwei Group on March 2, the “two sessions” press conference focuses on the photovoltaic subsidy, photovoltaic tax proposals.

Liu hanyuan in statement in the said, “as relates China current and the future economic development transformation and energy security and the fog haze problem solution way of PV industry of subsidies problem, after years constantly cumulative, has actually became has a and arrears agricultural migrant workers wage also serious of reality problem, as long-term delay down and have not to effective solution, not only serious impact China PV industry of health, and stable and continued development, also will serious damage China Government of integrity image and paid credit problem. ”

In fact, the photovoltaic subsidy arrears period is one to two years, longer then two or three years, the industry has been badly hit, some enterprise capital chain rupture, many enterprise capital chain rupture of edges. On the surface, subsidies granted object seemingly PV links, but for the whole photovoltaic industrial chain “Mana”. If PV power station took not to subsidies, on must will arrears upstream component manufacturers payment, component manufacturers and will further arrears more upstream of raw materials suppliers of payments, to caused chain arrears, formed large of bad, and bad and “triangle”, not only led to whole PV industry in funds tight of status, also will serious impact investors on PV industry input of confidence and determination, even may led to PV industry faced more big, and disaster sex of Cliff type fell, effect China economic general run.

It can be said that arrears of subsidies under the national policy, the PV industry in China has been paid, the Government paid credit and honesty construction have caused significant damage.

In this regard, Liu hanyuan members recommendation: strengthen government integrity, improve basic pay rules to simplify the subsidy funds collection and disbursement procedures.

Apart from the installed capacity topped out, rapid decline in the cost of the PV industry chain, forming a characteristic “PV speed.” According to the Photovoltaic Industry Association statistics show that 8 years, the component cost/W/W dropped to 35 cents from 60 cents; inverter from fell to 0.3/0.7/w w system “bare cost” (not including land and send) fell from 8.5/w about 6.2/w. Components, systems, inverters, electricity prices 8 years respectively, 91.5%, 90%, and 77.5%.

Although the PV “hard costs” is decreasing, but PV such as corporation tax, land tax, “soft cost” creating pressure for PV companies.

It is understood that the current PV industry in China from the upper reaches of the Silicon raw materials, into middle silicon wafers, cells, modules, inverters and other components, production of primary attachment, to downstream photovoltaic, full tax. The main taxes involved include: corporate income tax 25% and the additional, value-added tax 17%, in addition to the sea area use fees, land-use tax, stamp duty, tax and other tax types, such as factors to consider social security, taxes and fees will be even more alarming.

In terms of financing, photovoltaic industry due to the one-time amount, high investment costs and long recovery period, making PV enterprises difficulty in financing not only difficult to obtain credit and limit space is too small.

Liu hanyuan, the “PV project data measuring on average, pays sales tax average is 1.8 times of operation and maintenance costs, sales tax average net profits of 30%. After receiving the loan, PV enterprises should not only pay higher bank interest rates, and the cost of capital for 6% value added tax is not deductible, as the cost of a large proportion of interest 17% tax levy in full and further increase the tax burden of enterprises. In addition, the new energy subsidy funding gap of up to 60 billion, preliminary project subsidies accounted for more than 50% of total electricity revenues, and further delay, adding to the operating pressure of the enterprise. ”

Liu hanyuan said that with China’s rapid economic development, the haze problem has become more serious in recent years, has had a significant impact on China’s economic and social development and pose grave threats to people’s health. Taken in this context, pressure to cut emissions, restrictions and other measures can only slow down, reduce emissions, and cannot fundamentally eradicate smog. Only by vigorously developing PV-representative of renewable and clean energy, fundamentally change China’s energy consumption structure and realization of electric power, energy consumption and electricity production cleaner, to fundamentally solve the current smog trapped. But at present, the PV industry and the air, the environment of green strategic emerging industries and the transformation of economic development pattern is closely related to, but under higher taxes, in fact, have severely inhibited the healthy development of the industry.

In this regard, Liu hanyuan members recommendation: clean up and reform the irrational tax system; all the tax relief for the photovoltaic industry.

PV industry as a national green industry, its healthy development, national and enterprises to work together, Chairman Liu hanyuan’s advice not only on the development of industry leading companies and care, is also a powerful booster of industrial development, to promote PV industry towards a brilliant future.

Posted in Solar Charger.