China to raise rooftop solar power subsidies by up to 55%
September 11, 2014 Category Alternative energy, Environment
China plans to increase the subsidy on power sales by rooftop solar farm developers to state-owned power distributors by up to 55%, and compel the latter to act as an agent for collecting power bills if the developers directly sell to local customers. The consensus plan was reached after a meeting between state-backed financial institutions, bank regulators and the National Energy Administration (NEA). It is aimed at relieving financing difficulties that have hindered installations, and is pending final approval by Beijing. Currently, rooftop projects are entitled to a state subsidy of CNY0.42 per kilo-watt-hour (kWh) of output, on top of whatever prices developers manage to get from end-users. If the developers fail to sell all of their output to local users, local power grid operators are obliged to buy the remainder at prices that typically vary from CNY0.35 to CNY0.45 per kWh. The new policy will allow the rooftop projects developers to receive a total revenue of CNY0.95 to CNY1 per kWh, matching that of ground-mounted projects. This means the rooftop subsidy could rise by 31% to 55% from the current CNY0.42, sharply boosting viability. The NEA has set a 14 GW target for installations of solar farms this year, up from 12.9 GW last year. Some 8 GW of the target is for rooftop projects, and 6 GW for ground-mounted ones, mostly in remote areas. However, less than 2 GW of rooftop projects were installed in the first five months of this year as banks were reluctant to lend, the South China Morning Post reports.
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