November 2nd, 2012 by Tauseef Hussain
The Chinese government takes its solar power industry seriously, and considers the best policies to support and improve the industry at large.
A report on China’s solar power scenario shows that it is working to improve the environment for producers of solar power in the domestic market.
Meng Xiangan, the deputy director of The State Grid Corp, which is the leading nationalized State Grid of China, for example, has said that there are plans to allow the national grid’s city subsidiaries to approve solar power plants that have an installed capacity less than 10,000 kilowatts on their own.
Meng further added charges to join the grid may be dropped for such projects. These charges tend to cost millions of yuan.
“The obstacles companies face in order to be connected to the national grid are the biggest problem for the solar power industry,” Meng noted.
Furthermore, a roadmap is being worked out in order to offer subsidies in the range of 0.40 yuan (which is approximately $0.06) to 0.60 yuan per kilowatt-hour of solar power. This subsidy would come from central and local governments.
Surplus manufacturing capacity and declining demands in the global arena due to slashing of European solar subsidies has adversely affected China’s export-centric solar panel industry.
The prices have been hacked up to 30 percent in the current year by companies in the fray, which slammed industry profits. In addition, US as well as possible European and Indian import duties on Chinese solar panels and solar panel components make the situation even harder for these Chinese companies.
The Chinese domestic market has been a prolific resort for many Chinese producers, such as Trina Solar and Suntech Power Holdings. Governmental policies further supporting solar installation in China should be a good additional help.
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