Connect with us

Hi, what are you looking for?

CleanTechnica

Cap And Trade

China To Phase Out Financial Support For Solar Power Sector By 2020

With the most aggressive and ambitious capacity addition targets in the solar power sector, China may soon see the technology mature enough to pull the high financial support currently on offer.

Recent media reports quoting Chinese officials abreast with information about the solar power policy in the 13th Five Year Plan (2016-2020) state that financial support in the form of high tariffs and even incentives to equipment manufacturers would go by the end this decade.

China targets 35 GW of installed solar power capacity by end of 2015, a target which the country could even exceed, given the unprecedented capacity addition seen over the last three years. The target for 2020 is even more aggressive, as the country hopes to add 65 GW between 2016 and 2020.

These mammoth renewable energy targets are part of China’s internal policy to achieve an international voluntary target to reduce the share of fossils fuels in its primary energy consumption and reduce carbon intensity by 40–45% by 2020 from 2005 levels.

The solar power sector may not need any large financial support from the government either. Module prices have fallen significantly over the last few years and show no sign of any drastic reversal. As China aims to reduce coal consumption and reduce greenhouse gas emissions through a national-level emissions trading scheme (ETS).

As power companies move away from coal, solar would (or should) seem an appropriate choice. Likewise, companies covered under the ETS would also likely make investments in solar and other renewable energy projects in an attempt to reduce their compliance costs.

The conjugation of renewable energy policies and emission reduction market mechanisms may very well make it possible for the Chinese government to slowly pull back the support it is currently offering the project developers.

 
 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

New Podcast: Cruise Talks Autonomous Driving Tech, Regulations, & Auto Design

New Podcast: Battery Mineral Mining Policies & Regional Trends

Written By

Mridul currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Clean Power

The grid-connected 2.2 GW PV plant is located in Qinghai Province at an average altitude of over 3000 m. Built in five phases, it...

Batteries

China's largest solar-plus-storage project has been connected to the grid. How big is it — 500 megawatts (MW)? 700 MW? 1,100 MW? Nope, we're...

Cars

Welcome to the next issue of China x Cleantech, our August 2019 edition. For our full China × Cleantech history, stroll over to the “Future...

Batteries

Welcome to the next issue of China x Cleantech, our July 2019 edition.

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.