Effective August 1, 2021, China will stop subsidizing new solar farm projects, distributed solar projects for commercial users, and onshore wind farms. For years, China had been generous towards wind and solar projects.
The motivation behind the cut was that China wanted to ensure the local solar industry was economically sustainable over the long term. However, more recently, China’s finance ministry committed to granting 57 percent more subsidies to solar power projects this year, but cut subsidies for wind power.
This research was funded by the National Social Science Foundation of China (20BGL046). Government subsidies (GSs) have triggered a remarkable increase in the production capacity of photovoltaic (PV) electricity in China. However, the lack of core technologies has limited PV enterpris...
Following that, the subsidies decreased dramatically from 0.32 yuan/kw▪h to 0.18 yuan/kw▪h in the case of household-distributed PV projects) and 0.1 yuan/kw▪h in the case of centralized PV projects and commercially distributed PV projects.
Some scholars have used data envelopment analysis and the Tobit model to analyze the relationship between the development of China's PV industry and government subsidies, and the study shows that government subsidies play an important role in improving the innovation efficiency of China's PV industry (Lin and Luan, 2020).
BEIJING — China will end the subsidies for new centralized photovoltaic stations, distributed photovoltaic projects and onshore wind power projects from the central government budget in 2021 and achieve grid parity, according to the country's top economic planner on June 10.