China’s solar industry expected to become subsidy-free by 2021

24 May, 2019 12:00 AM printer

BEIJING: Industry insiders believe China's solar industry will become subsidy-free in a few years as the country tries to revitalize its photovoltaic sector after the government announced a plan to scale back its central subsidy system last year, China Daily reported Thursday.

China's solar industry is expected to transition toward a subsidy-free market as early as 2021, according to the newspaper, citing an analysis of China's solar industry published by Asia Europe Clean Energy (Solar) Advisory, reports Xinhua.

The Chinese government has outlined a series of policies this year, looking to remove the hurdles that have been preventing the escalation of subsidy-free photovoltaic projects in the world's biggest solar power market, the paper reported.

China's National Energy Administration (NEA) announced plans in April to drive the development of new subsidy-free solar projects through policy support, hoping new projects will be developed without the need for governmental subsidies, which it believed will steer the market in a new direction toward zero-subsidy renewables, according to the report. According to the NEA, subsidy-free pilot projects commissioned by 2020 can enjoy 20-year power purchase agreements with fixed prices and top dispatch priority, guaranteed by grid companies.