China’s solar panel producers have certainly been going through some difficult times in recent months.
So much so that the China Daily, who claim the information has come from not only officials in the solar panel industry but also sources within the Chinese government, reported at the weekend that the Chinese government is currently looking at various policies that include such things as making it easier to gain access to the grid and also providing subsidies.
Meng Xiangan, who is the Deputy Director of the State Grid Corp who are the biggest utility in China that is state-owned, made it known that they are seriously giving consideration to its city level subsidiaries being allowed to rubber stamp those solar power plants that have an installed capacity of below 10,000 kilowatts to be attached to the grid.
A meeting took place a few days ago at which the State Grid Corp additionally provided their agreement in principal to not make any charges in respect of connections to their grid that would normally cost several million yuan. A plan has also been submitted to China’s central government that is waiting to be approved that is intended to further develop the solar industry in China.
Meng Xiangan stated: “The obstacles companies face in order to be connected to the national grid are the biggest problem for the solar power industry.”
In addition, the National Energy Administration is currently developing a plan with a view to providing subsidies that would be anywhere from around 0.40 yuan ($0.06) up to 0.60 yuan ($0.09) for every kilowatt-hour of solar power that is distributed.
The China Daily claims that both local government and central government would be providing the subsidies.
The solar panel industry in China has suffered because of excessive capacity in manufacturing including the export market but there has been a big reduction in demand from overseas with European countries reducing their subsidies in respect of green power. Companies have cut their prices by as much as 30 per cent in 2012 as the levels of stock have grown resulting in the solar panel industry’s profits being almost erased. In the USA, Chinese solar panel producers are facing anti-dumping tariffs.