China's NDRC cuts solar subsidies to avoid industry overheating

The new on-grid power tariffs will range between US$7.8-11c/kWh starting 1 June 2018.

The Chinese National Development and Reform Commission (NDRC) and the Ministry of Finance have issued the 2018 Solar PV Power Generation Notice, a new policy regarding investment and subsidies for photovoltaic (PV) installations.

This new regulation introduces a CNY5c/kWh (US$0.8c/kWh) cut in the nationwide feed-in-tariff (FiT) and in the subsidies for PV distributed projects. The new on-grid power tariffs will range between CNY0.5/kWh to CNY0.7/kWh (US$7.8-11c/kWh) starting from 1 June 2018, while the subsidies for county-level poverty alleviation PV projects will remain stable.

Besides, the NDRC and the National Energy Administration also announced that the construction of new solar utility-scale power projects must be halted until further notice. The utility-scale target for 2018 has been abolished and all Chinese provinces will be forced to impose bans on all companies seeking FiTs under any 2018 mechanism.

This article was originally published by Enerdata.