Did China's governmental subsidies affect the PV industry?

Conclusions and policy implications From the above analysis as well as the empirical perspective, it can be seen that China’s governmental subsidies for PV industry had a very good effect on the prosperity of the industry and cultivated a number of outstanding enterprises.

Why does China have a huge solar energy subsidy deficit?

It is believed that such a lagged change and resulting over-subsidization brought about more PV capacity than can be absorbed by the grid . It also resulted in a big deficit in the government budget. By 2018, China's renewable energy subsidy deficit exceeded 100 billion yuan, half of which was attributed to the PV industry.

How did China's solar subsidy phase-out affect energy consumption?

The announcement of subsidy phase-out led to a larger energy “rebound effect”. They adjusted electricity usage patterns to maximize revenue from solar electricity. With the impending post-subsidy era, the Chinese government has initiated significant reductions in household photovoltaic (PV) subsidies.

How much subsidy do solar panels get in Tianjin?

Since 2018, households that choose to adopt solar panels receive a subsidy of only 0.37 RMB/kWh for each kilowatt-hour of PV power generated. The electricity price for residents in Tianjin is 0.49 RMB/kWh. The reduced subsidy of 0.05 RMB/kWh accounts for nearly 10% of the electricity price, indicating a substantial reduction in the subsidy.

What is China's new PV subsidy policy?

The new “5.31” policy is believed to have been the most stringent regulation of China’s PV industry to date, and policymakers had obviously underestimated its impact on the industry. Accurately estimating the impact of PV subsidy policy helps avoid both lagged and dramatic changes in government policies.

Which subsidy policy is responsible for China's solar irradiation surge?

The critical subsidy policy responsible for this surge in China has been the zonal feed-in tariff (FIT). Under the zonal FIT policy , the whole area of China is divided into three different resource zones according to their solar irradiation resources, and each zone has its own FIT levels.