Solar and wind energy subsidies slashed

Business & Technology

solar energy

SupChina illustration by Derek Zheng

Caixin reports on “the latest move to alleviate government financial pressures”:

The National Energy Administration announced Tuesday that this year’s national subsidies for new solar power projects will be 1.5 billion yuan ($215.8 million) [or] 50% lower than before. One billion yuan will be allocated to large solar projects through an auction process, and the remainder will be used for residential solar systems.

The country is also scrapping subsidies for new offshore wind projects starting this year, and is set to end subsidies for new onshore wind farms in 2021.

What does this mean for renewable energy in China?

China has heavily subsidized the renewable energy sector for many years. This round of budget cuts is intended to pressure companies to compete with coal-fired utilities on price.

For more, see Greentech Media: Is China ready for subsidy-free renewables?