China sets $435m solar subsidy budget for 2019

Of the total, $108.62m will be allocated to rooftop power projects with a combined capacity of 3.5GW.

China’s National Energy Administration will allocate $435m (RMB3b) worth of subsidies for new solar projects in 2019, a report by Reuters revealed.

Of the total, $108.62m (RMB750m) will be allocated to rooftop power projects with a combined capacity of 3.5GW, and the rest will be assigned for solar stations.

For the first time, Beijing will set an annual cap on solar subsidies, in the nation’s latest bid to limit the capacity of subsidized solar projects and ease a payment backlog that stands at $17.38b (RMB120b).

The subsidies will not be applicable for under-construction solar projects which are unable to connect to power grids by the end of this year, the NEA said.

Solar operators are required to submit applications for subsidies to the NEA by 1 July, stating their expectations on installed capacity and annual operating hours of projects.

China, the world’s biggest emitter of greenhouse gases, plans to end subsidies for new onshore wind power projects at the start of 2021, a milestone for the renewable energy sector that has traditionally relied on preferential policies to encourage developers to build plants.

Read the full report here.