China will end the subsidies for new centralized photovoltaic stations, distributed photovoltaic projects and onshore wind power projects from the central government budget in
Therefore, it is essential to study how to set a reasonable level of government subsidies to match the development of China''s PV industry, stimulate the intrinsic
Due to the government''s strong desire in developing strategic emerging industries in China, generous subsidies have been granted to PV enterprises and have triggered a
This article summarizes the internal and external environment of China''s PV industry and describes its future trends and prospects and also discusses a proposed rate-making process
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
The Chinese Government has issued numerous regulations that significantly affect the number of photovoltaic (PV) installations in the country and the subsidies for their use.
Due to the government''s strong desire in developing strategic emerging industries in China, generous subsidies have been granted to PV enterprises and have triggered a
China''s National Energy Administration (NEA) has set forth the permitting rules for the construction of PV projects, including the bidding system for both distributed PV and utility
In order to explore the interrelation between government subsidy and corporate business performance of the PV industry in China, this paper introduces the square term of
Though China does not yet have in place a fully developed financial incentive system for renewable energy, the government has been providing support since the 1950s.
This research adds to the existing literature on the impact of government subsidies on PV industrial development, especially for China with relatively few studies.
Some scholars have used data envelopment analysis and the Tobit model to analyze the relationship between the development of China's PV industry and government subsidies, and the study shows that government subsidies play an important role in improving the innovation efficiency of China's PV industry (Lin and Luan, 2020).
Therefore, it is necessary to study the effect of government subsidies on China's photovoltaic industry. Although scholars have been studying the effect of government subsidies for a long time, the research on the government subsidy effect for China's photovoltaic industry appears only in recent years.
In other words, China’s PV market is almost totally dependent on its FIT subsidies. It seems that some existing literature may have greatly underestimated the impact of FIT subsidies on the PV industry; for the same reason, the central government acted very abruptly in cancelling the subsidies on May 31st, 2018.
Results show that an increase of 0.1 yuan/kWh (~$0.014/kWh) in PV subsidies adds about 18 GW/year of installed capacity to the national PV market, right in the middle of previous estimates in the literature. From a different perspective, if China did not have any PV subsidies, the PV deployment market would virtually disappear.
However, lucrative government subsidies often lead to PV enterprises not paying attention to technological innovation and blind production. Therefore, to improve the efficiency of government subsidies, enhance the overall performance of the PV supply chain, and achieve the healthy and long-term development of the PV industry.
When supported by government subsidies, the government should give full consideration to the power structure of the PV supply chain companies, and the relationship of equal status of supply chain companies is most conducive to the government's implementation of PV subsidies.
