China's Hebei Province Will Phase Out Solar Subsidies Next Year

- May 28, 2018-

China's hebei province will stop subsidizing some new solar power plants in January.It is understood that this is part of a reduction in government support for the industry.


China is reducing direct subsidy support for the solar industry, which has cut construction and production costs by an average of 90 per cent between 2007 and 2017, according to government data.Hebei's new policy will initially apply to solar power plants built as part of a national plan to create revenue opportunities for poor areas.

Hebei will continue to pay an additional 0.2 yuan (us $0.03) per kilowatt-hour (KWH) to qualified solar power facilities connected to the power grid by the end of this year, with subsidies lasting three years.It said the new plant, which will come into service after January 1, 2019, will not be subsidized.

By the end of last year, China had generated 13 gigawatts of solar power, 68 per cent more than in 2016 and 32.4 per cent of the world's total.The rapid growth of recent years has put the government under financial pressure and led to long-term subsidy payments.

Although subsidies are being phased out, the government has pledged to reduce the burden on renewable energy producers by strengthening purchase agreements with local power grids and reducing land costs.