China strengthens financial support for solar companies to accelerate their deployment

A series of financial incentives to help solar power developers and manufacturers have been unveiled by the People’s Bank of China. Image: Fotopedia.

China will step up support for domestic solar companies with the aim of accelerating the country’s development.

The country’s People’s Bank of China has confirmed in a press release a series of new measures including financial support to companies involved in the development of solar and wind deployment, designed to promote the “rapid development” of new projects in China.

This follows a statement issued by Chinese President Xi Jinping earlier this month that said the country’s energy structure, currently “dominated by fossil fuels”, must adapt to a system more optimized for clean energy. . To achieve this, Jinping called for the “vigorous” development of new renewable energies and said a new set of policies and measures would be unveiled to accelerate deployment.

The new energy security strategy, the bank said, builds on China’s broader goal, established as part of its 14e Five-year plan, to reach peak carbon emissions by 2030 on the way to achieving net zero status by 2060.

The financial supports described include extending or renewing loans to renewable energy companies identified as having short-term financial pressures, but with the potential for long-term profit, while subsidized loans for developers of projects listed. on the list of country grants will also be available.

Other measures outlined by the bank include a commitment to use “all relevant powers” to ensure that buyers pay the tariff surcharges in full for renewables, while the local government will not be able to reduce or offer reductions. surcharge exemptions.

Solar deployment in China is expected to skyrocket this year as the country doubles its renewable energy strategy. With deployment forecasts for 2020 hovering around the 50 GW market, China’s solar deployment figure for 2021 is expected to hit the 70 GW mark well, with most analyst forecasts in the 65 – 75 GW range.

Domestic solar manufacturers also appear to expect a rush of installations throughout 2021 and beyond, with tens of gigawatts of new manufacturing capacity – from polysilicon to cells, wafers and module assembly – due to enter into production. service throughout the year.

The Chinese government has also taken steps to ease supply chain constraints on raw materials, lifting restrictions on manufacturing solar-grade glass to deal with a shortage that module makers say was “out of control” at the end of last year.

Shortages of raw materials are still a widespread problem in the country, however, and have been blamed for a recent increase in module prices seen in the country, which is expected to spread widely to international markets shortly.

Additional reporting by Carrie Xiao.


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