In recent days, PV insiders began to be active. After announcement of several favorable policies, emotion of those PV insiders has been ignited again. Confidence in winter days matters the most. With the signal of recovering, PV insiders just feel ignition of flame in cool winter days. They just need to wait patiently and continue to insist, then rejuvenation of PV industry will not be afar.
Speaking of PV industry every time, many PV insiders may exclaim with much emotion. They may go through winter days again and many people may give up without seeing any hope. We just know that PV industry has gone through several winter period and finally survived. PV industry with strong life can be rejuvenated again in gloomy period as long as a little flame is ignited.
Policies are becoming favorable
1 National policy
On Oct. 9th, NDRC (National Development and Reform Commission), Ministry of Finance and National Energy Administration (NEA) had jointly issued the Notice on Description on PV Power Generation Relevant Items in 2018. The notice has clearly confirmed that legal distributed PV power generation projects of residential natural persons registered and commenced before 5.31 and grid-connected and operated before 6.30 of this year will included into the management scope recognized and approved by the country, while the normal on-grid power price and subsidy for each kwh power will keep the same.
Recently, two departments in Jiangsu Province has released the Letter on Asking for Comments and Suggestions on PV Power Generation Subsidy. This letter claimed that the subsidy standard for residential PV is 0.32 yuan/kwh, while that for general distributed PV is 0.1 yuan/kwh.
Development and reform commission and other five departments of Zhejiang Province has released the rules on Notice on Relevant Items on Supporting PV Power Generation Application in 2018 in Zhejiang Province. This notice claimed to provide a subsidy of 0.32 yuan/KWH for residential PV while a subsidy of 0.1 yuan/KWH for commercial PV projects.
4 Dongguan in Guangdong Province
On July 6th, the Development and Reform Bureau of Dongguan City in Guangdong Province has released Notice on Organizing to Apply for Distributed PV Power Generation Subsidy Project during the year 2017-2018. A subsidy of 0.3 yuan/KWH will be offered to investment body of the PV power generation projects and the subsidy will last for 5 years.
5 Beijing, Shanghai
Subsidy on residential PV in Beijing and Shanghai also ranks the upper level nationally. Subsidy for residential PV in Shunyi District in Beijing is 0.40 yuan/KWH, and subsidy for each KWH for commercial PV projects in Shanghai is 0.25 yuan/KWH, while subsidy for each KWH power of natural person users is 0.40 yuan/KWH.
Grid parity is not afar
Since the New Announcement, the most direct feeling for PV insiders is continuous falling of PV devices, till breaking our bottom line. We also come across an embarrassment — products may still be hard to sold out no matter how cheap they are. They are marked with certain price but there’s no market for them. In summary, price of the modules hasn’t fallen to the stage suitable for grid parity. The current price falling is just a forced sale value. There is still a certain distance to approach to grid parity.
With technical upgrading of PV products, some manufacturers strive hard to reduce product cost for survival. The cheaper the PV system, the nearer grid parity will step forward.
Returning back to the market
Going through this cold winter, PV industry will experience the final “adult ceremony”. All limits on subsidy will finally be released and PV industry will officially return to the market to become healthy industry. As a kind of renewable green energy, PV industry develops and becomes strong by relying on subsidy. So it’s natural that PV industry is relatively much affected by policies. Officially stepping into the grid parity on-grid phase, PV industry will finally become the most promising energy industry.