When will China stop subsidizing solar projects?

Effective August 1, 2021, China will stop subsidizing new solar farm projects, distributed solar projects for commercial users, and onshore wind farms. For years, China had been generous towards wind and solar projects.

Why did China cut solar subsidies?

The motivation behind the cut was that China wanted to ensure the local solar industry was economically sustainable over the long term. However, more recently, China’s finance ministry committed to granting 57 percent more subsidies to solar power projects this year, but cut subsidies for wind power.

Are energy subsidies necessary in China?

In China, the common practices of government energy price setting imply energy subsidies. For a transitional economy like China, some energy subsidies are justifiable, sometimes even necessary.

Is China subsidizing solar panels?

In 2012, several U.S. solar panel manufacturers filed a complaint with the Commerce Department stating that China was subsidizing domestic firms' production of solar panels.

When will China's Renewable subsidy end?

To recap, a general decision to sunset renewable subsidy has been made by the Beijing authority back in May 2018. The policy then determined that onshore wind and mounted solar projects will first reach “grid-parity”—by the end of 2020.

How much do electricity and coal subsidies cost in China?

Electricity net subsidies represent the second largest subsidy, amounting to CNY 76.39 billion, approximately 21.41% of total subsidies and 0.31% of GDP. Coal subsidies are estimated at CNY 53.2 billion, amounting to 14.91% of total subsidies and 0.21% of GDP.