China ramps up financial supports for solar companies to accelerate deployment

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
A suite of financial incentives to help solar developers and manufacturers has been unveiled by the People’s Bank of China. Image: Fotopedia.

China is to ramp up its support of domestic solar companies in a bid to fast-track development in the country.

The country’s People’s Bank of China has confirmed in a statement a suite of new measures comprising financial supports for companies involved in the development of solar and wind  deployment, designed to promote the “rapid development” of new projects in China.

It follows a statement issued by Chinese President Xi Jinping earlier this month which stated that the country’s energy structure, currently “dominated by fossil fuels”, must adjust to a system more optimised for clean power. To achieve this, Jinping called for the “vigorous” development of new renewables and stated that a new series of policies and measures would be unveiled to accelerate deployment.

The new strategy for energy security, the bank said, builds on China’s wider goal, established within its 14th Five Year Plan, to achieve peak carbon emissions by 2030 en route to attaining net zero status by 2060.

The financial supports outlined include the extension or renewal of loans to renewables companies identified as having short-term financial pressures, but with long-term profit potential, while subsidised loans for project developers included on the country’s subsidy list will also be forthcoming.

Further measures outlined by the bank include a commitment to use “all relevant powers” to ensure offtakers pay renewable energy tariff surcharges in full, while local government will not be able to reduce or offer exemptions from the surcharges.

Solar deployment in China is tipped to soar this year as the country doubles down on its renewables strategy. With deployment forecasts for 2020 hovering around the 50GW market, China’s solar deployment figure for 2021 is widely anticipated to reach the 70GW mark, with most analyst forecasts falling in the 65 – 75GW range.

Domestic solar manufacturers would also seem to be expecting a rush of installations throughout 2021 and beyond, with tens of gigawatts of new manufacturing capacity – from polysilicon to cells, wafers and module assembly – set to come onstream over the course of the year.

The Chinese government has also moved to ease supply chain constraints relating to raw materials, lifting restrictions on the manufacture of solar-grade glass to address a shortage which module manufacturers said was “out of control” at the end of last year.

Raw material shortages are, however, still a prevalent issue in the country and have been blamed for a recent increase in module prices witnessed in the country, one which is widely anticipated to spread to international markets shortly.

Additional reporting by Carrie Xiao.

4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.

Read Next

PV Tech Premium
July 1, 2022
PV Tech Premium spoke with Cypress Creek Renewable Energy and AES Clean Energy to discuss the newly formed US Solar Buyer Consortium, its objectives, market challenges and the potential advantages it holds for US manufacturing and project development.
PV Tech Premium
June 30, 2022
US authorities’ move to require documentation showing the source of quartzite in solar module imports should come as no surprise, experts have said, amid suggestions most companies will be able to overcome the latest hurdle that threatens to delay shipments.
June 30, 2022
The solar industry supply chain’s jitters continued this week after polysilicon prices hit another high, driving silicon wafer prices further upward too.
June 30, 2022
D.E. Shaw Renewables Investments (DESRI) has secured up to US$400 million in new capital finance to support its US renewables strategy.
June 29, 2022
The US solar industry is facing fresh module shipment delays after new import documentation was demanded by Customs and Border Protection (CBP).
June 29, 2022
Spanish independent power producer (IPP) Opdenergy is planning to launch an initial public offering (IPO) to finance its target of reaching 3.3GW of renewables assets in operation and under construction by 2025.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event